Credit Card Accountability Responsibility and Disclosure Act of 2009

PUBLIC LAW 111–24—MAY 22, 2009

CREDIT CARD ACCOUNTABILITY

RESPONSIBILITY AND DISCLOSURE ACT OF

2009

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123 STAT. 1734 PUBLIC LAW 111–24—MAY 22, 2009

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.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) S

HORT

ITLE

.—This Act may be cited as the ‘‘Credit Card

Accountability Responsibility and Disclosure Act of 2009’’ or the

‘‘Credit CARD Act of 2009’’.

(b) T

ABLE OF

ONTENTS

.—

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.

15 USC 1601

note.

Credit Card

Accountability

Responsibility

and Disclosure

Act of 2009.

May 22, 2009

[H.R. 627]

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123 STAT. 1735 PUBLIC LAW 111–24—MAY 22, 2009

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. 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. 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) A

DVANCE

OTICE OF

ATE

NCREASE AND

THER

HANGES

EQUIRED

.—

(1) A

MENDMENT 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) A

DVANCE

OTICE OF

ATE

NCREASE AND

THER

HANGES

EQUIRED

.—

‘‘(1) A

DVANCE NOTICE OF INCREASE IN INTEREST RATE

REQUIRED

.—In the case of any credit card account under an

open end consumer credit plan, a creditor shall provide a writ-

ten 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) A

DVANCE NOTICE OF OTHER SIGNIFICANT CHANGES

REQUIRED

.—In the case of any credit card account under an

open end consumer credit plan, a creditor shall provide a writ-

ten 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) N

OTICE 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) R

ULE OF CONSTRUCTION

.—Closure or cancellation of

an account by the obligor shall not constitute a default under

Deadline.

15 USC 1602

note.

15 USC 1602

note.

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123 STAT. 1736 PUBLIC LAW 111–24—MAY 22, 2009

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) E

FFECTIVE 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) R

ETROACTIVE

NCREASE AND

NIVERSAL

EFAULT

ROHIB

ITED

.—Chapter 4 of the Truth in Lending Act (15 U.S.C. 1666

et seq.) is amended—

(1) by redesignating section 171 as section 173; and

(2) by inserting after section 170 the following:

‘‘SEC. 171. LIMITS ON INTEREST RATE, FEE, AND FINANCE CHARGE

INCREASES APPLICABLE TO OUTSTANDING BALANCES.

‘‘(a) I

ENERAL

.—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) E

XCEPTIONS

.—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 tem-

porary 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);

‘‘(4) an increase due solely to the fact that a minimum

payment by the obligor has not been received by the creditor

Deadlines.

15 USC 1666i–1.

15 USC 1666j.

15 USC 1637

note.

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123 STAT. 1737 PUBLIC LAW 111–24—MAY 22, 2009

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 writ-

ten 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) R

EPAYMENT OF

UTSTANDING

ALANCE

.—

‘‘(1) I

N 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) M

ETHODS

.—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) O

UTSTANDING

ALANCE

EFINED

.—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).’’.

NTEREST

ATE

EDUCTION ON

PEN

ONSUMER

REDIT

LANS

.—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. INTEREST RATE REDUCTION ON OPEN END CONSUMER

CREDIT PLANS.

‘‘(a) I

ENERAL

.—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) R

EQUIREMENTS

.—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) 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);

Deadlines.

Review.

15 USC 1665c.

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123 STAT. 1738 PUBLIC LAW 111–24—MAY 22, 2009

‘‘(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) R

ULE OF

ONSTRUCTION

.—This section shall not be con-

strued to require a reduction in any specific amount.

‘‘(d) R

ULEMAKING

.—The Board shall issue final rules not later

than 9 months after the date of enactment of this section to imple-

ment 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) I

NTRODUCTORY AND

ROMOTIONAL

ATES

.—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. ADDITIONAL LIMITS ON INTEREST RATE INCREASES.

‘‘(a) L

IMITATION ON

NCREASES

ITHIN

IRST

EAR

.—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) P

ROMOTIONAL

ATE

INIMUM

ERM

.—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) C

LERICAL

MENDMENT

.—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 out-

standing balances.

‘‘172. Additional limits on interest rate increases.

‘‘173. Applicability of State laws.’’.

SEC. 102. LIMITS ON FEES AND INTEREST CHARGES.

(a) I

ENERAL

.—Section 127 of the Truth in Lending Act

(15 U.S.C. 1637) is amended by adding at the end the following:

‘‘(j) P

ROHIBITION ON

ENALTIES FOR

-T

IME

AYMENTS

.—

‘‘(1) P

ROHIBITION 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) E

XCEPTIONS

.—Paragraph (1) does not apply to—

‘‘(A) any adjustment to a finance charge as a result

of the resolution of a dispute; or

Time periods.

15 USC 1666i–2.

Deadline.

Effective date.

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123 STAT. 1739 PUBLIC LAW 111–24—MAY 22, 2009

‘‘(B) any adjustment to a finance charge as a result

of the return of a payment for insufficient funds.

‘‘(k) O

EQUIRED FOR

VER

THE

-L

IMIT

RANSACTIONS IF

EES

MPOSED

.—

‘‘(1) I

N 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 cred-

itor, 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) D

ISCLOSURE 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) F

ORM 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 elec-

tion.

‘‘(4) T

IME 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) R

EGULATIONS

.—The Board shall prescribe regula-

tions—

‘‘(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) R

ULE 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) R

ESTRICTION 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.

Regulations.

Notice.

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123 STAT. 1740 PUBLIC LAW 111–24—MAY 22, 2009

‘‘(l) L

IMIT ON

EES

ELATED TO

ETHOD OF

AYMENT

.—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) R

EASONABLE

ENALTY

EES

.—

(1) I

N 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. REASONABLE PENALTY FEES ON OPEN END CONSUMER

CREDIT PLANS.

‘‘(a) I

ENERAL

.—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) R

ULEMAKING

EQUIRED

.—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, 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 (a) shall

become effective 15 months after the date of enactment of this

section.

‘‘(c) C

ONSIDERATIONS

.—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) D

IFFERENTIATION

ERMITTED

.—In issuing rules required

by this subsection, the Board may establish different standards

for different types of fees and charges, as appropriate.

‘‘(e) S

AFE

ARBOR

ULE

UTHORIZED

.—The Board, in consulta-

tion 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) C

LERICAL 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

Effective date.

Deadline.

15 USC 1665d.

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123 STAT. 1741 PUBLIC LAW 111–24—MAY 22, 2009

(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) U

SE OF

ERM

‘F

IXED

ATE

’.—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 ref-

erence 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 conspicu-

ously 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:

‘‘§ 164. Prompt and fair crediting of payments

‘‘(a) I

ENERAL

.—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) A

PPLICATION OF

AYMENTS

.—

‘‘(1) I

N GENERAL

.—Upon receipt of a payment from a card-

holder, 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) C

LARIFICATION RELATING TO CERTAIN DEFERRED

INTEREST ARRANGEMENTS

.—A creditor shall allocate the entire

amount paid by the consumer in excess of the minimum pay-

ment 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) C

HANGES BY

ARD

SSUER

.—If a card issuer makes a mate-

rial 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:

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123 STAT. 1742 PUBLIC LAW 111–24—MAY 22, 2009

‘‘(n) S

TANDARDS

PPLICABLE TO

NITIAL

SSUANCE OF

UBPRIME

‘F

ARVESTER

’ C

ARDS

.—

‘‘(1) I

N 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 con-

sumer 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) R

ULE OF CONSTRUCTION

.—No provision of this sub-

section 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) I

ENERAL

.—Section 127 of the Truth in Lending Act

(15 U.S.C. 1637) is amended by adding at the end the following:

‘‘(o) D

ATES FOR

REDIT

ARD

CCOUNTS

.—

‘‘(1) I

N 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) W

EEKEND 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) L

ENGTH OF

ILLING

ERIOD

.—

(1) I

N GENERAL

.—Section 163 of the Truth in Lending

Act (15 U.S.C. 1666b) is amended to read as follows:

‘‘SEC. 163. TIMING OF PAYMENTS.

‘‘(a) T

IME

AKE

AYMENTS

.—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) G

RACE

ERIOD

.—If an open end consumer credit plan pro-

vides 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) E

FFECTIVE 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.

LERICAL

MENDMENTS

.—The table of sections for chapter

4 of the Truth in Lending Act is amended—

15 USC 1666b

note.

Deadlines.

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123 STAT. 1743 PUBLIC LAW 111–24—MAY 22, 2009

(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 con-

sumer credit plan’’ after ‘‘credit plan’’ each place that term

appears.

SEC. 109. CONSIDERATION OF ABILITY TO REPAY.

(a) I

ENERAL

.—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. 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) C

LERICAL

MENDMENT

.—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) I

ENERAL

.—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: ‘Min-

imum Payment Warning: Making only the minimum payment

will increase the amount of interest you pay and the time

15 USC 1665e.

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123 STAT. 1744 PUBLIC LAW 111–24—MAY 22, 2009

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 out-

standing 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 min-

imum 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 con-

sumer may receive information about accessing credit coun-

seling 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) 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 subpara-

graph (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

Regulations.

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123 STAT. 1745 PUBLIC LAW 111–24—MAY 22, 2009

‘‘(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 subpara-

graph (D), the Board shall employ terminology which is dif-

ferent than the terminology which is employed in subparagraph

(B), if such terminology is more easily understood and conveys

substantially the same meaning.’’.

(b) C

IVIL

IABILITY

.—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).’’.

UIDELINES

EQUIRED

.—

(1) I

N GENERAL

.—Not 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 serv-

ices, as required under section 127(b)(11)(B)(iv) of the Truth

in Lending Act, as added by this section.

(2) A

PPROVED AGENCIES

.—Guidelines issued under this sub-

section 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) R

EQUIREMENTS RELATING TO LATE PAYMENT DEAD

LINES AND PENALTIES

.—

‘‘(A) L

ATE PAYMENT DEADLINE REQUIRED TO BE DIS

CLOSED

.—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 pay-

ment, the periodic statement required under subsection

(b) with respect to the account shall include, in a con-

spicuous 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) D

ISCLOSURE OF INCREASE IN INTEREST RATES FOR

LATE PAYMENTS

.—If 1 or more late payments under an

Notice.

Deadline.

Communications

and tele-

communications.

15 USC 1637

note.

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123 STAT. 1746 PUBLIC LAW 111–24—MAY 22, 2009

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 percent-

age 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) P

AYMENTS AT LOCAL BRANCHES

.—If the creditor,

in the case of a credit card account referred to in subpara-

graph (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) I

ENERAL

.—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) A

DDITIONAL

LECTRONIC

ISCLOSURES

.—

‘‘(1) P

OSTING AGREEMENTS

.—Each creditor shall establish

and maintain an Internet site on which the creditor shall

post the written agreement between the creditor and the con-

sumer for each credit card account under an open-end consumer

credit plan.

‘‘(2) C

REDITOR 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) R

ECORD REPOSITORY

.—The Board shall establish and

maintain on its publicly available Internet site a central reposi-

tory 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) E

XCEPTION

.—This subsection shall not apply to individ-

ually negotiated changes to contractual terms, such as individ-

ually modified workouts or renegotiations of amounts owed

by a consumer under an open end consumer credit plan.

‘‘(5) R

EGULATIONS

.—The Board, in consultation with the

other Federal banking agencies (as that term is defined in

Public

information.

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123 STAT. 1747 PUBLIC LAW 111–24—MAY 22, 2009

section 603) and the Federal Trade Commission, may promul-

gate regulations to implement this subsection, including speci-

fying 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) P

REVENTING

ECEPTIVE

ARKETING

.—Section 612 of the

Fair Credit Reporting Act (15 U.S.C. 1681j) is amended by adding

at the end the following:

‘‘(g) P

REVENTION OF

ECEPTIVE

ARKETING OF

REDIT

EPORTS

.—

‘‘(1) I

N GENERAL

.—Subject to rulemaking pursuant to sec-

tion 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) T

ELEVISION 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) R

ULEMAKING

.—

(1) I

N GENERAL

.—Not 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) C

ONTENT

.—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) I

NTERIM 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:

Deadline.

15 USC 1681j

note.

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123 STAT. 1748 PUBLIC LAW 111–24—MAY 22, 2009

‘‘(8) A

PPLICATIONS FROM UNDERAGE CONSUMERS

.—

‘‘(A) P

ROHIBITION 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) A

PPLICATION 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, indi-

cating an independent means of repaying any obliga-

tion arising from the proposed extension of credit in

connection with the account.

‘‘(C) S

AFE HARBOR

.—The Board shall promulgate regu-

lations 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 STU-

DENTS.

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) P

ARENTAL

PPROVAL

EQUIRED

NCREASE

REDIT

INES

FOR

CCOUNTS FOR

HICH

ARENT

OINTLY

IABLE

.—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.’’.

Regulations.

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123 STAT. 1749 PUBLIC LAW 111–24—MAY 22, 2009

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) C

REDIT

ARD

ROTECTIONS FOR

OLLEGE

TUDENTS

.—

‘‘(1) D

ISCLOSURE REQUIRED

.—An institution of higher edu-

cation shall publicly disclose any contract or other agreement

made with a card issuer or creditor for the purpose of marketing

a credit card.

‘‘(2) I

NDUCEMENTS 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 partici-

pate 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 edu-

cation;

‘‘(B) near the campus of an institution of higher edu-

cation, as determined by rule of the Board; or

‘‘(C) at an event sponsored by or related to an institu-

tion of higher education.

‘‘(3) S

ENSE OF THE CONGRESS

.—It is the sense of the Con-

gress 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) I

ENERAL

.—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) C

OLLEGE

ARD

GREEMENTS

.—

‘‘(1) D

EFINITIONS

.—For purposes of this subsection, the fol-

lowing definitions shall apply:

‘‘(A) C

OLLEGE 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 conjunc-

tion with an agreement between the issuer and an institu-

tion 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

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123 STAT. 1750 PUBLIC LAW 111–24—MAY 22, 2009

identified with such institution, organization, or

foundation.

‘‘(B) C

OLLEGE 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) C

OLLEGE 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) I

NSTITUTION 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) R

EPORTS BY CREDITORS

.—

‘‘(A) I

N GENERAL

.—Each creditor shall submit an

annual report to the Board containing the terms and condi-

tions of all business, marketing, and promotional agree-

ments and college affinity card agreements with an institu-

tion 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) D

ETAILS 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 deter-

mined; 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) A

GGREGATION BY INSTITUTION

.—The information

required to be reported under subparagraph (A) shall be

aggregated with respect to each institution of higher edu-

cation or alumni organization or foundation affiliated with

or related to such institution.

‘‘(D) I

NITIAL 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) R

EPORTS BY BOARD

.—The 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) S

TUDY AND

EPORT BY THE

OMPTROLLER

ENERAL

.—

15 USC 1637

note.

Public

information.

Time period.

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123 STAT. 1751 PUBLIC LAW 111–24—MAY 22, 2009

(1) S

TUDY

.—The Comptroller General of the United States

shall, from time to time, review the reports submitted by credi-

tors 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) R

EPORT

.—Upon completion of any study under para-

graph (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 administra-

tive 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 through 921 as sections

916 through 922, respectively; and

(2) by inserting after section 914 the following:

‘‘SEC. 915. GENERAL-USE PREPAID CARDS, GIFT CERTIFICATES, AND

STORE GIFT CARDS.

‘‘(a) D

EFINITIONS

.—In this section, the following definitions

shall apply:

‘‘(1) D

ORMANCY 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 certifi-

cate, store gift card, or general-use prepaid card.

‘‘(2) G

ENERAL USE PREPAID CARD

GIFT CERTIFICATE

AND

STORE GIFT CARD

.—

‘‘(A) G

ENERAL

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) G

IFT CERTIFICATE

.—The term ‘gift certificate’

means an electronic promise that is—

‘‘(i) redeemable at a single merchant or an affili-

ated 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

15 USC 1693l–1.

15 USC 1693

note, 1693m–

1693r.

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123 STAT. 1752 PUBLIC LAW 111–24—MAY 22, 2009

‘‘(iv) honored upon presentation by such single

merchant or affiliated group of merchants for goods

or services.

‘‘(C) S

TORE 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 affili-

ated 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) E

XCLUSIONS

.—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;

‘‘(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) S

ERVICE FEE

.—

‘‘(A) I

N GENERAL

.—The term ‘service fee’ means a peri-

odic fee, charge, or penalty for holding or use of a gift

certificate, store gift card, or general-use prepaid card.

‘‘(B) E

XCLUSION

.—With respect to a general-use pre-

paid card, the term ‘service fee’ does not include a one-

time initial issuance fee.

‘‘(b) P

ROHIBITION ON

MPOSITION OF

EES OR

HARGES

.—

‘‘(1) I

N 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) E

XCEPTIONS

.—A dormancy fee, inactivity charge or

fee, or service fee may be charged with respect to a gift certifi-

cate, store gift card, or general-use prepaid card, if—

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123 STAT. 1753 PUBLIC LAW 111–24—MAY 22, 2009

‘‘(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) D

ISCLOSURE REQUIREMENTS

.—The disclosure require-

ments 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) E

XCLUSION

.—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) P

ROHIBITION ON

ALE OF

IFT

ARDS

ITH

XPIRATION

ATES

.—

‘‘(1) I

N 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) E

XCEPTIONS

.—A gift certificate, store gift card, or gen-

eral-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 conspicu-

ously stated.

‘‘(d) A

DDITIONAL

ULEMAKING

.—

‘‘(1) I

N GENERAL

.—The Board shall—

‘‘(A) prescribe regulations to carry out this section,

in addition to any other rules or regulations required by

this title, including such additional requirements as appro-

priate 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

Regulations.

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123 STAT. 1754 PUBLIC LAW 111–24—MAY 22, 2009

‘‘(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) C

ONSULTATION

.—In prescribing regulations under this

subsection, the Board shall consult with the Federal Trade

Commission.

‘‘(3) T

IMING

;

EFFECTIVE DATE

.—The 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 (as redesig-

nated 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. 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) S

TUDY

EQUIRED

.—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) S

UBJECTS FOR

EVIEW

.—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 inter-

change 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

15 USC 1693l–1

note.

15 USC 1693q.

Deadline.

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123 STAT. 1755 PUBLIC LAW 111–24—MAY 22, 2009

(9) the extent to which interchange fees allow smaller

financial institutions and credit unions to offer payment cards

and compete against larger financial institutions.

EPORT

EQUIRED

.—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. BOARD REVIEW OF CONSUMER CREDIT PLANS AND REGULA-

TIONS.

(a) R

EQUIRED

EVIEW

.—Not later than 2 years after the effec-

tive 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;

(D) credit card product innovation.

(b) S

OLICITATION OF

UBLIC

OMMENT

.—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.

EGULATIONS

.—

(1) N

OTICE

.—Following the review required by subsection

(a), the Board shall publish a notice in the Federal Register

that—

(A) summarizes the review, the comments received

from the public solicitation, and other evidence gathered

by the Board, such as through consumer testing or other

research; and

(B) either—

(i) proposes new or revised regulations or

interpretations to update or revise disclosures and

protections for consumer credit cards, as appropriate;

(ii) states the reason for the determination of the

Board that new or revised regulations are not nec-

essary.

(2) R

EVISION OF REVIEW PERIOD FOLLOWING MATERIAL REVI

SION 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

Federal Register,

publication.

Deadlines.

15 USC 1616.

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123 STAT. 1756 PUBLIC LAW 111–24—MAY 22, 2009

as the new date for the biennial review required by subsection

(a).

(d) B

OARD

EPORT TO THE

ONGRESS

.—The Board shall report

to Congress not less frequently than every 2 years, except as pro-

vided 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) A

DDITIONAL

EPORTING

.—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 regula-

tions 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 ‘‘Regula-

tion AA’’).

SEC. 503. STORED VALUE.

(a) I

ENERAL

.—Not 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) C

ONSIDERATION OF

NTERNATIONAL

RANSPORT

.—Regula-

tions under this section regarding international transport of stored

value may include reporting requirements pursuant to section 5316

of title 31, United States Code.

MERGING

ETHODS FOR

RANSMITTAL AND

TORAGE IN

LECTRONIC

ORM

.—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) I

ENERAL

.—Chapter 2 of the Truth in Lending Act (

U.S.C. 1631 et seq.) is amended by adding at the end the following

new section:

‘‘§ 140A Procedure for timely settlement of estates of

decedent obligors

‘‘The Board, in consultation with the Federal Trade Commission

and each other agency referred to in section 108(a), shall prescribe

regulations to require any creditor, with respect to any credit card

account under an open end consumer credit plan, to establish proce-

dures 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.’’.

Regulations.

15 USC 1651.

15 USC 1631 et

seq.

Deadline.

Regulations.

31 USC 5311

note.

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123 STAT. 1757 PUBLIC LAW 111–24—MAY 22, 2009

(b) C

LERICAL

MENDMENT

.—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 CON-

SUMER.

(a) R

EPORT ON

REDITOR

RACTICES

EQUIRED

.—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 Fed-

eral 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) O

THER

NFORMATION

.—The report required under subsection

(a) shall also include—

(1) the number of creditors that have engaged in the prac-

tices described in subsection (a);

(2) the extent to which the practices described in subsection

(a) have an adverse impact on minority or low-income con-

sumers;

(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) R

EQUIRED

EVIEW

.—Not 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;

Deadline.

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123 STAT. 1758 PUBLIC LAW 111–24—MAY 22, 2009

(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) R

ECOMMENDATIONS

.—Following the review required by sub-

section (a), the Board shall, not later than 12 months after the

date of enactment of this Act—

(1) 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) D

EFINITIONS

.—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) E

STABLISHMENT

.—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.

UTIES

.—The 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—

Recommen-

dations.

Reports.

Deadline.

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123 STAT. 1759 PUBLIC LAW 111–24—MAY 22, 2009

(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

(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) I

NTERNET

EBSITE

ECOMMENDATIONS

.—The task force

shall make recommendations to the Administrator relating to the

establishment of an Internet website to be used by the Administra-

tion 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) E

DUCATION

ROGRAMS

.—The task force shall make rec-

ommendations to the Administrator relating to developing addi-

tional education materials and programs with respect to the needs

identified under subsection (c)(1)(A).

(f) E

XISTING

ATERIALS

.—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) C

OORDINATION

ITH

UBLIC AND

RIVATE

ECTOR

.—In car-

rying 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) A

PPOINTMENT OF

EMBERS

.—

(1) C

HAIRPERSON AND VICE

CHAIRPERSON

.—The task force

shall have—

(A) a Chairperson, appointed by the Administrator;

and

(B) a Vice-Chairperson, appointed by the Adminis-

trator, in consultation with appropriate nongovernmental

organizations, entities, or persons.

(2) M

EMBERS

.—

Recommen-

dations.

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123 STAT. 1760 PUBLIC LAW 111–24—MAY 22, 2009

(A) C

HAIRPERSON AND VICE

CHAIRPERSON

.—The Chair-

person and the Vice-Chairperson shall serve as members

of the task force.

(B) A

DDITIONAL MEMBERS

.—

(i) I

N GENERAL

.—The task force shall have addi-

tional members, each of whom shall be appointed by

the Chairperson, with the approval of the Adminis-

trator.

(ii) N

UMBER OF MEMBERS

.—The number of addi-

tional members shall be determined by the Chair-

person, 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) G

ROUPS REPRESENTED

.—The groups specified in this

paragraph are—

(A) subject matter experts;

(B) users of information technologies within small busi-

ness 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) P

OLITICAL AFFILIATION

.—The appointments under this

subsection shall be made without regard to political affiliation.

(i) M

EETINGS

.—

(1) F

REQUENCY

.—The task force shall meet at least 2 times

per year, and more frequently if necessary to perform its duties.

(2) Q

UORUM

.—A majority of the members of the task force

shall constitute a quorum.

(3) L

OCATION

.—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) M

INUTES

.—

(A) I

N GENERAL

.—Not 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 recommenda-

tions approved at the meeting.

(B) S

UBMISSION 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

Federal Register,

publication.

Recommen-

dations.

Deadlines.

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123 STAT. 1761 PUBLIC LAW 111–24—MAY 22, 2009

the House of Representatives such minutes, together with

any comments the Administrator considers appropriate.

(5) F

INDINGS

.—

(A) I

N 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) S

UBMISSION 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) P

ERSONNEL

ATTERS

.—

(1) C

OMPENSATION OF MEMBERS

.—Each member of the task

force shall serve without pay for their service on the task

force.

(2) T

RAVEL EXPENSES

.—Each member of the task force shall

receive travel expenses, including per diem in lieu of subsist-

ence, in accordance with applicable provisions under subchapter

I of chapter 57 of title 5, United States Code.

(3) D

ETAIL 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) N

UBJECT TO

EDERAL

DVISORY

OMMITTEE

.—

The Federal Advisory Committee Act (5 U.S.C. App.) shall not

apply to the task force.

(l) S

TARTUP

EADLINES

.—The initial appointment of the mem-

bers 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) T

ERMINATION

.—

(1) I

N GENERAL

.—Except as provided in paragraph (2), the

task force shall terminate at the end of fiscal year 2013.

(2) E

XCEPTION

.—If, as of the termination date under para-

graph (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) A

UTHORIZATION OF

PPROPRIATIONS

.—There is authorized

to be appropriated to carry out this section $300,000 for each

of fiscal years 2010 through 2013.

Deadlines.

Reports.

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123 STAT. 1762 PUBLIC LAW 111–24—MAY 22, 2009

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

(a) I

ENERAL

.—The Federal Trade Commission, in consulta-

tion 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 enforce-

ment to such automated teller machine.

(b) C

ONTENTS OF

TUDY

.—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.

EPORT

.—Not later than 9 months after the date of enact-

ment 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) S

TUDY

.—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) A

REAS OF

ONCERN

.—The study conducted under this sec-

tion 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 agree-

ments and credit insurance products, loss rates compared to

more traditional insurance products.

EPORT TO

ONGRESS

.—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) R

EPORT ON

EDERAL

INANCIAL AND

CONOMIC

ITERACY

DUCATION

ROGRAMS

.—

(1) I

N GENERAL

.—Not later than 9 months after the date

of enactment of this Act, the Secretary of Education and the

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123 STAT. 1763 PUBLIC LAW 111–24—MAY 22, 2009

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 edu-

cation 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) C

ONTENTS

.—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;

nomic literacy education programs and annual funding to

support these programs;

(D) the current financial and economic literacy edu-

cation needs of adults, and in particular, low- and mod-

erate-income adults;

(E) ways to incorporate and disseminate best practices

and high quality curricula in financial and economic lit-

eracy education; and

(F) specific recommendations on sources of revenue

to support financial and economic literacy education activi-

ties with a specific analysis of the potential use of credit

card transaction fees.

(b) S

TRATEGIC

LAN

.—

(1) I

N 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) C

ONTENTS

.—The plan developed under this subsection

shall—

(A) incorporate findings from the report and evalua-

tions 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) P

RESENTATION TO CONGRESS

.—The plan developed

under this subsection shall be presented to Congress not later

than 6 months after the date on which the report under sub-

section (a) is submitted to Congress.

FFECTIVE

ATE

.—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) I

ENERAL

.—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:

Ante, p. 678.

Deadline.

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123 STAT. 1764 PUBLIC LAW 111–24—MAY 22, 2009

‘‘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 modifica-

tion and foreclosure rescue services.’’; and

‘‘(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 Commis-

sion.

‘‘(3) 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 con-

siders appropriate.’’; and

(B) in paragraphs (2), (3), and (6), by striking ‘‘Commis-

sion’’ each place it appears and inserting ‘‘primary Federal

regulator’’.

(b) E

FFECTIVE

ATE

.—The amendments made by subsection

(a) shall take effect on March 12, 2009.

SEC. 512. PROTECTING AMERICANS FROM VIOLENT CRIME.

(a) C

ONGRESSIONAL

INDINGS

.—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’’.

16 USC 1a–7b.

15 USC 1638

note.

Consultation.

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123 STAT. 1765 PUBLIC LAW 111–24—MAY 22, 2009

(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 transpor-

tation 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 regula-

tions 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 enforce-

ment 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) P

ROTECTING THE

IGHT OF

NDIVIDUALS

EAR ARMS

NITS OF THE

ATIONAL

ARK

YSTEM AND THE

ATIONAL

ILD

LIFE

EFUGE

YSTEM

.—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) S

TUDY

.—The Comptroller General of the United States shall

conduct a study examining—

(1) the relationship between fluency in the English lan-

guage and financial literacy; and

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123 STAT. 1766 PUBLIC LAW 111–24—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.

(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) R

EPORT

.—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 sub-

section (a).

Approved May 22, 2009.

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123 STAT. 2998 PUBLIC LAW 111–93—NOV. 6, 2009

LEGISLATIVE HISTORY—H.R. 3606:

CONGRESSIONAL RECORD, Vol. 155 (2009):

Oct. 13, considered and passed House.

Oct. 29, considered and passed Senate.

Public Law 111–93

111th Congress

An Act

To amend the Truth in Lending Act to make a technical correction to an amendment

made by the Credit CARD Act of 2009.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Credit CARD Technical Correc-

tions Act of 2009’’.

SEC. 2. TECHNICAL CORRECTION.

Section 163(a) of the Truth in Lending Act (U.S.C. 1666b(a)),

as amended by section 106(b) of the Credit Card Accountability

Responsibility and Disclosure Act of 2009, is amended by inserting

‘‘a credit card account under’’ after ‘‘payment on’’.

Approved November 6, 2009.

15 USC 1666b.

Credit CARD

Technical

Corrections Act

of 2009.

15 USC 1601

note.

Nov. 6, 2009

[H.R. 3606]

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124 STAT. 2254 PUBLIC LAW 111–209—JULY 27, 2010

Public Law 111–209

111th Congress

An Act

To amend the effective date of the gift card provisions of the Credit Card Account-

ability Responsibility and Disclosure Act of 2009.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. DELAY OF EFFECTIVE DATE.

Title IV of the Credit Card Accountability Responsibility and

Disclosure Act, is amended by striking section 403 and inserting

the following:

‘‘SEC. 403. EFFECTIVE DATE.

‘‘(a) I

ENERAL

.—Except as provided under subsection (b)

of this section, this title and the amendments made by this title

shall become effective 15 months after the date of enactment of

this Act.

‘‘(b) E

XCEPTION

.—

‘‘(1) I

N GENERAL

.—In the case of a gift certificate, store

gift card, or general-use prepaid card that was produced prior

to April 1, 2010, the effective date of the disclosure require-

ments described in sections 915(b)(3) and (c)(2)(B) of the Elec-

tronic Funds Transfer Act shall be January 31, 2011, provided

that an issuer of such a certificate or card shall—

‘‘(A) comply with paragraphs (1) and (2) of section

915(b) of such Act;

‘‘(B) consider any such certificate or card for which

funds expire to have no expiration date with respect to

the underlying funds;

‘‘(C) at a consumer’s request, replace such certificate

or card that has funds remaining at no cost to the con-

sumer; and

‘‘(D) comply with the disclosure requirements of para-

graph (2) of this subsection.

‘‘(2) D

ISCLOSURE REQUIREMENTS

.—The disclosure require-

ments of this subsection are met by providing notice to con-

sumers, via in-store signage, messages during customer service

calls, Web sites, and general advertising, that—

‘‘(A) any such certificate or card for which funds expire

shall be deemed to have no expiration date with respect

to the underlying funds;

‘‘(B) consumers holding such certificate or card shall

have a right to a free replacement certificate or card that

includes the packaging and materials, typically associated

with such a certificate or card; and

Notice.

Web posting.

15 USC 1693l–1

note.

July 27, 2010

[H.R. 5502]

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124 STAT. 2255 PUBLIC LAW 111–209—JULY 27, 2010

LEGISLATIVE HISTORY—H.R. 5502:

CONGRESSIONAL RECORD, Vol. 156 (2010):

June 14, considered and passed House.

July 13, considered and passed Senate.

‘‘(C) any dormancy fee, inactivity fee, or service fee

for such certificates or cards that might otherwise be

charged shall not be charged if such fees do not comply

with section 915 of the Electronic Funds Transfer Act.

‘‘(3) P

ERIOD FOR DISCLOSURE REQUIREMENTS

.—The notice

requirements in paragraph (2) of this subsection shall continue

until January 31, 2013.’’.

Approved July 27, 2010.

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