[House Report 111-92]
[From the U.S. Government Publishing Office]
111th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 111-92
======================================================================
PROVIDING FOR FURTHER CONSIDERATION OF THE BILL (H.R. 627) TO AMEND THE
TRUTH IN LENDING ACT TO ESTABLISH FAIR AND TRANSPARENT PRACTICES
RELATING TO THE EXTENSION OF CREDIT UNDER AN OPEN END CONSUMER CREDIT
PLAN, AND FOR OTHER PURPOSES
_______
April 29, 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. 379]
The Committee on Rules, having had under consideration
House Resolution 379, 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 further consideration of H.R.
627, the ``Credit Cardholders' Bill of Rights Act of 2009,''
under a structured rule. The resolution provides that no
general debate shall be in order pursuant to this resolution.
The rule provides that the amendment in the nature of a
substitute recommended by the Committee on Financial Services
now printed in the bill shall be considered as an original bill
for the purpose of amendment and shall be considered as read.
The rule waives all points of order against the amendment in
the nature of a substitute except for clause 10 of rule XXI.
This waiver does not affect the point of order available under
clause 9 of rule XXI (regarding earmark disclosure).
The rule makes in order only those amendments printed in
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 except for clauses 9 and 10 of rule XXI are
waived. The rule provides one motion to recommit with or
without instructions.
EXPLANATION OF WAIVERS
Although the rule waives all points of order against the
amendment in the nature of a substitute (except for clause 10
of rule XXI), the Committee is not aware of any points of
order. The waiver of all points of order is prophylactic.
COMMITTEE VOTES
The results of each record vote on an amendment or motion
to report, together with the names of those voting for and
against, are printed below:
Rules Committee record vote No. 78
Date: April 29, 2009.
Measure: H.R. 627.
Motion by: Mr. Dreier.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Sessions (TX), #2, which would
amend the Emergency Economic Stabilization Act to prohibit the
Treasury Department from using TARP funds to purchase common
stock in financial companies.
Results: Defeated 3-7.
Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay;
Arcuri--Nay; Perlmutter--Nay; Pingree--Nay; Dreier--Yea;
Sessions--Yea; Foxx--Yea; Slaughter--Nay.
Rules Committee record vote No. 79
Date: April 29, 2009.
Measure: H.R. 627.
Motion by: Mr. Sessions.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Price, Tom (GA), #1, which
would prevent class action lawsuits from being brought against
an issuer under the legislation.
Results: Defeated 3-7.
Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay;
Arcuri--Nay; Perlmutter--Nay; Pingree--Nay; Dreier--Yea;
Sessions--Yea; Foxx--Yea; Slaughter--Nay.
SUMMARY OF AMENDMENTS TO BE MADE IN ORDER
1. Gutierrez (IL) Would allow issuers to charge consumers
for expedited payments by telephone when consumers request such
an expedited payment, and would make technical corrections;
would require that all credit card offers notify prospective
applicants that excessive credit applications can adversely
affect their credit rating; would direct the Board of Governors
of the Federal Reserve to suggest appropriate guidelines for
creditors to supply cardholders with information regarding the
availability of legitimate and accredited credit counseling
services; would require all written information, provisions,
and terms in or on any application, solicitation, contract, or
agreement for any credit card account under an open end
consumer credit to appear in no less than 12 point font; and
would require that stores who are self-issuers of credit cards
display a large visible sign at counters with the same
information that is required to be disclosed on the application
itself. (20 minutes)
2. Frank (MA) Would require the Federal Reserve 1) to
review the consumer credit card market, including through
solicitation of public comment, and report to Congress every
two years; 2) publish a summary of this review in the Federal
Register, along with proposed regulatory changes (or an
explanation for why no such changes are proposed). The
amendment also requires the Federal banking agencies and the
FTC to submit to the Federal Reserve, for inclusion in the
Federal Reserve's annual report to Congress, information about
the agencies' supervisory and enforcement activities related to
credit card issuers' compliance with consumer protection laws.
(10 minutes)
3. Slaughter (NY)/Duncan (TN)/Alcee Hastings (FL)/Johnson
(GA)/Christensen (VI) Would set underwriting standards for
students' credit cards, including limiting credit lines to the
greater of 20 percent of a student's annual income or $500,
without a co-signer and requiring creditors to obtain a proof
of income, income history, and credit history from college
students before approving credit applications. (10 minutes)
4. Gutierrez (IL)/Gary Peters (MI)/Donna Edwards (MD) Would
require credit card issuers to allocate payments in excess of
the minimum payment to the portion of the remaining balance
with the highest outstanding APR first, and then to any
remaining balances in descending order, eliminating the pro
rata option. (10 minutes)
5. Chellie Pingree (ME) Would require the Chair of the
Federal Reserve to submit a report on the level of
implementation of this bill every 90 days until the Chair can
report full industry implementation. (10 minutes)
6. Polis (CO) Would clarify that minors are allowed to have
a credit card in their name on their parent or legal guardian's
account. (10 minutes)
7. Jones (NC) Would require the Federal Reserve Board, in
consultation with the Federal Trade Commission and other
agencies, to establish regulations that would allow estate
administrators to resolve outstanding credit balances in a
timely manner. (10 minutes)
8. Maloney (NY)/Watson (CA) Would require credit
cardholders to opt-into receiving over-the-limit protection on
their credit card in order for a credit card company to charge
an over-the-limit fee. Allows for transactions that go over the
limit to be completed for operational reasons as long as they
are of a de minimis amount, but the credit card company is not
allowed to charge a fee. (10 minutes)
9. Hensarling (TX) Would allow issuers to raise rates on
existing balances if they provide consumers clear notification
90 days in advance, provided that the issuer has previously
specified this ability to consumers in their contract and at
least once every year thereafter. (10 minutes)
10. Hensarling (TX) Would allow creditors to use
retroactive rate increases, universal default, and `double
cycle billing' practices as long as they offer at least one
card option that does not have those billing features to all of
their existing customers. (10 minutes)
11. Minnick (ID) Would provide that the amount of a balance
as of the 7-day mark, instead of the 14-day mark, following a
notice of a rate increase would be protected from the rate
increase. (10 minutes)
12. David Price (NC)/Brad Miller (NC)/James Moran (VA)/
Quigley (IL)/Lowey (NY)/Stupak (MI)/Sutton (OH) Would require
credit card issuers to provide enhanced disclosure to consumers
regarding minimum payments, including a written Minimum Payment
Warning statement on all monthly statements as well as
information regarding the monthly payment amount and total cost
that would be required for the consumer to eliminate the
outstanding balance in 12, 24 and 36. Would require credit card
issuers to provide a toll-free telephone number at which the
consumer may receive information about accessing credit
counseling and debt management services. (10 minutes)
13. Susan Davis (CA)/Carney (PA) Would require card issuers
to notify cardholders 30 days before closing their accounts,
the reason for the account closure, options to keep the account
open, programs available to repay the balance, and the
resulting impact on their credit score. (10 minutes)
14. Perriello (VA) Would require a 6-month period for a
promotional rate for credit cards before the standard rate may
be increased. (10 minutes)
15. Schauer (MI) Would require creditors to post their
credit card written agreements on their websites, and requires
the Board to compile and report those agreements on its
website. (10 minutes)
16. Harry Teague (NM)/Nye (VA)/Boccieri (OH)/Larry Kissell
(NC) Would restrict credit card issuers from making adverse
reports to credit rating agencies regarding deployed military
service members and disabled veterans during the first two
years of their disability. (10 minutes)
17. Schock (IL) Would allow consumers who have not
activated an issued credit card within 45 days, to contact the
issuing institution to cancel the card and have it removed from
their credit report entirely. If after 45 days the card has not
been activated it is automatically removed from any such
report. (10 minutes)
TEXT OF AMENDMENTS TO BE MADE IN ORDER
1. An Amendment To Be Offered by Representative Gutierrez of Illinois,
or His Designee, Debatable for 20 Minutes
At the end of section 3, insert the following new subsection:
(i) Availability of Legitimate and Accredited Credit
Counseling.--The Board of Governors of the Federal Reserve
System shall suggest appropriate guidelines for creditors to
follow with respect to credit card accounts under open end
consumer credit plans to supply consumer cardholders with
information regarding the availability of legitimate and
accredited credit counseling services.
Strike section 8 of the bill and insert the following new
sections (and redesignate succeeding sections accordingly):
SEC. 8. PROHIBIT FEES FOR PAYMENT ON CREDIT CARD ACCOUNTS BY TELEPHONE
OR ELECTRONIC FUND TRANSFERS.
Section 164 of the Truth in Lending Act (15 U.S.C. 1666c) is
amended--
(1) by striking ``Payments received'' and inserting
``(a) In General.--Payments received''; and
(2) by adding at the end the following new
subsection:
``(b) Payment Fees.--
``(1) Prohibition on fee based on mode of payment.--
Except as provided in paragraph (2), in the case of a
credit card account under an open end consumer credit
plan, a creditor may not impose a fee on the obligor
based on the particular manner in which the obligor
makes a payment on such account.
``(2) Exception.--If the obligor requests to make an
expedited payment on a credit card account under an
open end consumer credit plan by telephone on the date
that a payment is due, or the day immediately preceding
such date, the creditor may assess a fee for crediting
the payment to the obligor's account on or by such
date.''.
SEC. 9. SOLICITATIONS REQUIRED TO INCLUDE WARNING ON ADVERSE EFFECTS OF
EXCESSIVE CREDIT INQUIRIES.
Section 127(c)(1)(B) of the Truth in Lending Act (15 U.S.C.
1637(c)(1)(B)) is amended by adding at the end the following
new clause:
``(iv) Excessive credit inquiries.--A
warning that excessive credit
inquiries, which occur in connection
with credit applications and
solicitations and under other
circumstances, can have an adverse
effect on a consumer credit score.''.
SEC. 10. READABILITY REQUIREMENT.
Section 122 of the Truth in Lending Act (U.S.C. 1632) is
amended by adding at the end the following new subsection:
``(d) Minimum Type-Size and Font Requirement for Credit Card
Applications and Disclosures.--All written information,
provisions, and terms in or on any application, solicitation,
contract, or agreement for any credit card account under an
open end consumer credit plan, and all written information
included in or on any disclosure required under this chapter
with respect to any such account, shall appear--
``(1) in not less than 12-point type; and
``(2) in any font other than a font which the Board
has designated, in regulations under this section, as a
font that inhibits readability.''.
Insert at the end the following new section:
SEC. 13. DISCLOSURE REQUIREMENT FOR STORES ACCEPTING CREDIT CARD
ACCOUNT APPLICATIONS.
(a) In General.--Section 122 of the Truth in Lending Act (15
U.S.C. 1632) is amended by adding at the end the following:
``(d) Signs Required on Certain Premises Where Credit Card
Account Applications Accepted.--
``(1) In general.--A person who sells personal
property to consumers on a business premises and makes
available to consumers on such premises any application
to open a credit card account under an open end
consumer credit plan, and where such person is the
issuer of such account, shall display in the premises
on a sign any information that is subject to subsection
(c) and that is required to be disclosed by the person
on that application.
``(2) Format.--Such information shall be displayed on
the sign in the form and manner which the Board shall
prescribe by regulations and which, to the extent
practicable and appropriate, shall be consistent with
the form and manner required for the disclosure of such
information on the credit card application.
``(3) Sign placement.--Such signs shall be
conspicuously placed at each location on the premises
where the credit card application may be submitted by
the consumer.''.
(b) Conforming Amendment.--Section 111(e) of the Truth in
Lending Act (15 U.S.C. 1610(e)) is amended by adding at the end
the following:
``Section 122(d) shall supersede State laws relating to store
display of the information that is subject to the requirements
of such section, except that any State may employ or establish
State laws for the purpose of enforcing the requirements of
such section.''.
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2. An Amendment To Be Offered by Representative Frank of Massachusetts,
or His Designee, Debatable for 10 Minutes
After section 8, insert the following new section (and
redesignate subsequent sections accordingly):
SEC. 9. BOARD REVIEW OF CONSUMER CREDIT PLANS AND REGULATIONS.
(a) Required Review.--Not later than 2 years after the
effective date of this Act and every 2 years thereafter, except
as provided in subsection (c)(2), the Board shall conduct a
review, within the limits of its existing resources available
for reporting purposes, of the consumer credit card market
including--
(1) the terms of credit card agreements and the
practices of credit card issuers;
(2) the effectiveness of disclosure of terms, fees,
and other expense of credit card plans;
(3) the adequacy of protections against unfair or
deceptive acts or practices relating to credit card
plans, and
(4) whether or not, and to what extent, the Credit
Cardholders' Bill of Rights Act of 2009 has resulted
in--
(A) higher annual percentage rates of
interest, on average, for credit card users
than the average of such rates of interest in
effect before the effective date of the Act;
(B) the imposition of annual fees or other
credit card fees--
(i) that did not exist before such
effective date;
(ii) at a higher average rate of
applicability than existed before such
effective date; or
(iii) with higher average costs to
the consumer than were in effect before
such effective date;
(C) an increase in the rate of denial of--
(i) new credit card accounts for
consumers; or
(ii) new extensions of credit, or
additional lines of credit, for
existing credit accounts established
before such effective date; or
(D) any other adverse or negative condition
or effect on consumers.
(b) Solicitation of Public Comment.--In connection with
conducting the review required by subsection (a), the Board
shall solicit comment from consumers, credit card issuers, and
other interested parties, such as through hearings or written
comments.
(c) Regulations.--
(1) Notice.--Following the review required by
subsection (a) the Board shall publish a notice in the
Federal Register that--
(A) summarizes the review, the comments
received from the public solicitation, and
other evidence gathered by the Board such as
through consumer testing or other research; and
(B) either--
(i) proposes new or revised
regulations or interpretations to
update or revise disclosures and
protections for consumer credit cards
as appropriate; or
(ii) states the reason for the
Board's determination that new or
revised regulations are not proposed.
(2) Revision of review period following material
revision of regulations.--In the event the Board
materially revises regulations on consumer credit card
plans, a review need not be conducted until 2 years
following the effective date of the revised
regulations, which thereafter shall become the new date
for the biennial review required by subsection (a).
(d) Board Report to the Congress.--The Board shall report to
the Congress no less frequently than every 2 years, except as
provided in subsection (c)(2), on the status of its most recent
review, its efforts to address any issues identified from the
review, and any recommendations for legislation.
(e) Additional Reporting.--The Federal banking agencies and
the Federal Trade Commission shall provide annually to the
Board, and the Board shall include in its annual report to
Congress under section 10 of the Federal Reserve Act,
information about the supervisory and enforcement activities of
the agencies with respect to credit card issuers' compliance
with applicable Federal consumer protection statutes and
regulations including--
(1) this Act, the amendments made by this Act, and
regulations prescribed under this Act and such
amendments; and
(2) section 5 of the Federal Trade Commission Act,
and regulations prescribed under the Federal Trade
Commission Act, such as part 227 of title 12 of the
Code of Federal Regulations as prescribed by the Board
(Regulation AA).
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3. An Amendment To Be Offered by Representative Slaughter of New York,
or Her Designee, Debatable for 10 Minutes
In that portion of section 7 that precedes the amendment
adding a new paragraph (8), strike ``paragraph'' and insert
``paragraphs''.
At the end of the paragraph (8) added by the amendment made
by section 7, strike the closing quotation marks and the 2nd
period.
After paragraph (8) of section 127(c) of the Truth in Lending
Act (as added by the amendment made by section 7), insert the
following new paragraph:
``(9) Provisions applicable with regard to the
issuance of credit cards to full-time, traditional-aged
college students.--
``(A) Definitions.--For purposes of this
paragraph, the following definitions shall
apply:
``(i) College student credit card
account defined.--The term `college
student credit card account' means a
credit card account under an open end
consumer credit plan established or
maintained for or on behalf of any
college student.
``(ii) College student.--The term
`college student' means an individual--
``(I) who is a full-time
student attending an
institution of higher
education; and
``(II) who has attained the
age of 18 and has not yet
attained the age of 21.
``(iii) Institution of higher
education.--The term `institution of
higher education' has the same meaning
as in section 101(a) of the Higher
Education Act of 1965 (20 U.S.C.
1001(a)).
``(B) Maximum amount limitation as a
percentage of gross income.--Unless a parent,
legal guardian, or spouse of a college student
assumes joint liability for debts incurred by
the student in connection with a college
student credit card account--
``(i) the amount of credit which may
be extended by any one creditor to the
full-time college student may not
exceed, during any full calendar year,
the greater of--
``(I) 20 percent of the
annual gross income of the
student; or
``(II) $500; and
``(ii) no creditor shall grant a
student a credit card account, if the
credit limit for that credit card
account, combined with the credit
limits of any other credit card
accounts held by the student, would
exceed 30 percent of the annual gross
income of the student in the most
recently completed calendar year.
``(C) Parental approval required to increase
credit lines for accounts for which parent is
jointly liable.--No increase may be made in the
amount of credit authorized to be extended
under a college student credit card account for
which a parent, legal guardian, or spouse of
the consumer has assumed joint liability for
debts incurred by the consumer in connection
with the account, before the consumer attains
the age of 21, with respect to such consumer,
unless the parent, guardian, or spouse of the
consumer, as applicable, approves in writing,
and assumes joint liability for, such increase.
``(D) Income verification.--For purposes of
this paragraph, a creditor shall require
adequate proof of income, income history, and
credit history, subject to the rules of the
Board, before any college student credit card
account may be opened by or on behalf of a
student.
``(E) Prohibition on more than 1 credit card
account for any college student.--No creditor
may open a credit card account for, or issue
any credit card to, any college student who--
``(i) has no verifiable annual gross
income; and
``(ii) already maintains a credit
card account under an open end consumer
credit plan with that creditor, or any
affiliate thereof.
``(F) Exemption authority.--The Board may, by
rule, provide for exemptions to the provisions
of this paragraph, as deemed necessary or
appropriate by the Board, consistent with the
purposes of this paragraph.''.
----------
4. An Amendment To Be Offered by Representative Gutierrez of Illinois,
or His Designee, Debatable for 10 Minutes
In paragraph (1) of subsection (j) of section 127B of the
Truth in Lending Act (as added by section 3(f) of the bill)
strike ``minimum payment shall be applied'', where such term
appears in the matter preceding subparagraph (A), and all that
follows through the end of subparagraph (B) of such paragraph
and insert ``minimum payment shall be allocated first to the
balance with the highest annual percentage rate and any
remaining portion is allocated to any other balance in
descending order, based on the applicable annual percentage
rate each portion of such balance bears, from the highest such
rate to the lowest''.
----------
5. An Amendment To Be Offered by Representative Pingree of Maine, or
Her Designee, Debatable for 10 Minutes
After section 9, insert the following new section (and
redesignate the subsequent section accordingly):
SEC. 10. INTERIM IMPLEMENTATION REPORTS TO THE CONGRESS.
The Chairman of the Board of Governors of the Federal Reserve
System shall submit a report each 90 days after the date of the
enactment of this Act on the level of implementation of the
regulations required to be prescribed under this Act to the
Committee on Financial Services of the House of Representatives
and the Committee on Banking, Housing, and Urban Affairs of the
Senate until the Chairman can report full industry
implementation
----------
6. An Amendment To Be Offered by Representative Polis of Colorado, or
His Designee, Debatable for 10 Minutes
In subparagraph (A) of the new paragraph (8) added to section
127(c) of the Truth in Lending Act by section 7 of the bill,
insert ``or the parent or legal guardian of such consumer is
designated as the primary account holder'' before the period at
the end.
----------
7. An Amendment To Be Offered by Representative Jones of North
Carolina, or His Designee, Debatable for 10 Minutes
After section 9, insert the following new section (and
redesignate the subsequent sections accordingly):
SEC. 9. PROCEDURE FOR TIMELY SETTLEMENTS OF DECEDENT OBLIGORS' ESTATES.
(a) In General.--Chapter 2 of the Truth in Lending Act (
U.S.C. 1631 et seq.) is amended by adding at the end the
following new section:
``Sec. 140A Procedure for timely settlements of decedent obligors'
estates
``The Board, in consultation with the Federal Trade
Commission and each other agency referred to in section 108(a),
shall prescribe regulations to require any creditor, with
respect to any credit card account under an open end consumer
credit plan, to establish procedures to ensure that any
administrator of an estate of any deceased obligor with respect
to such account can resolve outstanding credit balances in a
timely manner.''.
(b) Clerical Amendment.--The table of sections for chapter 2
of the Truth in Lending Act is amended by inserting after the
item relating to section 140 the following new item:
``140A. Procedure for timely settlements of decedent obligors'
estates.''.
____________________________________________________
8. An Amendment To Be Offered by Representative Maloney of New York, or
Her Designee, Debatable for 10 Minutes
Strike out subsection (m) of section 127B of the Truth in
Lending Act (as added by section 4 of the bill) and insert the
following new subsection:
``(m) Opt-in Required for Over-the-Limit Transactions if Fees
Are Imposed.--
``(1) In general.--In the case of any credit card
account under an open end consumer credit plan under
which an over-the-limit-fee may be imposed by the
creditor for any extension of credit in excess of the
amount of credit authorized to be extended under such
account, no such fee shall be charged unless the
consumer has elected to permit the creditor, with
respect to such account, to complete transactions
involving the extension of credit, with respect to such
account, in excess of the amount of credit authorized.
``(2) Disclosure by creditor.--No election by a
consumer under paragraph (1) shall take effect unless
the consumer, before making such election, received a
notice from the creditor of any over-the-limit fee in
the form and manner, and at the time, determined by the
Board.
``(3) Form of election.--A consumer may make the
election referred to in paragraph (1) orally or in
writing.
``(4) Time of election.--A consumer may make the
election referred to in paragraph (1) at any time and
it shall be effective until the election is revoked by
the consumer orally or in writing.
``(5) Regulations.--
``(A) In general.--The Board shall issue
regulations allowing for the completion of
over-the-limit transactions that for
operational reasons exceed the credit limit by
a de minimis amount, even where the cardholder
has not made an election under paragraph (1).
``(B) Subject to no fee limitation.--The
regulations prescribed under subparagraph (A)
shall not allow for the imposition of any fee
or any rate increase based on the permitted
over-the-limit transactions with respect to the
account of any cardholder who has not made the
election in paragraph (1).
``(C) Disclosures.--The Board shall prescribe
regulations governing any disclosure under this
subsection.''.
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9. An Amendment To Be Offered by Representative Hensarling of Texas, or
His Designee, Debatable for 10 Minutes
In subsection (b) of section 127B of the Truth in Lending Act
(as added by section 2(b) of the bill), insert after
subparagraph (D) the following new subparagraph:
``(E) Transparent advanced notice of rate
increase.--Notification of the increase is
provided to the consumer in writing, in clear
and conspicuous language, at least 90 days
before the increase is scheduled to take
effect, provided that the applicability of this
exception is fully described to the consumer in
their contract and at least once annually
thereafter, in a clear and conspicuous
manner.''.
----------
10. An Amendment To Be Offered by Representative Hensarling of Texas,
or His Designee, Debatable for 10 Minutes
In subsection (b) of section 127B of the Truth in Lending Act
(as added by section 2(b) of the bill), insert the following
new paragraph after paragraph (1) (and redesignate the
subsequent paragraphs accordingly):
``(2) Nonapplicability to certain creditors who make
available alternative card options.--The limitations on
retroactive rate increases and universal default shall
not apply to any creditor that offers a credit card
account to consumers under an open end consumer credit
plan to the extent such creditor--
``(A) makes at least 1 credit card option
available to 100 percent of the creditor's
existing consumers that does not feature
retroactive rate increases or universal default
billing practice; and
``(B) provides clear and conspicuous notice
of the availability of a credit card option
referred to in subparagraph (A) to the consumer
customers of such creditor at least once
annually.''.
In subsection (e) of section 127B of the Truth in Lending Act
(as added by section 3(a) of the bill), insert after paragraph
(3) the following new paragraph:
``(4) Nonapplicability to certain creditors who make
available alternative card options.--The limitation on
double cycle billing shall not apply to any creditor
that offers a credit card account to consumers under an
open end consumer credit plan to the extent such
creditor--
``(A) makes at least 1 credit card option
available to 100 percent of the creditor's
existing consumers that does not feature double
cycle billing; and
``(B) provides clear and conspicuous notice
of the availability of a credit card option
referred to in subparagraph (A) to the consumer
customers of such creditor at least once
annually.''.
----------
11. An Amendment To Be Offered by Representative Minnick of Idaho, or
His Designee, Debatable for 10 Minutes
In paragraph (2) of section 127B(a) of the Truth in Lending
Act (as added by section 2(a) of the bill), strike ``14th'' and
insert ``7th''.
----------
12. An Amendment To Be Offered by Representative David Price of North
Carolina, or His Designee, Debatable for 10 Minutes
After section 8, insert the following new section (and
redesignate subsequent sections accordingly):
SEC. 9. ENHANCED MINIMUM PAYMENT DISCLOSURES.
Paragraph (11) of section 127(b) of the Truth in Lending Act
(15 U.S.C. 1637(b)(11)) is amended to read as follows:
``(11) Minimum payment disclosures.--
``(A) Minimum payment warning.--A written
statement in the following form: `Minimum
Payment Warning: Making only the minimum
payment will increase the interest you pay and
the time it takes to repay your balance.'.
``(B) Information on outstanding balance.--
Not less than once per calendar quarter, such
billing statement shall also include repayment
information that would apply to the outstanding
balance of the consumer under the credit plan,
including--
``(i) the number of months (rounded
to the nearest month) that it would
take to pay the entire amount of that
balance, if the consumer pays only the
required minimum monthly payments and
if no further advances are made;
``(ii) the total cost to the
consumer, including interest payments,
of paying that balance in full, if the
consumer pays only the required minimum
monthly payments and if no further
advances are made;
``(iii) the monthly payment amount
that would be required for the consumer
to eliminate the outstanding balance in
12 months, 24 months, and 36 months, if
no further advances are made, and the
total cost to the consumer, including
interest and principal payments, of
paying that balance in full if the
consumer pays the balance over 12, 24,
or 36 months, respectively; and
``(iv) a toll-free telephone number
at which the consumer may receive
information about accessing credit
counseling and debt management
services.
``(C) Exception to requirements of subsection
(b).--The quarterly disclosure requirements in
subsection (B) shall not apply with respect
to--
``(i) a calendar quarter if, in the 2
consecutive billing cycles preceding
the end of such quarter, a consumer has
paid the entire balance of the bill in
full;
``(ii) a calendar quarter if, at the
end of the calendar quarter, a consumer
has an outstanding credit balance of
zero or has a positive credit; or
``(iii) any class of consumers for
which the Board has determined will not
benefit substantially from additional
disclosures.
``(D) Applicable rates to be used in
disclosures.--
``(i) In general.--Subject to clause
(ii), in making the disclosures under
subparagraph (B), the creditor shall
apply the interest rate or rates in
effect on the date on which the
disclosure is made until the date on
which the balance would be paid in
full.
``(ii) Special rule in case of
temporary rate.--If the interest rate
in effect on the date on which the
disclosure is made is a temporary rate
that will change under a contractual
provision applying an index or formula
for subsequent interest rate
adjustment, the creditor shall apply
the interest rate in effect on the date
on which the disclosure is made for as
long as that interest rate will apply
under that contractual provision, and
then apply an interest rate based on
the index or formula in effect on the
applicable billing date.
``(E) Form and prominence of disclosure.--All
of the information described in subparagraph
(B) shall--
``(i) be disclosed in the form and
manner which the Board shall prescribe,
by regulation, and in a manner that
avoids duplication; and
``(ii) be placed in a conspicuous and
prominent location on the billing
statement in conspicuous typeface.
``(F) Tabular format.--In the regulations
prescribed under subparagraph (D), the Board
shall require that the disclosure of such
information shall be in the form of a table
that--
``(i) contains clear and concise
headings for each item of such
information; and
``(ii) provides a clear and concise
form stating each item of information
required to be disclosed under each
such heading.
``(G) Location and order of table.--In
prescribing the form of the table under
subparagraph (E), the Board shall require
that--
``(i) all of the information in the
table, and not just a reference to the
table, be placed on the billing
statement, as required by this
paragraph; and
``(ii) the items required to be
included in the table shall be listed
in the order in which such items are
described in subparagraph (B).
``(H) Substitution of terminology.--In
prescribing the form of the table under
subparagraph (D), the Board may employ
terminology which is different than the
terminology used in subparagraph (B), if such
terminology is more easily understood and
conveys substantially the same meaning.
``(I) `Rounding' regulations.--For purposes
of determining whether an error in the
disclosures required by subparagraph (B)
constitutes a legal cause of action against a
creditor or any other party, the standard
referred to under the heading `Rounding assumed
payments, current balance and interest charges
to the nearest cent' in the publication by the
Board in the Federal Register (74 F.R. 5385) on
January 29, 2009, of the final regulation
revising part 226 of title 12 of the Code of
Federal Regulations (Regulation Z), or a
standard that affords substantially similar
protections as determined by the Board, shall
apply for purposes of the determination with
regard to such disclosures.''.
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13. An Amendment To Be Offered by Representative Susan Davis of
California, or Her Designee, Debatable for 10 Minutes
Insert after section 127B(c) of the Truth in Lending Act (as
added by section 2(c) of the bill) the following new subsection
(and redesignate succeeding subsections accordingly):
``(d) Advance Notice of Account Closure.--
``(1) In general.--In the case of any credit card
account under an open end consumer credit plan, a
creditor may not close such account unless the creditor
provides a written notice to the consumer at least 30
days before the closure takes place, and which notifies
the consumer--
``(A) of the reason the account is being
closed;
``(B) of any recourse that the consumer may
take to prevent the account from being closed;
``(C) of any program under which the consumer
may repay the balance on the account over a
period of time; and
``(D) that if the consumer's account is
closed, it may have an impact on the consumer's
credit score.
``(2) Exception.--The requirements of paragraph (1)
shall not apply in the case of a consumer request that
the creditor close such account.''.
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14. An Amendment To Be Offered by Representative Perriello of Virginia,
or His Designee, Debatable for 10 Minutes
In subsection (c) of section 127B of the Truth in Lending Act
(as added by section 2(c) of the bill) insert after paragraph
(2) the following new paragraph:
(3) Minimum term for promotional rates.--In the case
of a promotional rate, no written notice under
paragraph (1) of an increase in any annual percentage
rate of interest on any credit card account under an
open end consumer credit plan shall be effective before
the end of a 6-month period beginning from the date the
promotional rate takes effect.
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15. An Amendment To Be Offered by Representative Schauer of Michigan,
or His Designee, Debatable for 10 Minutes
After section 8, insert the following new section (and
redesignate the subsequent sections accordingly):
SEC. 9. POSTING INFORMATION ON THE INTERNET.
Section 122 of the Truth in Lending Act ( U.S.C. 1632) is
amended by adding at the end the following new subsection:
``(d) Internet Posting of Credit Card Agreements.----
``(1) Posting agreements.--A creditor shall establish
and maintain an Internet site on which the creditor
will post the written agreement between the creditor
and the consumer for each open-end consumer credit plan
not secured by a dwelling that has a credit card
feature.
``(2) Providing copy of contracts to the board.--A
creditor shall provide to the Board in electronic
format, the consumer credit card agreements that the
creditor publishes on the creditor's Internet site.
``(3) Record repository.--The Board shall establish
and maintain on its publically available Internet site
a central repository of the consumer credit card
agreements received from the creditors pursuant to this
subsection and such agreements shall be easily
accessible and retrievable.
``(4) Exception.--Paragraphs (1) and (2) shall not
apply to individually negotiated changes to contractual
terms, such as individually-modified workouts or
renegotiations of amounts owed by a consumer under an
open end consumer credit plan.
``(5) Regulations.--The Board, in consultation with
the other agencies described in section 108 and the
Federal Trade Commission, may prescribe regulations to
implement this subsection, including----
``(A) specifying the format for posting the
agreements on the creditor's Internet site; and
``(B) establishing exceptions to paragraphs
(1) and (2) in cases where the administrative
burden outweighs the benefit of increased
transparency, such as where a credit card plan
has a de minimis number of consumer account
holders''.
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16. An Amendment To Be Offered by Representative Teague of New Mexico,
or His Designee, Debatable for 10 Minutes
After section 8, insert the following new section (and
redesignate subsequent sections accordingly):
SEC. 9. REGULATIONS RELATING TO ACTIVE DUTY MILITARY CONSUMERS AND
RECENTLY DISABLED VETERANS.
Section 127B of the Truth in Lending Act is amended by
inserting after subsection (p) (as added by section 6) the
following new subsection:
``(q) Regulations Relating to Active Duty Military Consumers
and Recently Disabled Veterans.--In the case of any credit card
account, under an open end consumer credit plan, held by any
veteran receiving compensation for a service-connected
disability (as such terms are defined in section 101 of title
38, United States Code) that occurred less than 2 years before
or any active duty military consumer (as defined in section
603(q)(2) of this Act), the Board shall prescribe regulations
that prohibits the creditor with respect to such account from
making adverse reports to any consumer reporting agency with
respect while the consumer maintains status as such a veteran
or as an active duty military consumer.''.
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17. An Amendment To Be Offered by Representative Schock of Illinois, or
His Desginee, Debatable for 10 Minutes
In the subsection heading for section 3(d), strike ``Before''
and insert ``After''.
In the subsection heading of subsection (h) of section 127B
of the Truth in Lending Act (as added by section 3(d)), strike
``Before'' and insert ``After''.
In paragraph (1) of section 127B(h) of the Truth in Lending
Act (as added by section 3(d))----
(1) strike ``may not furnish any information to'' and
insert ``shall remove any information furnished to'';
and
(2) strike ``until the credit card has been used or
activated by the consumer'' and insert ``if the
consumer has not used or activated the account and the
consumer contacts the creditor within 45 days of the
establishment of the account to close the account''.