[House Report 111-326]
[From the U.S. Government Publishing Office]


111th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    111-326

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PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 3639) TO AMEND THE CREDIT 
   CARD ACCOUNTABILITY RESPONSIBILITY AND DISCLOSURE ACT OF 2009 TO 
 ESTABLISH AN EARLIER EFFECTIVE DATE FOR VARIOUS CONSUMER PROTECTIONS, 
                         AND FOR OTHER PURPOSES

                                _______
                                

  November 3, 2009.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

  Mr. Perlmutter, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 884]

    The Committee on Rules, having had under consideration 
House Resolution 884, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for consideration of H.R. 3639, the 
Expedited CARD Reform for Consumers Act of 2009, under a 
structured rule. The resolution provides one hour of general 
debate equally divided and controlled by the chair and ranking 
minority member of the Committee on Financial Services. The 
resolution waives all points of order against consideration of 
the bill except clauses 9 and 10 of rule XXI. The resolution 
provides that the amendment in the nature of a substitute 
recommended by the Committee on Financial Services now printed 
in the bill, modified by the amendment printed in part A of 
this report, shall be considered as adopted and provides that 
the bill, as amended, shall be considered as the original bill 
for the purpose of further amendment under the five-minute rule 
and shall be considered as read. The resolution waives all 
points of order against the bill, as amended. This waiver does 
not affect the point of order available under clause 9 of rule 
XXI (regarding earmark disclosure).
    The resolution makes in order only those further amendments 
printed in part B of this report. The amendments made in order 
may be offered only in the order printed in this report, may be 
offered only by a Member designated in this report, shall be 
considered as read, shall be debatable for the time specified 
in this report equally divided and controlled by the proponent 
and an opponent, shall not be subject to amendment, and shall 
not be subject to a demand for a division of the question in 
the House or in the Committee of the Whole. All points of order 
against the amendments in part B except for clauses 9 and 10 of 
rule XXI are waived. The resolution provides that for those 
amendments reported from the Committee of the Whole, the 
question of their adoption shall be put to the House en gros 
and without demand for division of the question. The resolution 
provides one motion to recommit with or without instructions.
    The resolution provides that the Chair may entertain a 
motion that the Committee rise only if offered by the chair of 
the Committee on Financial Services or his designee and that 
the Chair may not entertain a motion to strike out the enacting 
words of the bill (as described in clause 9 of rule XVIII).

                         EXPLANATION OF WAIVERS

    Although the rule waives all points of order against 
consideration of the bill (except for clauses 9 and 10 of rule 
XXI) and all points of order against the bill, as amended, the 
Committee is not aware of any points of order. The waivers of 
all points of order are prophylactic.

       SUMMARY OF AMENDMENT IN PART A TO BE CONSIDERED AS ADOPTED

    The amendment clarifies that the accelerated effective date 
of December 1, 2009 will apply only to those provisions in 
Titles I-III of the Credit CARD Act that now have an effective 
date on or after February 22, 2009. These are the titles of the 
Credit CARD Act that deal directly with credit cards. The 
amendment also provides that the accelerated effective dates 
are not applicable to any credit card issuer which is a 
depository institution with fewer than 2,000,000 credit cards 
in circulation as of the date of enactment of this bill.

          SUMMARY OF AMENDMENTS IN PART B TO BE MADE IN ORDER

    (Summaries derived from information provided by sponsors.)
    1. Hensarling (TX): Would clarify that changes to a credit 
card agreement that reduce a customer's interest rate or other 
fees can be implemented immediately, instead of being subject 
to the 45-day waiting period required under the CARD Act of 
2009. (10 minutes)
    2. McCarthy, Carolyn (NY), Markey, Betsy (CO): Would 
provide that any card issuer that imposes a moratorium on 
increases in rates, fees and terms and conditions of a contract 
would be exempt from the accelerated date for the provision 
requiring an issuer to apply a customer's payment in excess of 
the minimum amount due, to the highest rate balance. (10 
minutes)
    3. Maffei (NY): Would set the effective date of certain 
provisions of the CARD Act of 2009 to the enactment date of 
this Act. (10 minutes)
    4. Sutton (OH): Would prevent the closure of a credit card 
account in response to the imposition of a new fee from 
negatively impacting a consumer's credit report or credit 
score. (10 minutes)
    5. Stupak (MI): Would impose a moratorium on increasing 
annual percentage rates, fees and finance charges, as well as a 
moratorium on changing the terms for repayment of outstanding 
balances on credit card accounts, for nine months after 
enactment of this Act. (10 minutes)

         PART A--TEXT OF AMENDMENT TO BE CONSIDERED AS ADOPTED

  Page 5, strike line 6 and all that follows through line 17 
and insert the following new section:

SEC. 2. EARLIER EFFECTIVE DATE FOR CREDIT CARD PROVISIONS OF THE CREDIT 
                    CARD ACT OF 2009.

  Section 3 of the Credit Card Accountability Responsibility 
and Disclosure Act of 2009 (15 U.S.C. 1602 nt.) is amended--
          (1) by striking ``This Act'' and inserting ``(a) In 
        General.--This Act''; and
          (2) by adding at the end the following new 
        subsections:
  ``(b) Certain Credit Card Provisions.--Except as otherwise 
specifically provided in this Act, titles I, II, and III, and 
the amendments made by such titles, shall take effect on 
December 1, 2009.
  ``(c) Certain Credit Card Issuers.--Except as otherwise 
specifically provided in this Act and notwithstanding 
subsection (b), the effective date established under subsection 
(a) shall apply with respect to the application of titles I, 
II, and III, and the amendments made by such titles, to any 
credit card issuer which is a depository institution (as 
defined in section 19(b)(1)(A) of the Federal Reserve Act) with 
fewer than 2,000,000 credit cards in circulation as of the date 
of the enactment of this Act.''.

                PART B--TEXT OF AMENDMENTS MADE IN ORDER

  1. An Amendment To Be Offered by Representative Hensarling, Jeb of 
            Texas, or His Designee, Debatable for 10 Minutes

  Page 7, after line 18, insert the following new section:

SEC. 4. CLARIFICATION THAT 45-DAY DELAY DOES NOT APPLY TO REDUCTIONS IN 
                    INTEREST RATES AND FEES.

  Subsection (i) of section 127 of the Truth in Lending Act (15 
U.S.C. 1637) (as added by section 101(a)(1) of the Credit CARD 
Act of 2009) is amended by adding at the end the following new 
paragraph:
          ``(5) Clarification.--No provision of this subsection 
        shall be construed as preventing any creditor from 
        putting any reduction in an annual percentage rate, any 
        decrease or elimination of any fee imposed on any 
        consumer, or any significant change in terms solely or 
        primarily for the benefit of the consumer into effect 
        immediately.''.
                              ----------                              


 2. An Amendment To Be Offered by Representative McCarthy, Carolyn of 
          New York, or Her Designee, Debatable for 10 Minutes

  Page 7, after line 18, insert the following new section:

SEC. 4. MORATORIUM ON INCREASES IN RATES AND FEES AND CHANGES IN TERMS 
                    TO THE DETRIMENT OF THE CONSUMER.

  Notwithstanding any other provision of this Act or any 
amendment made by this Act, subsection (b) of section 164 of 
the Truth in Lending Act (as added by section 104(4) of the 
Credit Card Accountability Responsibility and Disclosure Act of 
2009 (Public Law 111-24)) shall not take effect until February 
22, 2010 for any creditor with respect to an existing credit 
card account under an open end credit plan, or such a plan 
issued on or after the date of enactment, as long as the 
creditor does not--
          (1) increase any annual percentage rate, fee, or 
        finance charge applicable to any existing or future 
        balance, except as permitted under subsection 171(b) of 
        the Truth in Lending Act (as added by Public Law 111-
        24); or
          (2) change the terms to the detriment of a consumer, 
        including terms governing the repayment of any 
        outstanding balance, except as provided in section 
        171(c) of the Truth in Lending Act (as added by Public 
        Law 111-24).
                              ----------                              


 3. An Amendment To Be Offered by Representative Maffei, Daniel of New 
            York, or His Designee, Debatable for 10 Minutes

  In section 2 of the bill, strike ``December 1, 2009'' and 
insert ``the date of the enactment of the Expedited CARD Reform 
for Consumers Act of 2009''.
  Page 6, beginning on line 2, strike ``December 1, 2009'' and 
insert ``the date of the enactment of the Expedited CARD Reform 
for Consumers Act of 2009''.
  Page 6, line12, strike ``December 1, 2009'' and insert ``the 
date of the enactment of the Expedited CARD Reform for 
Consumers Act of 2009''.
  Page 7, beginning on line 2, strike ``December 1, 2009'' and 
insert ``the date of the enactment of the Expedited CARD Reform 
for Consumers Act of 2009''.
  Page 7, line 12, strike ``December 1, 2009'' and insert ``the 
date of the enactment of the Expedited CARD Reform for 
Consumers Act of 2009''.
                              ----------                              


4. An Amendment To Be Offered by Representative Sutton, Betty of Ohio, 
               or Her Designee, Debatable for 10 Minutes

  Page 7, after line 18, insert the following new section:

SEC. 4. ADDITIONAL LIMITATIONS ESTABLISHED.

  Section 127 of the Truth in Lending Act ( U.S.C. 1637) is 
amended by inserting after subsection (r) (as added by the 
Credit CARD Act of 2009) the following new subsection:
  ``(s) Cancellation of Account Without Detrimental Effect.--
If, in the case of a credit card account under an open end 
consumer credit plan, the consumer receives notice of the 
imposition of a new fee, and within the 45-day period beginning 
on receipt of such notice, pays off any outstanding balance on 
the account, no creditor and no consumer reporting agency (as 
defined in section 603) may use such pay off or closure of the 
consumer credit account to negatively impact the consumer's 
credit score or consumer report (as such terms are defined in 
section 609 and 603, respectively).''.
                              ----------                              


    5. An Amendment To Be Offered by Representative Stupak, Bart of 
          Michigan, or His Designee, Debatable for 10 Minutes

  Page 7, after line 18, insert the following new section:

SEC. 4. MORATORIUM ON RATE INCREASES.

  (a) In General.--During the period beginning on the date of 
the enactment of this Act and ending 9 months after the date of 
the enactment of the Credit Card Accountability Responsibility 
and Disclosure Act of 2009, in the case of any credit card 
account under an open end consumer credit plan--
          (1) no creditor may increase any annual percentage 
        rate, fee, or finance charge applicable to any 
        outstanding balance, except as permitted under 
        subsection 171(b) of the Truth in Lending Act (as added 
        by Public Law 111-24); and
          (2) no creditor may change the terms governing the 
        repayment of any outstanding balance, except as set 
        forth in section 171(c) of the Truth in Lending Act (as 
        added by Public Law 111-24).
  (b) Definitions.--For purposes of this section, the following 
definitions shall apply:
          (1) Annual percentage rate.--The term ``annual 
        percentage rate'' means an annual percentage rate, as 
        determined under section 107 of the Truth in Lending 
        Act (15 U.S.C. 1606).
          (2) Finance charge.--The term ``finance charge'' 
        means a finance charge, as determined under section 106 
        of the Truth in Lending Act (15 U.S.C. 1605).
          (3) Outstanding balance.--The term ``outstanding 
        balance'' has the same meaning as in section 171(d) of 
        the Truth in Lending Act (as added by Public Law 111-
        24).
          (4) Other terms.--Any term used in this section that 
        is defined in section 103 of the Truth in Lending Act 
        (15 U.S.C. 1602) and is not otherwise defined in this 
        section shall have the same meanings as in section 103 
        of the Truth in Lending Act.
  (c) Regulatory Authority.--
          (1) In general.--The Board of Governors of the 
        Federal Reserve System may prescribe such regulations 
        as may be necessary to carry out this section.
          (2) Effective date.-- The provisions of this section 
        shall take effect upon the date of the enactment of 
        this title, regardless of whether rules are issued 
        under subsection (a).

                             
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