H.R.5244 - Credit Cardholders' Bill of Rights Act of 2008

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. view all titles (4)

All Bill Titles

  • Short: Credit Cardholders' Bill of Rights Act of 2008 as passed house.
  • Short: Credit Cardholders' Bill of Rights Act of 2008 as reported to house.
  • Short: Credit Cardholders' Bill of Rights Act of 2008 as introduced.
  • Official: 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. as introduced.

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Introduced
 
House
Passed
 
Senate
Passes
 
President
Signs
 

 
02/07/08
 
09/23/08
 
 
 
 
 

Sponsor

Representative

Carolyn Maloney

D-NY

View Co-Sponsors (155)
 

Latest Vote

Result: Passed - September 23, 2008

Roll call number 623 in the House

Question: On Passage: H R 5244 Credit Cardholders’ Bill of Rights Act of 2008

 

OpenCongress Summary

Seeks to improve consumer protections against credit card industry abuses. Among its many proposed policies are better regulation of interest rate increases, increased protections for cardholders who pay on time, stricter guidelines against misleading terms in contracts and new congressional reporting requirements on industry profits, rates and fees.
OpenCongress bill summaries are written by OpenCongress editors and are entirely independent of Congress and the federal government. For the summary provided by Congress itself, via the Congressional Research Service, see the "Official Summary" below.

Official Summary

Credit Cardholders' Bill of Rights Act of 2008 - (Sec. 2) Amends the Truth in Lending Act to prohibit a creditor from increasing any annual percentage rate of interest (APR) applicable to the existing balance on an open end consumer credit card account unless specified conditions are m

Official Summary

Credit Cardholders' Bill of Rights Act of 2008 -

(Sec. 2)

Amends the Truth in Lending Act to prohibit a creditor from increasing any annual percentage rate of interest (APR) applicable to the existing balance on an open end consumer credit card account unless specified conditions are met. Prescribes the treatment of existing balances following a rate increase.Allows a creditor to increase an APR on the existing credit card balance only if the increase is due solely to:
(1) the operation of an index not under the creditor's control and available to the general public;
(2) expiration of a promotional rate, or loss of a promotional rate for a reason specified in the account agreement (e.g., late payment); or
(3) the consumer's minimum payment has not been received within 30 days after its due date.Requires a 45-day advance notice of credit card account rate increases.

(Sec. 3)

Prohibits imposition of a finance charge, with certain exceptions, upon a credit card account balance that is based on balances for days in billing cycles preceding the most recent billing cycle (double cycle billing).Prohibits the imposition of a fee on an outstanding credit card balance, at the end of a billing period, that is attributable only to interest accrued during the preceding billing period on an outstanding balance fully repaid during that preceding billing period. Declares that any failure to make timely repayments of such a balance shall not constitute a default on the account.Requires each periodic statement of account to provide the telephone number, Internet address, and website at which the payoff balance may be requested.Grants a consumer the right to reject a new credit card before the creditor notifies a consumer reporting agency of its corresponding account.Details mandatory pro rata payment allocations by a creditor where an outstanding balance accrues interest at two or more different APRs.Sets forth special rules for accounts with promotional rate balances or deferred interest balances. Prohibits a creditor from denying a cardholder a specified payment grace period if the cardholder takes advantage of a promotional rate balance or deferred interest rate balance.Requires creditors to send a periodic credit card statement of account to the consumer at least 25 calendar days before the due date for the next payment on the outstanding balance.

(Sec. 4)

Authorizes a consumer to opt-out of creditor authorization of over-the-limit transactions if fees are imposed.Limits any imposition of an over-the-limit fee to once per billing cycle.Prohibits imposition of any over-the-limit fee if the credit limit was exceeded due to a credit hold, unless the actual amount of the transaction for which the hold was placed would have resulted in the consumer's exceeding such credit limit.

(Sec. 5)

Prescribes the contents of credit card price and availability information which the Board of Governors of the Federal Reserve System (Board) must collect and make public semiannually.Requires the Board to report to Congress annually on estimates of the approximate, relative percentage of income derived by the credit card operations of depository institutions from designated sources, including interest rates and fees imposed upon cardholders.

(Sec. 6)

Prescribes a standard for the initial issuance of subprime or \"fee harvester\" cards (accounts requiring first-year fee payments in excess of 25% of the total amount of credit authorized).Prohibits payment of any such fees (other than late fees or over-the-limit fees) from the credit made available by the card.

(Sec. 7)

Prohibits extensions of credit to consumers under age 18, unless they are emancipated under state law.

(Sec. 8)

Requires the Board to prescribe regulations implementing this Act within six months after its enactment. Expresses the sense of Congress that no provision of this Act should impede the promulgation of final regulations under laws in effect on the day before the date of enactment. States that such regulations should:
(1) be prescribed in final form on or before December 31, 2008; and
(2) apply to credit card transactions after the 30-day period following issuance in final form.

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