Text: H.R.627 — 111th Congress (2009-2010)All Information (Except Text)

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Public Law No: 111-24 (05/22/2009)

 
[111th Congress Public Law 24]
[From the U.S. Government Printing Office]



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  CREDIT CARD ACCOUNTABILITY RESPONSIBILITY AND DISCLOSURE ACT OF 2009

[[Page 123 STAT. 1734]]

Public Law 111-24
111th Congress

                                 An Act


 
  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. <<NOTE: May 22, 2009 -  [H.R. 
                                 627]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Credit Card 
Accountability Responsibility and Disclosure Act of 2009.>> 
SECTION 1. <<NOTE: 15 USC 1601 note.>> SHORT TITLE; TABLE OF 
                              CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Credit Card 
Accountability Responsibility and Disclosure Act of 2009'' or the 
``Credit CARD Act of 2009''.
    (b) Table of Contents.--
            The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Regulatory authority.
Sec. 3. Effective date.

                      TITLE I--CONSUMER PROTECTION

Sec. 101. Protection of credit cardholders.
Sec. 102. Limits on fees and interest charges.
Sec. 103. Use of terms clarified.
Sec. 104. Application of card payments.
Sec. 105. Standards applicable to initial issuance of subprime or ``fee 
           harvester'' cards.
Sec. 106. Rules regarding periodic statements.
Sec. 107. Enhanced penalties.
Sec. 108. Clerical amendments.
Sec. 109. Consideration of Ability to repay.

                 TITLE II--ENHANCED CONSUMER DISCLOSURES

Sec. 201. Payoff timing disclosures.
Sec. 202. Requirements relating to late payment deadlines and penalties.
Sec. 203. Renewal disclosures.
Sec. 204. Internet posting of credit card agreements.
Sec. 205. Prevention of deceptive marketing of credit reports.

                TITLE III--PROTECTION OF YOUNG CONSUMERS

Sec. 301. Extensions of credit to underage consumers.
Sec. 302. Protection of young consumers from prescreened credit offers.
Sec. 303. Issuance of credit cards to certain college students.
Sec. 304. Privacy Protections for college students.
Sec. 305. College Credit Card Agreements.

                          TITLE IV--GIFT CARDS

Sec. 401. General-use prepaid cards, gift certificates, and store gift 
           cards.
Sec. 402. Relation to State laws.
Sec. 403. Effective date.

                    TITLE V--MISCELLANEOUS PROVISIONS

Sec. 501. Study and report on interchange fees.
Sec. 502. Board review of consumer credit plans and regulations.

[[Page 123 STAT. 1735]]

Sec. 503. Stored value.
Sec. 504 Procedure for timely settlement of estates of decedent 
           obligors.
Sec. 505. Report to Congress on reductions of consumer credit card 
           limits based on certain information as to experience or 
           transactions of the consumer.
Sec. 506. Board review of small business credit plans and 
           recommendations.
Sec. 507. Small business information security task force.
Sec. 508. Study and report on emergency pin technology.
Sec. 509. Study and report on the marketing of products with credit 
           offers.
Sec. 510. Financial and economic literacy.
Sec. 511. Federal trade commission rulemaking on mortgage lending.
Sec. 512. Protecting Americans from violent crime.
Sec. 513. GAO study and report on fluency in the English language and 
           financial literacy.

SEC. 2. <<NOTE: 15 USC 1602 note.>> REGULATORY AUTHORITY.

    The Board of Governors of the Federal Reserve System (in this Act 
referred to as the ``Board'') may issue such rules and publish such 
model forms as it considers necessary to carry out this Act and the 
amendments made by this Act.
SEC. 3. <<NOTE: 15 USC 1602 note.>> EFFECTIVE DATE.

    This Act and the amendments made by this Act shall become effective 
9 months after the date of enactment of this Act, except as otherwise 
specifically provided in this Act.

                      TITLE I--CONSUMER PROTECTION

SEC. 101. PROTECTION OF CREDIT CARDHOLDERS.

    (a) Advance Notice of Rate Increase and Other Changes Required.--
            (1) Amendment to tila.--Section 127 of the Truth in Lending 
        Act (15 U.S.C. 1637) is amended by adding at the end the 
        following:

    ``(i) Advance Notice of Rate Increase and Other Changes Required.--
            ``(1) Advance notice of increase in interest rate 
        required.--In <<NOTE: Deadline.>> the case of any credit card 
        account under an open end consumer credit plan, a creditor shall 
        provide a written notice of an increase in an annual percentage 
        rate (except in the case of an increase described in paragraph 
        (1), (2), or (3) of section 171(b)) not later than 45 days prior 
        to the effective date of the increase.
            ``(2) Advance notice of other significant changes 
        required.--In <<NOTE: Deadline.>> the case of any credit card 
        account under an open end consumer credit plan, a creditor shall 
        provide a written notice of any significant change, as 
        determined by rule of the Board, in the terms (including an 
        increase in any fee or finance charge, other than as provided in 
        paragraph (1)) of the cardholder agreement between the creditor 
        and the obligor, not later than 45 days prior to the effective 
        date of the change.
            ``(3) Notice of right to cancel.--Each notice required by 
        paragraph (1) or (2) shall be made in a clear and conspicuous 
        manner, and shall contain a brief statement of the right of the 
        obligor to cancel the account pursuant to rules established by 
        the Board before the effective date of the subject rate increase 
        or other change.
            ``(4) Rule of construction.--Closure or cancellation of an 
        account by the obligor shall not constitute a default under

[[Page 123 STAT. 1736]]

        an existing cardholder agreement, and shall not trigger an 
        obligation to immediately repay the obligation in full or 
        through a method that is less beneficial to the obligor than one 
        of the methods described in section 171(c)(2), or the imposition 
        of any other penalty or fee.''.
            (2) Effective <<NOTE: 15 USC 1637 note.>> date.--
        Notwithstanding section 3, section 127(i) of the Truth in 
        Lending Act, as added by this subsection, shall become effective 
        90 days after the date of enactment of this Act.

    (b) Retroactive Increase and Universal Default Prohibited.--Chapter 
4 of the Truth in Lending Act (15 U.S.C. 1666 et seq.) is amended--
            (1) by redesignating section 171 <<NOTE: 15 USC 1666j.>> as 
        section 173; and
            (2) by inserting after section 170 the following:
``SEC. 171. <<NOTE: 15 USC 1666i-1.>> LIMITS ON INTEREST RATE, 
                        FEE, AND FINANCE CHARGE INCREASES 
                        APPLICABLE TO OUTSTANDING BALANCES.

    ``(a) In General.--In the case of any credit card account under an 
open end consumer credit plan, no creditor may increase any annual 
percentage rate, fee, or finance charge applicable to any outstanding 
balance, except as permitted under subsection (b).
    ``(b) Exceptions.--The prohibition under subsection (a) shall not 
apply to--
            ``(1) an increase in an annual percentage rate upon the 
        expiration of a specified period of time, provided that--
                    ``(A) prior to commencement of that period, the 
                creditor disclosed to the consumer, in a clear and 
                conspicuous manner, the length of the period and the 
                annual percentage rate that would apply after expiration 
                of the period;
                    ``(B) the increased annual percentage rate does not 
                exceed the rate disclosed pursuant to subparagraph (A); 
                and
                    ``(C) the increased annual percentage rate is not 
                applied to transactions that occurred prior to 
                commencement of the period;
            ``(2) an increase in a variable annual percentage rate in 
        accordance with a credit card agreement that provides for 
        changes in the rate according to operation of an index that is 
        not under the control of the creditor and is available to the 
        general public;
            ``(3) an increase due to the completion of a workout or 
        temporary hardship arrangement by the obligor or the failure of 
        the obligor to comply with the terms of a workout or temporary 
        hardship arrangement, provided that--
                    ``(A) the annual percentage rate, fee, or finance 
                charge applicable to a category of transactions 
                following any such increase does not exceed the rate, 
                fee, or finance charge that applied to that category of 
                transactions prior to commencement of the arrangement; 
                and
                    ``(B) the creditor has provided the obligor, prior 
                to the commencement of such arrangement, with clear and 
                conspicuous disclosure of the terms of the arrangement 
                (including any increases due to such completion or 
                failure); or
            ``(4) <<NOTE: Deadlines.>> an increase due solely to the 
        fact that a minimum payment by the obligor has not been received 
        by the creditor

[[Page 123 STAT. 1737]]

        within 60 days after the due date for such payment, provided 
        that the creditor shall--
                    ``(A) include, together with the notice of such 
                increase required under section 127(i), a clear and 
                conspicuous written statement of the reason for the 
                increase and that the increase will terminate not later 
                than 6 months after the date on which it is imposed, if 
                the creditor receives the required minimum payments on 
                time from the obligor during that period; and
                    ``(B) terminate such increase not later than 6 
                months after the date on which it is imposed, if the 
                creditor receives the required minimum payments on time 
                during that period.

    ``(c) Repayment of Outstanding Balance.--
            ``(1) In general.--The creditor shall not change the terms 
        governing the repayment of any outstanding balance, except that 
        the creditor may provide the obligor with one of the methods 
        described in paragraph (2) of repaying any outstanding balance, 
        or a method that is no less beneficial to the obligor than one 
        of those methods.
            ``(2) Methods.--The methods described in this paragraph 
        are--
                    ``(A) an amortization period of not less than 5 
                years, beginning on the effective date of the increase 
                set forth in the notice required under section 127(i); 
                or
                    ``(B) a required minimum periodic payment that 
                includes a percentage of the outstanding balance that is 
                equal to not more than twice the percentage required 
                before the effective date of the increase set forth in 
                the notice required under section 127(i).

    ``(d) Outstanding Balance Defined.--For purposes of this section, 
the term `outstanding balance' means the amount owed on a credit card 
account under an open end consumer credit plan as of the end of the 14th 
day after the date on which the creditor provides notice of an increase 
in the annual percentage rate, fee, or finance charge in accordance with 
section 127(i).''.
    (c) Interest Rate Reduction on Open End Consumer Credit Plans.--
Chapter 3 of the Truth in Lending Act (15 U.S.C. 1661 et seq.) is 
amended by adding at the end the following:
``SEC. 148. <<NOTE: 15 USC 1665c.>> INTEREST RATE REDUCTION ON 
                        OPEN END CONSUMER CREDIT PLANS.

    ``(a) In General.--If a creditor increases the annual percentage 
rate applicable to a credit card account under an open end consumer 
credit plan, based on factors including the credit risk of the obligor, 
market conditions, or other factors, the creditor shall consider changes 
in such factors in subsequently determining whether to reduce the annual 
percentage rate for such obligor.
    ``(b) Requirements.--With respect to any credit card account under 
an open end consumer credit plan, the creditor shall--
            ``(1) maintain reasonable methodologies for assessing the 
        factors described in subsection (a);
            ``(2) <<NOTE: Deadlines. Review.>> not less frequently than 
        once every 6 months, review accounts as to which the annual 
        percentage rate has been increased since January 1, 2009, to 
        assess whether such factors have changed (including whether any 
        risk has declined);

[[Page 123 STAT. 1738]]

            ``(3) reduce the annual percentage rate previously increased 
        when a reduction is indicated by the review; and
            ``(4) in the event of an increase in the annual percentage 
        rate, provide in the written notice required under section 
        127(i) a statement of the reasons for the increase.

    ``(c) Rule of Construction.--This section shall not be construed to 
require a reduction in any specific amount.
    ``(d) Rulemaking.--The <<NOTE: Deadline. Effective date.>> Board 
shall issue final rules not later than 9 months after the date of 
enactment of this section to implement the requirements of and evaluate 
compliance with this section, and subsections (a), (b), and (c) shall 
become effective 15 months after that date of enactment.''.

    (d) Introductory and Promotional Rates.--Chapter 4 of the Truth in 
Lending Act (15 U.S.C. 1666 et seq.) is amended by inserting after 
section 171, as amended by this Act, the following:
``SEC. 172. <<NOTE: Time periods. 15 USC 1666i-2.>> ADDITIONAL 
                        LIMITS ON INTEREST RATE INCREASES.

    ``(a) Limitation on Increases Within First Year.--Except in the case 
of an increase described in paragraph (1), (2), (3), or (4) of section 
171(b), no increase in any annual percentage rate, fee, or finance 
charge on any credit card account under an open end consumer credit plan 
shall be effective before the end of the 1-year period beginning on the 
date on which the account is opened.
    ``(b) Promotional Rate Minimum Term.--No increase in any annual 
percentage rate applicable to a credit card account under an open end 
consumer credit plan that is a promotional rate (as that term is defined 
by the Board) shall be effective before the end of the 6-month period 
beginning on the date on which the promotional rate takes effect, 
subject to such reasonable exceptions as the Board may establish, by 
rule.''.
    (e) Clerical Amendment.--The table of sections for chapter 4 of the 
Truth in Lending Act is amended by striking the item relating to section 
171 and inserting the following:

``171. Limits on interest rate, fee, and finance charge increases 
           applicable to outstanding balances.
``172. Additional limits on interest rate increases.
``173. Applicability of State laws.''.

SEC. 102. LIMITS ON FEES AND INTEREST CHARGES.

    (a) In General.--Section 127 of the Truth in Lending Act (15 U.S.C. 
1637) is amended by adding at the end the following:
    ``(j) Prohibition on Penalties for On-Time Payments.--
            ``(1) Prohibition on double-cycle billing and penalties for 
        on-time payments.--Except as provided in paragraph (2), a 
        creditor may not impose any finance charge on a credit card 
        account under an open end consumer credit plan as a result of 
        the loss of any time period provided by the creditor within 
        which the obligor may repay any portion of the credit extended 
        without incurring a finance charge, with respect to--
                    ``(A) any balances for days in billing cycles that 
                precede the most recent billing cycle; or
                    ``(B) any balances or portions thereof in the 
                current billing cycle that were repaid within such time 
                period.
            ``(2) Exceptions.--Paragraph (1) does not apply to--
                    ``(A) any adjustment to a finance charge as a result 
                of the resolution of a dispute; or

[[Page 123 STAT. 1739]]

                    ``(B) any adjustment to a finance charge as a result 
                of the return of a payment for insufficient funds.

    ``(k) 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 expressly elected to permit the 
        creditor, with respect to such account, to complete transactions 
        involving the extension of credit under such account in excess 
        of the amount of credit authorized.
            ``(2) Disclosure <<NOTE: Notice.>> 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. If the consumer makes 
        the election referred to in paragraph (1), the creditor shall 
        provide notice to the consumer of the right to revoke the 
        election, in the form prescribed by the Board, in any periodic 
        statement that includes notice of the imposition of an over-the-
        limit fee during the period covered by the statement.
            ``(3) Form <<NOTE: Regulations.>> of election.--A consumer 
        may make or revoke the election referred to in paragraph (1) 
        orally, electronically, or in writing, pursuant to regulations 
        prescribed by the Board. The Board shall prescribe regulations 
        to ensure that the same options are available for both making 
        and revoking such election.
            ``(4) Time of election.--A consumer may make the election 
        referred to in paragraph (1) at any time, and such election 
        shall be effective until the election is revoked in the manner 
        prescribed under paragraph (3).
            ``(5) Regulations.--The Board shall prescribe regulations--
                    ``(A) governing disclosures under this subsection; 
                and
                    ``(B) that prevent unfair or deceptive acts or 
                practices in connection with the manipulation of credit 
                limits designed to increase over-the-limit fees or other 
                penalty fees.
            ``(6) Rule of construction.--Nothing in this subsection 
        shall be construed to prohibit a creditor from completing an 
        over-the-limit transaction, provided that a consumer who has not 
        made a valid election under paragraph (1) is not charged an 
        over-the-limit fee for such transaction.
            ``(7) Restriction on fees charged for an over-the-limit 
        transaction.--With respect to a credit card account under an 
        open end consumer credit plan, an over-the-limit fee may be 
        imposed only once during a billing cycle if the credit limit on 
        the account is exceeded, and an over-the-limit fee, with respect 
        to such excess credit, may be imposed only once in each of the 2 
        subsequent billing cycles, unless the consumer has obtained an 
        additional extension of credit in excess of such credit limit 
        during any such subsequent cycle or the consumer reduces the 
        outstanding balance below the credit limit as of the end of such 
        billing cycle.

[[Page 123 STAT. 1740]]

    ``(l) Limit on Fees Related to Method of Payment.--With respect to a 
credit card account under an open end consumer credit plan, the creditor 
may not impose a separate fee to allow the obligor to repay an extension 
of credit or finance charge, whether such repayment is made by mail, 
electronic transfer, telephone authorization, or other means, unless 
such payment involves an expedited service by a service representative 
of the creditor.''.
    (b) Reasonable Penalty Fees.--
            (1) In general.--Chapter 3 of the Truth in Lending Act (15 
        U.S.C. 1661 et seq.), as amended by this Act, is amended by 
        adding at the end the following:
``SEC. 149. <<NOTE: 15 USC 1665d.>> REASONABLE PENALTY FEES ON 
                        OPEN END CONSUMER CREDIT PLANS.

    ``(a) In General.--The amount of any penalty fee or charge that a 
card issuer may impose with respect to a credit card account under an 
open end consumer credit plan in connection with any omission with 
respect to, or violation of, the cardholder agreement, including any 
late payment fee, over-the-limit fee, or any other penalty fee or 
charge, shall be reasonable and proportional to such omission or 
violation.
    ``(b) Rulemaking Required.--The <<NOTE: Deadline.>> Board, in 
consultation with the Comptroller of the Currency, the Board of 
Directors of the Federal Deposit Insurance Corporation, the Director of 
the Office of Thrift Supervision, and the National Credit Union 
Administration Board, shall issue final rules not later than 9 months 
after the date of enactment of this section, to establish standards for 
assessing whether the amount of any penalty fee or charge described 
under subsection (a) is reasonable and proportional to the omission or 
violation to which the fee or charge relates. 
Subsection <<NOTE: Effective date.>> (a) shall become effective 15 
months after the date of enactment of this section.

    ``(c) Considerations.--In issuing rules required by this section, 
the Board shall consider--
            ``(1) the cost incurred by the creditor from such omission 
        or violation;
            ``(2) the deterrence of such omission or violation by the 
        cardholder;
            ``(3) the conduct of the cardholder; and
            ``(4) such other factors as the Board may deem necessary or 
        appropriate.

    ``(d) Differentiation Permitted.--In issuing rules required by this 
subsection, the Board may establish different standards for different 
types of fees and charges, as appropriate.
    ``(e) Safe Harbor Rule Authorized.--The Board, in consultation with 
the Comptroller of the Currency, the Board of Directors of the Federal 
Deposit Insurance Corporation, the Director of the Office of Thrift 
Supervision, and the National Credit Union Administration Board, may 
issue rules to provide an amount for any penalty fee or charge described 
under subsection (a) that is presumed to be reasonable and proportional 
to the omission or violation to which the fee or charge relates.''.
            (2) Clerical amendments.--Chapter 3 of the Truth in Lending 
        Act (15 U.S.C. 1661 et seq.) is amended--
                    (A) in the chapter heading, by inserting ``AND 
                LIMITS ON CREDIT CARD FEES'' after ``ADVERTISING''; and

[[Page 123 STAT. 1741]]

                    (B) in the table of sections for the chapter, by 
                adding at the end the following:

``148. Interest rate reduction on open end consumer credit plans.
``149. Reasonable penalty fees on open end consumer credit plans.''.

SEC. 103. USE OF TERMS CLARIFIED.

    Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is amended 
by adding at the end the following:
    ``(m) Use of Term `Fixed Rate'.--With respect to the terms of any 
credit card account under an open end consumer credit plan, the term 
`fixed', when appearing in conjunction with a reference to the annual 
percentage rate or interest rate applicable with respect to such 
account, may only be used to refer to an annual percentage rate or 
interest rate that will not change or vary for any reason over the 
period specified clearly and conspicuously in the terms of the 
account.''.
SEC. 104. APPLICATION OF CARD PAYMENTS.

    Section 164 of the Truth in Lending Act (15 U.S.C. 1666c) is 
amended--
            (1) by striking the section heading and all that follows 
        through ``Payments'' and inserting the following:
``Sec. 164. Prompt and fair crediting of payments

    ``(a) In General.--Payments'';
            (2) by inserting ``, by 5:00 p.m. on the date on which such 
        payment is due,'' after ``in readily identifiable form'';
            (3) by striking ``manner, location, and time'' and inserting 
        ``manner, and location''; and
            (4) by adding at the end the following:

    ``(b) Application of Payments.--
            ``(1) In general.--Upon receipt of a payment from a 
        cardholder, the card issuer shall apply amounts in excess of the 
        minimum payment amount first to the card balance bearing the 
        highest rate of interest, and then to each successive balance 
        bearing the next highest rate of interest, until the payment is 
        exhausted.
            ``(2) Clarification relating to certain deferred interest 
        arrangements.--A creditor shall allocate the entire amount paid 
        by the consumer in excess of the minimum payment amount to a 
        balance on which interest is deferred during the last 2 billing 
        cycles immediately preceding the expiration of the period during 
        which interest is deferred.

    ``(c) Changes by Card Issuer.--If a card issuer makes a material 
change in the mailing address, office, or procedures for handling 
cardholder payments, and such change causes a material delay in the 
crediting of a cardholder payment made during the 60-day period 
following the date on which such change took effect, the card issuer may 
not impose any late fee or finance charge for a late payment on the 
credit card account to which such payment was credited.''.
SEC. 105. STANDARDS APPLICABLE TO INITIAL ISSUANCE OF SUBPRIME OR 
                        ``FEE HARVESTER'' CARDS.

    Section 127 of the Truth in Lending Act (15 U.S.C. 1637), as amended 
by this Act, is amended by adding at the end the following new 
subsection:

[[Page 123 STAT. 1742]]

    ``(n) Standards Applicable to Initial Issuance of Subprime or `Fee 
Harvester' Cards.--
            ``(1) In general.--If the terms of a credit card account 
        under an open end consumer credit plan require the payment of 
        any fees (other than any late fee, over-the-limit fee, or fee 
        for a payment returned for insufficient funds) by the consumer 
        in the first year during which the account is opened in an 
        aggregate amount in excess of 25 percent of the total amount of 
        credit authorized under the account when the account is opened, 
        no payment of any fees (other than any late fee, over-the-limit 
        fee, or fee for a payment returned for insufficient funds) may 
        be made from the credit made available under the terms of the 
        account.
            ``(2) Rule of construction.--No provision of this subsection 
        may be construed as authorizing any imposition or payment of 
        advance fees otherwise prohibited by any provision of law.''.
SEC. 106. RULES REGARDING PERIODIC STATEMENTS.

    (a) In General.--Section 127 of the Truth in Lending Act (15 U.S.C. 
1637) is amended by adding at the end the following:
    ``(o) Due Dates for Credit Card Accounts.--
            ``(1) In general.--The payment due date for a credit card 
        account under an open end consumer credit plan shall be the same 
        day each month.
            ``(2) Weekend or holiday due dates.--If the payment due date 
        for a credit card account under an open end consumer credit plan 
        is a day on which the creditor does not receive or accept 
        payments by mail (including weekends and holidays), the creditor 
        may not treat a payment received on the next business day as 
        late for any purpose.''.

    (b) Length of Billing Period.--
            (1) In general.--Section 163 of the Truth in Lending Act (15 
        U.S.C. 1666b) is amended to read as follows:
``SEC. 163. <<NOTE: Deadlines.>> TIMING OF PAYMENTS.

    ``(a) Time To Make Payments.--A creditor may not treat a payment on 
an open end consumer credit plan as late for any purpose, unless the 
creditor has adopted reasonable procedures designed to ensure that each 
periodic statement including the information required by section 127(b) 
is mailed or delivered to the consumer not later than 21 days before the 
payment due date.
    ``(b) Grace Period.--If an open end consumer credit plan provides a 
time period within which an obligor may repay any portion of the credit 
extended without incurring an additional finance charge, such additional 
finance charge may not be imposed with respect to such portion of the 
credit extended for the billing cycle of which such period is a part, 
unless a statement which includes the amount upon which the finance 
charge for the period is based was mailed or delivered to the consumer 
not later than 21 days before the date specified in the statement by 
which payment must be made in order to avoid imposition of that finance 
charge.''.
            (2) Effective <<NOTE: 15 USC 1666b note.>> date.--
        Notwithstanding section 3, section 163 of the Truth in Lending 
        Act, as amended by this subsection, shall become effective 90 
        days after the date of enactment of this Act.

    (c) Clerical Amendments.--The table of sections for chapter 4 of the 
Truth in Lending Act is amended--

[[Page 123 STAT. 1743]]

            (1) by striking the item relating to section 163 and 
        inserting the following:

``163. Timing of payments.''; and

            (2) by striking the item relating to section 171 and 
        inserting the following:

``171. Universal defaults prohibited.
``172. Unilateral changes in credit card agreement prohibited.
``173. Applicability of State laws.''.

SEC. 107. ENHANCED PENALTIES.

    Section 130(a)(2)(A) of the Truth in Lending Act (15 U.S.C. 
1640(a)(2)(A)) is amended by striking ``or (iii) in the'' and inserting 
the following: ``(iii) in the case of an individual action relating to 
an open end consumer credit plan that is not secured by real property or 
a dwelling, twice the amount of any finance charge in connection with 
the transaction, with a minimum of $500 and a maximum of $5,000, or such 
higher amount as may be appropriate in the case of an established 
pattern or practice of such failures; or (iv) in the''.
SEC. 108. CLERICAL AMENDMENTS.

    Section 103(i) of the Truth in Lending Act (15 U.S.C. 1602(i)) is 
amended--
            (1) by striking ``term'' and all that follows through 
        ``means'' and inserting the following: ``terms `open end credit 
        plan' and `open end consumer credit plan' mean''; and
            (2) in the second sentence, by inserting ``or open end 
        consumer credit plan'' after ``credit plan'' each place that 
        term appears.
SEC. 109. CONSIDERATION OF ABILITY TO REPAY.

    (a) In General.--Chapter 3 of the Truth in Lending Act (15 U.S.C. 
1666 et seq.), as amended by this title, is amended by adding at the end 
the following:
``SEC. 150. <<NOTE: 15 USC 1665e.>> CONSIDERATION OF ABILITY TO 
                        REPAY.

    ``A card issuer may not open any credit card account for any 
consumer under an open end consumer credit plan, or increase any credit 
limit applicable to such account, unless the card issuer considers the 
ability of the consumer to make the required payments under the terms of 
such account.''.
    (b) Clerical Amendment.--Chapter 3 of the Truth in Lending Act (15 
U.S.C. 1661 et seq.) is amended in the table of sections for the 
chapter, by adding at the end the following:

``150. Consideration of ability to repay.''.

                 TITLE II--ENHANCED CONSUMER DISCLOSURES

SEC. 201. PAYOFF TIMING DISCLOSURES.

    (a) In General.--Section 127(b)(11) of the Truth in Lending Act (15 
U.S.C. 1637(b)(11)) is amended to read as follows:
            ``(11)(A) A written statement in the following form: 
        `Minimum Payment Warning: Making only the minimum payment will 
        increase the amount of interest you pay and the time

[[Page 123 STAT. 1744]]

        it takes to repay your balance.', or such similar statement as 
        is established by the Board pursuant to consumer testing.
            ``(B) 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 and principal 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 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 36 months; and
                    ``(iv) a toll-free telephone number at which the 
                consumer may receive information about accessing credit 
                counseling and debt management services.
            ``(C)(i) 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) 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.
            ``(D) All of the information described in subparagraph (B) 
        shall--
                    ``(i) <<NOTE: Regulations.>> 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.
            ``(E) 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.
            ``(F) 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

[[Page 123 STAT. 1745]]

                    ``(ii) the items required to be included in the 
                table shall be listed in the order in which such items 
                are set forth in subparagraph (B).
            ``(G) In prescribing the form of the table under 
        subparagraph (D), the Board shall employ terminology which is 
        different than the terminology which is employed in subparagraph 
        (B), if such terminology is more easily understood and conveys 
        substantially the same meaning.''.

    (b) Civil Liability.--Section 130(a) of the Truth in Lending Act (15 
U.S.C. 1640(a)) is amended, in the undesignated paragraph following 
paragraph (4), by striking the second sentence and inserting the 
following: ``In connection with the disclosures referred to in 
subsections (a) and (b) of section 127, a creditor shall have a 
liability determined under paragraph (2) only for failing to comply with 
the requirements of section 125, 127(a), or any of paragraphs (4) 
through (13) of section 127(b), or for failing to comply with disclosure 
requirements under State law for any term or item that the Board has 
determined to be substantially the same in meaning under section 
111(a)(2) as any of the terms or items referred to in section 127(a), or 
any of paragraphs (4) through (13) of section 127(b).''.
    (c) Guidelines <<NOTE: 15 USC 1637 note.>> Required.--
            (1) In general.--Not <<NOTE: Deadline. Communications and 
        tele-communications.>> later than 6 months after the date of 
        enactment of this Act, the Board shall issue guidelines, by 
        rule, in consultation with the Secretary of the Treasury, for 
        the establishment and maintenance by creditors of a toll-free 
        telephone number for purposes of providing information about 
        accessing credit counseling and debt management services, as 
        required under section 127(b)(11)(B)(iv) of the Truth in Lending 
        Act, as added by this section.
            (2) Approved agencies.--Guidelines issued under this 
        subsection shall ensure that referrals provided by the toll-free 
        number referred to in paragraph (1) include only those nonprofit 
        budget and credit counseling agencies approved by a United 
        States bankruptcy trustee pursuant to section 111(a) of title 
        11, United States Code.
SEC. 202. REQUIREMENTS RELATING TO LATE PAYMENT DEADLINES AND 
                        PENALTIES.

    Section 127(b)(12) of the Truth in Lending Act (15 U.S.C. 
1637(b)(12)) is amended to read as follows:
            ``(12) Requirements relating to late payment deadlines and 
        penalties.--
                    ``(A) Late payment deadline required to be 
                disclosed.--In the case of a credit card account under 
                an open end consumer credit plan under which a late fee 
                or charge may be imposed due to the failure of the 
                obligor to make payment on or before the due date for 
                such payment, the periodic statement required under 
                subsection (b) with respect to the account shall 
                include, in a conspicuous location on the billing 
                statement, the date on which the payment is due or, if 
                different, the date on which a late payment fee will be 
                charged, together with the amount of the fee or charge 
                to be imposed if payment is made after that date.
                    ``(B) Disclosure of increase in interest rates for 
                late payments.--If <<NOTE: Notice.>> 1 or more late 
                payments under an

[[Page 123 STAT. 1746]]

                open end consumer credit plan may result in an increase 
                in the annual percentage rate applicable to the account, 
                the statement required under subsection (b) with respect 
                to the account shall include conspicuous notice of such 
                fact, together with the applicable penalty annual 
                percentage rate, in close proximity to the disclosure 
                required under subparagraph (A) of the date on which 
                payment is due under the terms of the account.
                    ``(C) Payments at local branches.--If the creditor, 
                in the case of a credit card account referred to in 
                subparagraph (A), is a financial institution which 
                maintains branches or offices at which payments on any 
                such account are accepted from the obligor in person, 
                the date on which the obligor makes a payment on the 
                account at such branch or office shall be considered to 
                be the date on which the payment is made for purposes of 
                determining whether a late fee or charge may be imposed 
                due to the failure of the obligor to make payment on or 
                before the due date for such payment.''.
SEC. 203. RENEWAL DISCLOSURES.

    Section 127(d) of the Truth in Lending Act (15 U.S.C. 1637(d)) is 
amended--
            (1) by striking paragraph (2);
            (2) by redesignating paragraph (3) as paragraph (2); and
            (3) in paragraph (1), by striking ``Except as provided in 
        paragraph (2), a card issuer'' and inserting the following: ``A 
        card issuer that has changed or amended any term of the account 
        since the last renewal that has not been previously disclosed 
        or''.
SEC. 204. INTERNET POSTING OF CREDIT CARD AGREEMENTS.

    (a) In General.--Section 122 of the Truth and Lending Act (15 U.S.C. 
1632) is amended by adding at the end the following new subsection:
    ``(d) Additional Electronic Disclosures.--
            ``(1) Posting agreements.--Each creditor shall establish and 
        maintain an Internet site on which the creditor shall post the 
        written agreement between the creditor and the consumer for each 
        credit card account under an open-end consumer credit plan.
            ``(2) Creditor to provide contracts to the board.--Each 
        creditor shall provide to the Board, in electronic format, the 
        consumer credit card agreements that it publishes on its 
        Internet site.
            ``(3) Record repository.--The <<NOTE: Public 
        information.>> Board shall establish and maintain on its 
        publicly available Internet site a central repository of the 
        consumer credit card agreements received from creditors pursuant 
        to this subsection, and such agreements shall be easily 
        accessible and retrievable by the public.
            ``(4) Exception.--This subsection 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 Federal banking agencies (as that term is defined in

[[Page 123 STAT. 1747]]

        section 603) and the Federal Trade Commission, may promulgate 
        regulations to implement this subsection, including specifying 
        the format for posting the agreements on the Internet sites of 
        creditors and establishing exceptions to paragraphs (1) and (2), 
        in any case in which 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.''.
SEC. 205. PREVENTION OF DECEPTIVE MARKETING OF CREDIT REPORTS.

    (a) Preventing Deceptive Marketing.--Section 612 of the Fair Credit 
Reporting Act (15 U.S.C. 1681j) is amended by adding at the end the 
following:
    ``(g) Prevention of Deceptive Marketing of Credit Reports.--
            ``(1) In general.--Subject to rulemaking pursuant to section 
        205(b) of the Credit CARD Act of 2009, any advertisement for a 
        free credit report in any medium shall prominently disclose in 
        such advertisement that free credit reports are available under 
        Federal law at: `AnnualCreditReport.com' (or such other source 
        as may be authorized under Federal law).
            ``(2) Television and radio advertisement.--In the case of an 
        advertisement broadcast by television, the disclosures required 
        under paragraph (1) shall be included in the audio and visual 
        part of such advertisement. In the case of an advertisement 
        broadcast by televison or radio, the disclosure required under 
        paragraph (1) shall consist only of the following: `This is not 
        the free credit report provided for by Federal law'.''.

    (b) <<NOTE: 15 USC 1681j note.>> Rulemaking.--
            (1) In general.--Not <<NOTE: Deadline.>> later than 9 months 
        after the date of enactment of this Act, the Federal Trade 
        Commission shall issue a final rule to carry out this section.
            (2) Content.--The rule required by this subsection--
                    (A) shall include specific wording to be used in 
                advertisements in accordance with this section; and
                    (B) for advertisements on the Internet, shall 
                include whether the disclosure required under section 
                612(g)(1) of the Fair Credit Reporting Act (as added by 
                this section) shall appear on the advertisement or the 
                website on which the free credit report is made 
                available.
            (3) Interim disclosures.--If an advertisement subject to 
        section 612(g) of the Fair Credit Reporting Act, as added by 
        this section, is made public after the 9-month deadline 
        specified in paragraph (1), but before the rule required by 
        paragraph (1) is finalized, such advertisement shall include the 
        disclosure: ``Free credit reports are available under Federal 
        law at: `AnnualCreditReport.com'.''.

                TITLE III--PROTECTION OF YOUNG CONSUMERS

SEC. 301. EXTENSIONS OF CREDIT TO UNDERAGE CONSUMERS.

    Section 127(c) of the Truth in Lending Act (15 U.S.C. 1637(c)) is 
amended by adding at the end the following:

[[Page 123 STAT. 1748]]

            ``(8) Applications from underage consumers.--
                    ``(A) Prohibition on issuance.--No credit card may 
                be issued to, or open end consumer credit plan 
                established by or on behalf of, a consumer who has not 
                attained the age of 21, unless the consumer has 
                submitted a written application to the card issuer that 
                meets the requirements of subparagraph (B).
                    ``(B) Application requirements.--An application to 
                open a credit card account by a consumer who has not 
                attained the age of 21 as of the date of submission of 
                the application shall require--
                          ``(i) the signature of a cosigner, including 
                      the parent, legal guardian, spouse, or any other 
                      individual who has attained the age of 21 having a 
                      means to repay debts incurred by the consumer in 
                      connection with the account, indicating joint 
                      liability for debts incurred by the consumer in 
                      connection with the account before the consumer 
                      has attained the age of 21; or
                          ``(ii) submission by the consumer of financial 
                      information, including through an application, 
                      indicating an independent means of repaying any 
                      obligation arising from the proposed extension of 
                      credit in connection with the account.
                    ``(C) Safe harbor.--The <<NOTE: Regulations.>> Board 
                shall promulgate regulations providing standards that, 
                if met, would satisfy the requirements of subparagraph 
                (B)(ii).''.
SEC. 302. PROTECTION OF YOUNG CONSUMERS FROM PRESCREENED CREDIT 
                        OFFERS.

    Section 604(c)(1)(B) of the Fair Credit Reporting Act (15 U.S.C. 
1681b(c)(1)(B)) is amended--
            (1) in clause (ii), by striking ``and'' at the end; and
            (2) in clause (iii), by striking the period at the end and 
        inserting the following: ``; and
                    ``(iv) the consumer report does not contain a date 
                of birth that shows that the consumer has not attained 
                the age of 21, or, if the date of birth on the consumer 
                report shows that the consumer has not attained the age 
                of 21, such consumer consents to the consumer reporting 
                agency to such furnishing.''.
SEC. 303. ISSUANCE OF CREDIT CARDS TO CERTAIN COLLEGE STUDENTS.

    Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is amended 
by adding at the end the following new subsection:
    ``(p) 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 credit card 
account for which a parent, legal guardian, or spouse of the consumer, 
or any other individual has assumed joint liability for debts incurred 
by the consumer in connection with the account before the consumer 
attains the age of 21, unless that parent, guardian, or spouse approves 
in writing, and assumes joint liability for, such increase.''.

[[Page 123 STAT. 1749]]

SEC. 304. PRIVACY PROTECTIONS FOR COLLEGE STUDENTS.

    Section 140 of the Truth in Lending Act (15 U.S.C. 1650) is amended 
by adding at the end the following:
    ``(f) Credit Card Protections for College Students.--
            ``(1) Disclosure required.--An institution of higher 
        education shall publicly disclose any contract or other 
        agreement made with a card issuer or creditor for the purpose of 
        marketing a credit card.
            ``(2) Inducements prohibited.--No card issuer or creditor 
        may offer to a student at an institution of higher education any 
        tangible item to induce such student to apply for or participate 
        in an open end consumer credit plan offered by such card issuer 
        or creditor, if such offer is made--
                    ``(A) on the campus of an institution of higher 
                education;
                    ``(B) near the campus of an institution of higher 
                education, as determined by rule of the Board; or
                    ``(C) at an event sponsored by or related to an 
                institution of higher education.
            ``(3) Sense of the congress.--It is the sense of the 
        Congress that each institution of higher education should 
        consider adopting the following policies relating to credit 
        cards:
                    ``(A) That any card issuer that markets a credit 
                card on the campus of such institution notify the 
                institution of the location at which such marketing will 
                take place.
                    ``(B) That the number of locations on the campus of 
                such institution at which the marketing of credit cards 
                takes place be limited.
                    ``(C) That credit card and debt education and 
                counseling sessions be offered as a regular part of any 
                orientation program for new students of such 
                institution.''.
SEC. 305. COLLEGE CREDIT CARD AGREEMENTS.

    (a) In General.--Section 127 of the Truth in Lending Act (15 U.S.C. 
1637), as otherwise amended by this Act, is amended by adding at the end 
the following:
    ``(r) College Card Agreements.--
            ``(1) Definitions.--For purposes of this subsection, the 
        following definitions shall apply:
                    ``(A) College affinity card.--The term `college 
                affinity card' means a credit card issued by a credit 
                card issuer under an open end consumer credit plan in 
                conjunction with an agreement between the issuer and an 
                institution of higher education, or an alumni 
                organization or foundation affiliated with or related to 
                such institution, under which such cards are issued to 
                college students who have an affinity with such 
                institution, organization and--
                          ``(i) the creditor has agreed to donate a 
                      portion of the proceeds of the credit card to the 
                      institution, organization, or foundation 
                      (including a lump sum or 1-time payment of money 
                      for access);
                          ``(ii) the creditor has agreed to offer 
                      discounted terms to the consumer; or
                          ``(iii) the credit card bears the name, 
                      emblem, mascot, or logo of such institution, 
                      organization, or foundation, or other words, 
                      pictures, or symbols readily

[[Page 123 STAT. 1750]]

                      identified with such institution, organization, or 
                      foundation.
                    ``(B) College student credit card account.--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.
                    ``(C) College student.--The term `college student' 
                means an individual who is a full-time or a part-time 
                student attending an institution of higher education.
                    ``(D) Institution of higher education.--The term 
                `institution of higher education' has the same meaning 
                as in section 101 and 102 of the Higher Education Act of 
                1965 (20 U.S.C. 1001 and 1002).
            ``(2) Reports by creditors.--
                    ``(A) In general.--Each creditor shall submit an 
                annual report to the Board containing the terms and 
                conditions of all business, marketing, and promotional 
                agreements and college affinity card agreements with an 
                institution of higher education, or an alumni 
                organization or foundation affiliated with or related to 
                such institution, with respect to any college student 
                credit card issued to a college student at such 
                institution.
                    ``(B) Details of report.--The information required 
                to be reported under subparagraph (A) includes--
                          ``(i) any memorandum of understanding between 
                      or among a creditor, an institution of higher 
                      education, an alumni association, or foundation 
                      that directly or indirectly relates to any aspect 
                      of any agreement referred to in such subparagraph 
                      or controls or directs any obligations or 
                      distribution of benefits between or among any such 
                      entities;
                          ``(ii) the amount of any payments from the 
                      creditor to the institution, organization, or 
                      foundation during the period covered by the 
                      report, and the precise terms of any agreement 
                      under which such amounts are determined; and
                          ``(iii) the number of credit card accounts 
                      covered by any such agreement that were opened 
                      during the period covered by the report, and the 
                      total number of credit card accounts covered by 
                      the agreement that were outstanding at the end of 
                      such period.
                    ``(C) Aggregation by institution.--The information 
                required to be reported under subparagraph (A) shall be 
                aggregated with respect to each institution of higher 
                education or alumni organization or foundation 
                affiliated with or related to such institution.
                    ``(D) Initial <<NOTE: Time period.>> report.--The 
                initial report required under subparagraph (A) shall be 
                submitted to the Board before the end of the 9-month 
                period beginning on the date of enactment of this 
                subsection.
            ``(3) Reports by board.--The <<NOTE: Public 
        information.>> Board shall submit to the Congress, and make 
        available to the public, an annual report that lists the 
        information concerning credit card agreements submitted to the 
        Board under paragraph (2) by each institution of higher 
        education, alumni organization, or foundation.''.

    (b) Study and <<NOTE: 15 USC 1637 note.>> Report by the Comptroller 
General.--

[[Page 123 STAT. 1751]]

            (1) Study.--The Comptroller General of the United States 
        shall, from time to time, review the reports submitted by 
        creditors under section 127(r) of the Truth in Lending Act, as 
        added by this section, and the marketing practices of creditors 
        to determine the impact that college affinity card agreements 
        and college student card agreements have on credit card debt.
            (2) Report.--Upon completion of any study under paragraph 
        (1), the Comptroller General shall periodically submit a report 
        to the Congress on the findings and conclusions of the study, 
        together with such recommendations for administrative or 
        legislative action as the Comptroller General determines to be 
        appropriate.

                          TITLE IV--GIFT CARDS

SEC. 401. GENERAL-USE PREPAID CARDS, GIFT CERTIFICATES, AND STORE 
                        GIFT CARDS.

    The Electronic Fund Transfer Act (15 U.S.C. 1693 et seq.) is 
amended--
            (1) by redesignating sections 915 <<NOTE: 15 USC 1693 note, 
        1693m-1693r.>> through 921 as sections 916 through 922, 
        respectively; and
            (2) by inserting after section 914 the following:
``SEC. 915. <<NOTE: 15 USC 1693l-1.>> GENERAL-USE PREPAID CARDS, 
                        GIFT CERTIFICATES, AND STORE GIFT CARDS.

    ``(a) Definitions.--In this section, the following definitions shall 
apply:
            ``(1) Dormancy fee; inactivity charge or fee.--The terms 
        `dormancy fee' and `inactivity charge or fee' mean a fee, 
        charge, or penalty for non-use or inactivity of a gift 
        certificate, store gift card, or general-use prepaid card.
            ``(2) General use prepaid card, gift certificate, and store 
        gift card.--
                    ``(A) General-use prepaid card.--The term `general-
                use prepaid card' means a card or other payment code or 
                device issued by any person that is--
                          ``(i) redeemable at multiple, unaffiliated 
                      merchants or service providers, or automated 
                      teller machines;
                          ``(ii) issued in a requested amount, whether 
                      or not that amount may, at the option of the 
                      issuer, be increased in value or reloaded if 
                      requested by the holder;
                          ``(iii) purchased or loaded on a prepaid 
                      basis; and
                          ``(iv) honored, upon presentation, by 
                      merchants for goods or services, or at automated 
                      teller machines.
                    ``(B) Gift certificate.--The term `gift certificate' 
                means an electronic promise that is--
                          ``(i) redeemable at a single merchant or an 
                      affiliated group of merchants that share the same 
                      name, mark, or logo;
                          ``(ii) issued in a specified amount that may 
                      not be increased or reloaded;
                          ``(iii) purchased on a prepaid basis in 
                      exchange for payment; and

[[Page 123 STAT. 1752]]

                          ``(iv) honored upon presentation by such 
                      single merchant or affiliated group of merchants 
                      for goods or services.
                    ``(C) Store gift card.--The term `store gift card' 
                means an electronic promise, plastic card, or other 
                payment code or device that is--
                          ``(i) redeemable at a single merchant or an 
                      affiliated group of merchants that share the same 
                      name, mark, or logo;
                          ``(ii) issued in a specified amount, whether 
                      or not that amount may be increased in value or 
                      reloaded at the request of the holder;
                          ``(iii) purchased on a prepaid basis in 
                      exchange for payment; and
                          ``(iv) honored upon presentation by such 
                      single merchant or affiliated group of merchants 
                      for goods or services.
                    ``(D) Exclusions.--The terms `general-use prepaid 
                card', `gift certificate', and `store gift card' do not 
                include an electronic promise, plastic card, or payment 
                code or device that is--
                          ``(i) used solely for telephone services;
                          ``(ii) reloadable and not marketed or labeled 
                      as a gift card or gift certificate;
                          ``(iii) a loyalty, award, or promotional gift 
                      card, as defined by the Board;
                          ``(iv) not marketed to the general public;
                          ``(v) issued in paper form only (including for 
                      tickets and events); or
                          ``(vi) redeemable solely for admission to 
                      events or venues at a particular location or group 
                      of affiliated locations, which may also include 
                      services or goods obtainable--
                                    ``(I) at the event or venue after 
                                admission; or
                                    ``(II) in conjunction with admission 
                                to such events or venues, at specific 
                                locations affiliated with and in 
                                geographic proximity to the event or 
                                venue.
            ``(3) Service fee.--
                    ``(A) In general.--The term `service fee' means a 
                periodic fee, charge, or penalty for holding or use of a 
                gift certificate, store gift card, or general-use 
                prepaid card.
                    ``(B) Exclusion.--With respect to a general-use 
                prepaid card, the term `service fee' does not include a 
                one-time initial issuance fee.

    ``(b) Prohibition on Imposition of Fees or Charges.--
            ``(1) In general.--Except as provided under paragraphs (2) 
        through (4), it shall be unlawful for any person to impose a 
        dormancy fee, an inactivity charge or fee, or a service fee with 
        respect to a gift certificate, store gift card, or general-use 
        prepaid card.
            ``(2) Exceptions.--A dormancy fee, inactivity charge or fee, 
        or service fee may be charged with respect to a gift 
        certificate, store gift card, or general-use prepaid card, if--

[[Page 123 STAT. 1753]]

                    ``(A) there has been no activity with respect to the 
                certificate or card in the 12-month period ending on the 
                date on which the charge or fee is imposed;
                    ``(B) the disclosure requirements of paragraph (3) 
                have been met;
                    ``(C) not more than one fee may be charged in any 
                given month; and
                    ``(D) any additional requirements that the Board may 
                establish through rulemaking under subsection (d) have 
                been met.
            ``(3) Disclosure requirements.--The disclosure requirements 
        of this paragraph are met if--
                    ``(A) the gift certificate, store gift card, or 
                general-use prepaid card clearly and conspicuously 
                states--
                          ``(i) that a dormancy fee, inactivity charge 
                      or fee, or service fee may be charged;
                          ``(ii) the amount of such fee or charge;
                          ``(iii) how often such fee or charge may be 
                      assessed; and
                          ``(iv) that such fee or charge may be assessed 
                      for inactivity; and
                    ``(B) the issuer or vendor of such certificate or 
                card informs the purchaser of such charge or fee before 
                such certificate or card is purchased, regardless of 
                whether the certificate or card is purchased in person, 
                over the Internet, or by telephone.
            ``(4) Exclusion.--The prohibition under paragraph (1) shall 
        not apply to any gift certificate--
                    ``(A) that is distributed pursuant to an award, 
                loyalty, or promotional program, as defined by the 
                Board; and
                    ``(B) with respect to which, there is no money or 
                other value exchanged.

    ``(c) Prohibition on Sale of Gift Cards With Expiration Dates.--
            ``(1) In general.--Except as provided under paragraph (2), 
        it shall be unlawful for any person to sell or issue a gift 
        certificate, store gift card, or general-use prepaid card that 
        is subject to an expiration date.
            ``(2) Exceptions.--A gift certificate, store gift card, or 
        general-use prepaid card may contain an expiration date if--
                    ``(A) the expiration date is not earlier than 5 
                years after the date on which the gift certificate was 
                issued, or the date on which card funds were last loaded 
                to a store gift card or general-use prepaid card; and
                    ``(B) the terms of expiration are clearly and 
                conspicuously stated.

    ``(d) Additional Rulemaking.--
            ``(1) In general.--The Board shall--
                    ``(A) <<NOTE: Regulations.>> prescribe regulations 
                to carry out this section, in addition to any other 
                rules or regulations required by this title, including 
                such additional requirements as appropriate relating to 
                the amount of dormancy fees, inactivity charges or fees, 
                or service fees that may be assessed and the amount of 
                remaining value of a gift certificate, store gift card, 
                or general-use prepaid card below which such charges or 
                fees may be assessed; and

[[Page 123 STAT. 1754]]

                    ``(B) shall determine the extent to which the 
                individual definitions and provisions of the Electronic 
                Fund Transfer Act or Regulation E should apply to 
                general-use prepaid cards, gift certificates, and store 
                gift cards.
            ``(2) Consultation.--In prescribing regulations under this 
        subsection, the Board shall consult with the Federal Trade 
        Commission.
            ``(3) Timing; effective date.--
        The <<NOTE: Deadline.>> regulations required by this subsection 
        shall be issued in final form not later than 9 months after the 
        date of enactment of the Credit CARD Act of 2009.''.
SEC. 402. RELATION TO STATE LAWS.

    Section 920 of the Electronic Fund Transfer Act <<NOTE: 15 USC 
1693q.>>  (as redesignated by this title) is amended by inserting 
``dormancy fees, inactivity charges or fees, service fees, or expiration 
dates of gift certificates, store gift cards, or general-use prepaid 
cards,'' after ``electronic fund transfers,''.
SEC. 403. <<NOTE: 15 USC 1693l-1 note.>> EFFECTIVE DATE.

    This title and the amendments made by this title shall become 
effective 15 months after the date of enactment of this Act.

                    TITLE V--MISCELLANEOUS PROVISIONS

SEC. 501. STUDY AND REPORT ON INTERCHANGE FEES.

    (a) Study Required.--The Comptroller General of the United States 
(in this section referred to as the ``Comptroller'') shall conduct a 
study on use of credit by consumers, interchange fees, and their effects 
on consumers and merchants.
    (b) Subjects for Review.--In conducting the study required by this 
section, the Comptroller shall review--
            (1) the extent to which interchange fees are required to be 
        disclosed to consumers and merchants, whether merchants are 
        restricted from disclosing interchange or merchant discount 
        fees, and how such fees are overseen by the Federal banking 
        agencies or other regulators;
            (2) the ways in which the interchange system affects the 
        ability of merchants of varying size to negotiate pricing with 
        card associations and banks;
            (3) the costs and factors incorporated into interchange 
        fees, such as advertising, bonus miles, and rewards, how such 
        costs and factors vary among cards;
            (4) the consequences of the undisclosed nature of 
        interchange fees on merchants and consumers with regard to 
        prices charged for goods and services;
            (5) how merchant discount fees compare to the credit losses 
        and other costs that merchants incur to operate their own credit 
        networks or store cards;
            (6) the extent to which the rules of payment card networks 
        and their policies regarding interchange fees are accessible to 
        merchants;
            (7) other jurisdictions where the central bank has regulated 
        interchange fees and the impact on retail prices to consumers in 
        such jurisdictions;
            (8) whether and to what extent merchants are permitted to 
        discount for cash; and

[[Page 123 STAT. 1755]]

            (9) the extent to which interchange fees allow smaller 
        financial institutions and credit unions to offer payment cards 
        and compete against larger financial institutions.

    (c) Report Required.--Not later than 180 days after the date of 
enactment of this Act, the Comptroller shall submit a report to the 
Committee on Banking, Housing, and Urban Affairs of the Senate and the 
Committee on Financial Services of the House of Representatives 
containing a detailed summary of the findings and conclusions of the 
study required by this section, together with such recommendations for 
legislative or administrative actions as may be appropriate.
SEC. 502. <<NOTE: 15 USC 1616.>> BOARD REVIEW OF CONSUMER CREDIT 
                        PLANS AND REGULATIONS.

    (a) Required Review.--Not <<NOTE: Deadlines.>> 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 expenses 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 implementation 
        of this Act and the amendments made by this Act has affected--
                    (A) cost and availability of credit, particularly 
                with respect to non-prime borrowers;
                    (B) the safety and soundness of credit card issuers;
                    (C) the use of risk-based pricing; or
                    (D) credit card product innovation.

    (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 <<NOTE: Federal Register, 
        publication.>> 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 determination 
                      of the Board that new or revised regulations are 
                      not necessary.
            (2) Revision of review period following material revision of 
        regulations.--In the event that the Board materially revises 
        regulations on consumer credit card plans, a review need not be 
        conducted until 2 years after the effective date of the revised 
        regulations, which thereafter shall be treated

[[Page 123 STAT. 1756]]

        as the new date for the biennial review required by subsection 
        (a).

    (d) Board Report to the Congress.--The Board shall report to 
Congress not 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 (as that 
term is defined in section 3 of the Federal Deposit Insurance Act) 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 compliance by 
credit card issuers 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, 
        including part 227 of title 12 of the Code of Federal 
        Regulations, as prescribed by the Board (referred to as 
        ``Regulation AA'').
SEC. 503. <<NOTE: 31 USC 5311 note.>> STORED VALUE.

    (a) In General.--Not <<NOTE: Deadline. Regulations.>> later than 270 
days after the date of enactment of this Act, the Secretary of the 
Treasury, in consultation with the Secretary of Homeland Security, shall 
issue regulations in final form implementing the Bank Secrecy Act, 
regarding the sale, issuance, redemption, or international transport of 
stored value, including stored value cards.

    (b) Consideration of International Transport.--Regulations under 
this section regarding international transport of stored value may 
include reporting requirements pursuant to section 5316 of title 31, 
United States Code.
    (c) Emerging Methods for Transmittal and Storage in Electronic 
Form.--Regulations under this section shall take into consideration 
current and future needs and methodologies for transmitting and storing 
value in electronic form.
SEC. 504. PROCEDURE FOR TIMELY SETTLEMENT OF ESTATES OF DECEDENT 
                        OBLIGORS.

    (a) In General.--Chapter 2 of the Truth in Lending <<NOTE: 15 USC 
1631 et seq.>> Act ( U.S.C. 1631 et seq.) is amended by adding at the 
end the following new section:
``Sec. 140A <<NOTE: 15 USC 1651.>> Procedure for timely settlement 
                  of estates of decedent obligors

    ``The <<NOTE: Regulations.>> 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.''.

[[Page 123 STAT. 1757]]

    (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 settlement of estates of decedent 
           obligors'.''.

SEC. 505. REPORT TO CONGRESS ON REDUCTIONS OF CONSUMER CREDIT CARD 
                        LIMITS BASED ON CERTAIN INFORMATION AS TO 
                        EXPERIENCE OR TRANSACTIONS OF THE 
                        CONSUMER.

    (a) Report on Creditor Practices Required.--Before the end of the 1-
year period beginning on the date of enactment of this Act, the Board, 
in consultation with the Comptroller of the Currency, the Director of 
the Office of Thrift Supervision, the Federal Deposit Insurance 
Corporation, the National Credit Union Administration Board, and the 
Federal Trade Commission, shall submit a report to the Committee on 
Financial Services of the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate on the extent to 
which, during the 3-year period ending on such date of enactment, 
creditors have reduced credit limits or raised interest rates applicable 
to credit card accounts under open end consumer credit plans based on--
            (1) the geographic location where a credit transaction with 
        the consumer took place, or the identity of the merchant 
        involved in the transaction;
            (2) the credit transactions of the consumer, including the 
        type of credit transaction, the type of items purchased in such 
        transaction, the price of items purchased in such transaction, 
        any change in the type or price of items purchased in such 
        transactions, and other data pertaining to the use of such 
        credit card account by the consumer; and
            (3) the identity of the mortgage creditor which extended or 
        holds the mortgage loan secured by the primary residence of the 
        consumer.

    (b) Other Information.--The report required under subsection (a) 
shall also include--
            (1) the number of creditors that have engaged in the 
        practices described in subsection (a);
            (2) the extent to which the practices described in 
        subsection (a) have an adverse impact on minority or low-income 
        consumers;
            (3) any other relevant information regarding such practices; 
        and
            (4) recommendations to the Congress on any regulatory or 
        statutory changes that may be needed to restrict or prevent such 
        practices.
SEC. 506. BOARD REVIEW OF SMALL BUSINESS CREDIT PLANS AND 
                        RECOMMENDATIONS.

    (a) Required Review.--Not <<NOTE: Deadline.>> later than 9 months 
after the date of enactment of this Act, the Board shall conduct a 
review of the use of credit cards by businesses with not more than 50 
employees (in this section referred to as ``small businesses'') and the 
credit card market for small businesses, including--
            (1) the terms of credit card agreements for small businesses 
        and the practices of credit card issuers relating to small 
        businesses;

[[Page 123 STAT. 1758]]

            (2) the adequacy of disclosures of terms, fees, and other 
        expenses of credit card plans for small businesses;
            (3) the adequacy of protections against unfair or deceptive 
        acts or practices relating to credit card plans for small 
        businesses;
            (4) the cost and availability of credit for small 
        businesses, particularly with respect to non-prime borrowers;
            (5) the use of risk-based pricing for small businesses;
            (6) credit card product innovation relating to small 
        businesses; and
            (7) the extent to which small business owners use personal 
        credit cards to fund their business operations.

    (b) Recommendations.--Following <<NOTE: Deadline.>> the review 
required by subsection (a), the Board shall, not later than 12 months 
after the date of enactment of this Act--
            (1) <<NOTE: Reports.>> provide a report to Congress that 
        summarizes the review and other evidence gathered by the Board, 
        such as through consumer testing or other research, and
            (2) make recommendations for administrative or legislative 
        initiatives to provide protections for credit card plans for 
        small businesses, as appropriate.
SEC. 507. SMALL BUSINESS INFORMATION SECURITY TASK FORCE.

    (a) Definitions.--In this section--
            (1) the terms ``Administration'' and ``Administrator'' mean 
        the Small Business Administration and the Administrator thereof, 
        respectively;
            (2) the term ``small business concern'' has the same meaning 
        as in section 3 of the Small Business Act (15 U.S.C. 632); and
            (3) the term ``task force'' means the task force established 
        under subsection (b).

    (b) Establishment.--The Administrator shall, in conjunction with the 
Secretary of Homeland Security, establish a task force, to be known as 
the ``Small Business Information Security Task Force'', to address the 
information technology security needs of small business concerns and to 
help small business concerns prevent the loss of credit card data.
    (c) Duties.--The <<NOTE: Recommen-dations.>> task force shall--
            (1) identify--
                    (A) the information technology security needs of 
                small business concerns; and
                    (B) the programs and services provided by the 
                Federal Government, State Governments, and nongovernment 
                organizations that serve those needs;
            (2) assess the extent to which the programs and services 
        identified under paragraph (1)(B) serve the needs identified 
        under paragraph (1)(A);
            (3) make recommendations to the Administrator on how to more 
        effectively serve the needs identified under paragraph (1)(A) 
        through--
                    (A) programs and services identified under paragraph 
                (1)(B); and
                    (B) new programs and services promoted by the task 
                force;
            (4) make recommendations on how the Administrator may 
        promote--

[[Page 123 STAT. 1759]]

                    (A) new programs and services that the task force 
                recommends under paragraph (3)(B); and
                    (B) programs and services identified under paragraph 
                (1)(B);
            (5) make recommendations on how the Administrator may inform 
        and educate with respect to--
                    (A) the needs identified under paragraph (1)(A);
                    (B) new programs and services that the task force 
                recommends under paragraph (3)(B); and
                    (C) programs and services identified under paragraph 
                (1)(B);
            (6) make recommendations on how the Administrator may more 
        effectively work with public and private interests to address 
        the information technology security needs of small business 
        concerns; and
            (7) make recommendations on the creation of a permanent 
        advisory board that would make recommendations to the 
        Administrator on how to address the information technology 
        security needs of small business concerns.

    (d) Internet Website Recommendations.--The task force shall make 
recommendations to the Administrator relating to the establishment of an 
Internet website to be used by the Administration to receive and 
dispense information and resources with respect to the needs identified 
under subsection (c)(1)(A) and the programs and services identified 
under subsection (c)(1)(B). As part of the recommendations, the task 
force shall identify the Internet sites of appropriate programs, 
services, and organizations, both public and private, to which the 
Internet website should link.
    (e) Education Programs.--The <<NOTE: Recommen-dations.>> task force 
shall make recommendations to the Administrator relating to developing 
additional education materials and programs with respect to the needs 
identified under subsection (c)(1)(A).

    (f) Existing Materials.--The task force shall organize and 
distribute existing materials that inform and educate with respect to 
the needs identified under subsection (c)(1)(A) and the programs and 
services identified under subsection (c)(1)(B).
    (g) Coordination With Public and Private Sector.--In carrying out 
its responsibilities under this section, the task force shall coordinate 
with, and may accept materials and assistance as it determines 
appropriate from, public and private entities, including--
            (1) any subordinate officer of the Administrator;
            (2) any organization authorized by the Small Business Act to 
        provide assistance and advice to small business concerns;
            (3) other Federal agencies, their officers, or employees; 
        and
            (4) any other organization, entity, or person not described 
        in paragraph (1), (2), or (3).

    (h) Appointment of Members.--
            (1) Chairperson and vice-chairperson.--The task force shall 
        have--
                    (A) a Chairperson, appointed by the Administrator; 
                and
                    (B) a Vice-Chairperson, appointed by the 
                Administrator, in consultation with appropriate 
                nongovernmental organizations, entities, or persons.
            (2) Members.--

[[Page 123 STAT. 1760]]

                    (A) Chairperson and vice-chairperson.--The 
                Chairperson and the Vice-Chairperson shall serve as 
                members of the task force.
                    (B) Additional members.--
                          (i) In general.--The task force shall have 
                      additional members, each of whom shall be 
                      appointed by the Chairperson, with the approval of 
                      the Administrator.
                          (ii) Number of members.--The number of 
                      additional members shall be determined by the 
                      Chairperson, in consultation with the 
                      Administrator, except that--
                                    (I) the additional members shall 
                                include, for each of the groups 
                                specified in paragraph (3), at least 1 
                                member appointed from within that group; 
                                and
                                    (II) the number of additional 
                                members shall not exceed 13.
            (3) Groups represented.--The groups specified in this 
        paragraph are--
                    (A) subject matter experts;
                    (B) users of information technologies within small 
                business concerns;
                    (C) vendors of information technologies to small 
                business concerns;
                    (D) academics with expertise in the use of 
                information technologies to support business;
                    (E) small business trade associations;
                    (F) Federal, State, or local agencies, including the 
                Department of Homeland Security, engaged in securing 
                cyberspace; and
                    (G) information technology training providers with 
                expertise in the use of information technologies to 
                support business.
            (4) Political affiliation.--The appointments under this 
        subsection shall be made without regard to political 
        affiliation.

    (i) Meetings.--
            (1) Frequency.--The task force shall meet at least 2 times 
        per year, and more frequently if necessary to perform its 
        duties.
            (2) Quorum.--A majority of the members of the task force 
        shall constitute a quorum.
            (3) Location.--The Administrator shall designate, and make 
        available to the task force, a location at a facility under the 
        control of the Administrator for use by the task force for its 
        meetings.
            (4)  <<NOTE: Deadlines.>> Minutes.--
                    (A) In general.--Not <<NOTE: Federal Register, 
                publication. Recommen-dations.>> later than 30 days 
                after the date of each meeting, the task force shall 
                publish the minutes of the meeting in the Federal 
                Register and shall submit to the Administrator any 
                findings or recommendations approved at the meeting.
                    (B) Submission to congress.--Not later than 60 days 
                after the date that the Administrator receives minutes 
                under subparagraph (A), the Administrator shall submit 
                to the Committee on Small Business and Entrepreneurship 
                of the Senate and the Committee on Small Business of

[[Page 123 STAT. 1761]]

                the House of Representatives such minutes, together with 
                any comments the Administrator considers appropriate.
            (5) <<NOTE: Deadlines. Reports.>>  Findings.--
                    (A) In general.--Not later than the date on which 
                the task force terminates under subsection (m), the task 
                force shall submit to the Administrator a final report 
                on any findings and recommendations of the task force 
                approved at a meeting of the task force.
                    (B) Submission to congress.--Not later than 90 days 
                after the date on which the Administrator receives the 
                report under subparagraph (A), the Administrator shall 
                submit to the Committee on Small Business and 
                Entrepreneurship of the Senate and the Committee on 
                Small Business of the House of Representatives the full 
                text of the report submitted under subparagraph (A), 
                together with any comments the Administrator considers 
                appropriate.

    (j) Personnel Matters.--
            (1) Compensation of members.--Each member of the task force 
        shall serve without pay for their service on the task force.
            (2) Travel expenses.--Each member of the task force shall 
        receive travel expenses, including per diem in lieu of 
        subsistence, in accordance with applicable provisions under 
        subchapter I of chapter 57 of title 5, United States Code.
            (3) Detail of sba employees.--The Administrator may detail, 
        without reimbursement, any of the personnel of the 
        Administration to the task force to assist it in carrying out 
        the duties of the task force. Such a detail shall be without 
        interruption or loss of civil status or privilege.
            (4) SBA support of the task force.--Upon the request of the 
        task force, the Administrator shall provide to the task force 
        the administrative support services that the Administrator and 
        the Chairperson jointly determine to be necessary for the task 
        force to carry out its duties.

    (k) Not Subject to Federal Advisory Committee Act.--The Federal 
Advisory Committee Act (5 U.S.C. App.) shall not apply to the task 
force.
    (l) Startup Deadlines.--The initial appointment of the members of 
the task force shall be completed not later than 90 days after the date 
of enactment of this Act, and the first meeting of the task force shall 
be not later than 180 days after the date of enactment of this Act.
    (m) Termination.--
            (1) In general.--Except as provided in paragraph (2), the 
        task force shall terminate at the end of fiscal year 2013.
            (2) Exception.--If, as of the termination date under 
        paragraph (1), the task force has not complied with subsection 
        (i)(4) with respect to 1 or more meetings, then the task force 
        shall continue after the termination date for the sole purpose 
        of achieving compliance with subsection (i)(4) with respect to 
        those meetings.

    (n) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $300,000 for each of fiscal years 
2010 through 2013.

[[Page 123 STAT. 1762]]

SEC. 508. STUDY AND REPORT ON EMERGENCY PIN TECHNOLOGY.

    (a) In General.--The Federal Trade Commission, in consultation with 
the Attorney General of the United States and the United States Secret 
Service, shall conduct a study on the cost-effectiveness of making 
available at automated teller machines technology that enables a 
consumer that is under duress to electronically alert a local law 
enforcement agency that an incident is taking place at such automated 
teller machine, including--
            (1) an emergency personal identification number that would 
        summon a local law enforcement officer to an automated teller 
        machine when entered into such automated teller machine; and
            (2) a mechanism on the exterior of an automated teller 
        machine that, when pressed, would summon a local law enforcement 
        to such automated teller machine.

    (b) Contents of Study.--The study required under subsection (a) 
shall include--
            (1) an analysis of any technology described in subsection 
        (a) that is currently available or under development;
            (2) an estimate of the number and severity of any crimes 
        that could be prevented by the availability of such technology;
            (3) the estimated costs of implementing such technology; and
            (4) a comparison of the costs and benefits of not fewer than 
        3 types of such technology.

    (c) Report.--Not later than 9 months after the date of enactment of 
this Act, the Federal Trade Commission shall submit to Congress a report 
on the findings of the study required under this section that includes 
such recommendations for legislative action as the Commission determines 
appropriate.
SEC. 509. STUDY AND REPORT ON THE MARKETING OF PRODUCTS WITH 
                        CREDIT OFFERS.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study on the terms, conditions, marketing, and value to 
consumers of products marketed in conjunction with credit card offers, 
including--
            (1) debt suspension agreements;
            (2) debt cancellation agreements; and
            (3) credit insurance products.

    (b) Areas of Concern.--The study conducted under this section shall 
evaluate--
            (1) the suitability of the offer of products described in 
        subsection (a) for target customers;
            (2) the predatory nature of such offers; and
            (3) specifically for debt cancellation or suspension 
        agreements and credit insurance products, loss rates compared to 
        more traditional insurance products.

    (c) Report to Congress.--The Comptroller shall submit a report to 
Congress on the results of the study required by this section not later 
than December 31, 2010.
SEC. 510. FINANCIAL AND ECONOMIC LITERACY.

    (a) Report on Federal Financial and Economic Literacy Education 
Programs.--
            (1) In general.--Not later than 9 months after the date of 
        enactment of this Act, the Secretary of Education and the

[[Page 123 STAT. 1763]]

        Director of the Office of Financial Education of the Department 
        of the Treasury shall coordinate with the President's Advisory 
        Council on Financial Literacy--
                    (A) to evaluate and compile a comprehensive summary 
                of all existing Federal financial and economic literacy 
                education programs, as of the time of the report; and
                    (B) to prepare and submit a report to Congress on 
                the findings of the evaluations.
            (2) Contents.--The report required by this subsection shall 
        address, at a minimum--
                    (A) the 2008 recommendations of the President's 
                Advisory Council on Financial Literacy;
                    (B) existing Federal financial and economic literacy 
                education programs for grades kindergarten through grade 
                12, and annual funding to support these programs;
                    (C) existing Federal postsecondary financial and 
                economic literacy education programs and annual funding 
                to support these programs;
                    (D) the current financial and economic literacy 
                education needs of adults, and in particular, low- and 
                moderate-income adults;
                    (E) ways to incorporate and disseminate best 
                practices and high quality curricula in financial and 
                economic literacy education; and
                    (F) specific recommendations on sources of revenue 
                to support financial and economic literacy education 
                activities with a specific analysis of the potential use 
                of credit card transaction fees.

    (b) Strategic Plan.--
            (1) In general.--The Secretary of Education and the Director 
        of the Office of Financial Education of the Department of the 
        Treasury shall coordinate with the President's Advisory Council 
        on Financial Literacy to develop a strategic plan to improve and 
        expand financial and economic literacy education.
            (2) Contents.--The plan developed under this subsection 
        shall--
                    (A) incorporate findings from the report and 
                evaluations of existing Federal financial and economic 
                literacy education programs under subsection (a); and
                    (B) include proposals to improve, expand, and 
                support financial and economic literacy education based 
                on the findings of the report and evaluations.
            (3) Presentation to congress.--The <<NOTE: Deadline.>> plan 
        developed under this subsection shall be presented to Congress 
        not later than 6 months after the date on which the report under 
        subsection (a) is submitted to Congress.

    (c) Effective Date.--Notwithstanding section 3, this section shall 
become effective on the date of enactment of this Act.
SEC. 511. FEDERAL TRADE COMMISSION RULEMAKING ON MORTGAGE LENDING.

    (a) In <<NOTE: Ante, p. 678.>> General.--Section 626 of division D 
of the Omnibus Appropriations Act, 2009 (Public Law 111-8) is amended--
            (1) in subsection (a)--
                    (A) by striking ``Within'' and inserting ``(1) 
                Within'';
                    (B) in paragraph (1), as designated by subparagraph 
                (A), by inserting after the first sentence the 
                following:

[[Page 123 STAT. 1764]]

                ``Such rulemaking shall relate to unfair or deceptive 
                acts or practices regarding mortgage loans, which may 
                include unfair or deceptive acts or practices involving 
                loan modification and foreclosure rescue services.''; 
                and
                    (C) by adding at the end the following:
            ``(2) Paragraph (1) shall not be construed to authorize the 
        Federal Trade Commission to promulgate a rule with respect to an 
        entity that is not subject to enforcement of the Federal Trade 
        Commission Act (15 U.S.C. 41 et seq.) by the Commission.
            ``(3) <<NOTE: Consultation.>> Before issuing a final rule 
        pursuant to the proceeding initiated under paragraph (1), the 
        Federal Trade Commission shall consult with the Federal Reserve 
        Board concerning any portion of the proposed rule applicable to 
        acts or practices to which the provisions of the Truth in 
        Lending Act (15 U.S.C. 1601 et seq.) may apply.
            ``(4) The Federal Trade Commission shall enforce the rules 
        issued under paragraph (1) in the same manner, by the same 
        means, and with the same jurisdiction, powers, and duties as 
        though all applicable terms and provisions of the Federal Trade 
        Commission Act (15 U.S.C. 41 et seq.) were incorporated into and 
        made part of this section.''; and
            (2) in subsection (b)--
                    (A) by striking so much as precedes paragraph (2) 
                and inserting the following:

    ``(b)(1) Except as provided in paragraph (6), in any case in which 
the attorney general of a State has reason to believe that an interest 
of the residents of that State has been or is threatened or adversely 
affected by the engagement of any person subject to a rule prescribed 
under subsection (a) in a practice that violates such rule, the State, 
as parens patriae, may bring a civil action on behalf of the residents 
of the State in an appropriate district court of the United States or 
other court of competent jurisdiction--
            ``(A) to enjoin that practice;
            ``(B) to enforce compliance with the rule;
            ``(C) to obtain damages, restitution, or other compensation 
        on behalf of residents of the State; or
            ``(D) to obtain penalties and relief provided by the Federal 
        Trade Commission Act and such other relief as the court 
        considers appropriate.''; and
                    (B) in paragraphs (2), (3), and (6), by striking 
                ``Commission'' each place it appears and inserting 
                ``primary Federal regulator''.

    (b) Effective <<NOTE: 15 USC 1638 note.>> Date.--The amendments made 
by subsection (a) shall take effect on March 12, 2009.
SEC. 512. <<NOTE: 16 USC 1a-7b.>> PROTECTING AMERICANS FROM 
                        VIOLENT CRIME.

    (a) Congressional Findings.--Congress finds the following:
            (1) The Second Amendment to the Constitution provides that 
        ``the right of the people to keep and bear Arms, shall not be 
        infringed''.
            (2) Section 2.4(a)(1) of title 36, Code of Federal 
        Regulations, provides that ``except as otherwise provided in 
        this section and parts 7 (special regulations) and 13 (Alaska 
        regulations), the following are prohibited: (i) Possessing a 
        weapon, trap or net (ii) Carrying a weapon, trap or net (iii) 
        Using a weapon, trap or net''.

[[Page 123 STAT. 1765]]

            (3) Section 27.42 of title 50, Code of Federal Regulations, 
        provides that, except in special circumstances, citizens of the 
        United States may not ``possess, use, or transport firearms on 
        national wildlife refuges'' of the United States Fish and 
        Wildlife Service.
            (4) The regulations described in paragraphs (2) and (3) 
        prevent individuals complying with Federal and State laws from 
        exercising the second amendment rights of the individuals while 
        at units of--
                    (A) the National Park System; and
                    (B) the National Wildlife Refuge System.
            (5) The existence of different laws relating to the 
        transportation and possession of firearms at different units of 
        the National Park System and the National Wildlife Refuge System 
        entrapped law-abiding gun owners while at units of the National 
        Park System and the National Wildlife Refuge System.
            (6) Although the Bush administration issued new regulations 
        relating to the Second Amendment rights of law-abiding citizens 
        in units of the National Park System and National Wildlife 
        Refuge System that went into effect on January 9, 2009--
                    (A) on March 19, 2009, the United States District 
                Court for the District of Columbia granted a preliminary 
                injunction with respect to the implementation and 
                enforcement of the new regulations; and
                    (B) the new regulations--
                          (i) are under review by the administration; 
                      and
                          (ii) may be altered.
            (7) Congress needs to weigh in on the new regulations to 
        ensure that unelected bureaucrats and judges cannot again 
        override the Second Amendment rights of law-abiding citizens on 
        83,600,000 acres of National Park System land and 90,790,000 
        acres of land under the jurisdiction of the United States Fish 
        and Wildlife Service.
            (8) The Federal laws should make it clear that the second 
        amendment rights of an individual at a unit of the National Park 
        System or the National Wildlife Refuge System should not be 
        infringed.

    (b) Protecting the Right of Individuals To Bear arms in Units of the 
National Park System and the National Wildlife Refuge System.--The 
Secretary of the Interior shall not promulgate or enforce any regulation 
that prohibits an individual from possessing a firearm including an 
assembled or functional firearm in any unit of the National Park System 
or the National Wildlife Refuge System if--
            (1) the individual is not otherwise prohibited by law from 
        possessing the firearm; and
            (2) the possession of the firearm is in compliance with the 
        law of the State in which the unit of the National Park System 
        or the National Wildlife Refuge System is located.
SEC. 513. GAO STUDY AND REPORT ON FLUENCY IN THE ENGLISH LANGUAGE 
                        AND FINANCIAL LITERACY.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study examining--
            (1) the relationship between fluency in the English language 
        and financial literacy; and

[[Page 123 STAT. 1766]]

            (2) the extent, if any, to which individuals whose native 
        language is a language other than English are impeded in their 
        conduct of their financial affairs.

    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Comptroller General of the United States shall submit a 
report to the Committee on Banking, Housing, and Urban Affairs of the 
Senate and the Committee on Financial Services of the House of 
Representatives that contains a detailed summary of the findings and 
conclusions of the study required under subsection (a).

    Approved May 22, 2009.

LEGISLATIVE HISTORY--H.R. 627 (S. 414):
---------------------------------------------------------------------------

HOUSE REPORTS: No. 111-88 (Comm. on Financial Services).
SENATE REPORTS: No. 111-16 accompanying S. 414 (Comm. on Banking, 
Housing, and Urban Affairs).
CONGRESSIONAL RECORD, Vol. 155 (2009):
            Apr. 29, 30, considered and passed House.
            May 11-14, 19, considered and passed Senate, amended.
            May 20, House concurred in Senate amendment.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2009):
            May 22, Presidential remarks.

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