[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.''.
                              ----------                              


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).
                              ----------                              


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.''.
                              ----------                              


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.''.
                              ----------                              


    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.''.
                              ----------                              


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.
                              ----------                              


 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''.
                              ----------                              


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.''.
                              ----------                              


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''.

                                  
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