Protection of Consumer Credit and Consumer Choice Act of 2009

Protection of Consumer Credit and Consumer Choice Act of 2009 - Prohibits the Board of Governors of the Federal Reserve, the Office of Thrift Supervision, and the National Credit Union Administration from taking any action to implement any rule relating to credit cards published in the Federal Register on January 29, 2009, or any substantially similar rule, on the basis of a determination by such agencies that practices relating to credit card practices constitute an unfair act or practice in or affecting commerce.

Amends the Truth in Lending Act to direct the Board to issue regulations with respect to credit card accounts under an open end consumer credit plan to require a card issuer to provide clear and conspicuous disclosures pertaining to: (1) the time provided to make timely payments; (2) allocation of payments when different annual percentage rates (APRs) apply to different balances of such accounts; (3) increases in APRs; (4) two-cycle average daily balance method of balance calculation; and (5) fees that may be assessed at the opening of such accounts.

Requires a credit card issuer to provide advance written notice of a change in such terms before it takes effect, with certain exceptions.

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2327 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 2327

 To preserve consumer choice and access to credit and enhance consumer 
                              disclosures.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 7, 2009

Mr. Hensarling (for himself, Mr. Burgess, Mr. Bishop of Utah, Mr. Kline 
 of Minnesota, Mr. Conaway, Mr. Shadegg, Mr. Pitts, Mr. Garrett of New 
  Jersey, Mr. Brady of Texas, Mr. McKeon, Mr. Gingrey of Georgia, Mr. 
  Olson, Mr. Gohmert, Mr. Poe of Texas, Mr. Fleming, Mrs. Lummis, Mr. 
   Marchant, Mr. Neugebauer, Mr. Posey, and Ms. Foxx) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
 To preserve consumer choice and access to credit and enhance consumer 
                              disclosures.

    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 ``Protection of Consumer Credit and 
Consumer Choice Act of 2009''.

SEC. 2. UNFAIR ACTS OR PRACTICES RULE REVISION.

    The Board of Governors of the Federal Reserve, the Office of Thrift 
Supervision, and the National Credit Union Administration shall not 
take any action to implement any rule relating to credit cards 
published in the Federal Register on January 29, 2009, or any 
substantially similar rule, on the basis of a determination by such 
agencies that practices relating to credit card practices constitute an 
unfair act or practice in or affecting commerce.

SEC. 3. IMPROVING CONSUMER DISCLOSURES.

    Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is amended 
by adding at the end the following new subsection:
    ``(i) Advance Notice of Rate Increases for Certain Practices.--
            ``(1) In general.--With respect to credit card accounts 
        under an open end consumer credit plan, the Board shall issue 
        regulations under subsections (a), (b), and (c), as the Board 
        may find appropriate and necessary, to require a card issuer to 
        provide clear and conspicuous disclosures pertaining to:
                    ``(A) the time provided to make timely payments;
                    ``(B) allocation of payments when different annual 
                percentage rates apply to different balances of such 
                accounts;
                    ``(C) increases in annual percentage rates;
                    ``(D) two-cycle average daily balance method of 
                balance calculation; and
                    ``(E) fees that may be assessed at the opening of 
                such accounts.
            ``(2) Advance notice for certain changes.--
                    ``(A) In general.--A change to any term described 
                in paragraph (1), or, in the case of paragraph (1)(C), 
                an increase of an annual percentage rate, with respect 
                to a credit card account under an open end consumer 
                credit plan may not take effect unless the card issuer 
                provides a written notice to the consumer no less than 
                75 days before such change is scheduled to take effect 
                which fully describes the change in a clear and 
                conspicuous manner.
                    ``(B) Exception.--Any disclosure under subparagraph 
                (A) shall not be required with respect to an increase 
                in an annual percentage rate if:
                            ``(i) the increase is due to the operation 
                        of an index outside the control of the card 
                        issuers;
                            ``(ii) the increase is due to an expiration 
                        of a promotional rate; and
                            ``(iii) the rate was previously disclosed 
                        pursuant to subsection (a).''.

SEC. 4. EFFECTIVE DATE.

    (a) Section 2 of this Act is effective on the date of enactment of 
this Act.
    (b) The Board shall issue the regulations under section 3 within 12 
months of the date of enactment of this Act.
    (c) The regulations issued by the Board under section 3 shall be 
effective 12 months after they are published in final form.
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