An amendment numbered 12 printed in House Report 111-92 to require credit card issuers to provide enhanced disclosure to consumers regarding minimum payments, including a written Minimum Payment Warning statement on all monthly statements as well as information regarding the monthly payment amount and total cost that would be required for the consumer to eliminate the outstanding balance in 12, 24 and 36. Would require credit card issuers to provide a toll-free telephone number at which the consumer may receive information about accessing credit counseling and debt management services.

1. Adds SEC. 9. ENHANCED MINIMUM PAYMENT DISCLOSURES after section 8

   Adds a section

   Inserted: SEC. 9. ENHANCED MINIMUM PAYMENT DISCLOSURES.

   Inserted: Paragraph (11) of section 127(b) of the Truth in Lending Act (15 U.S.C. 1637(b)(11)) is amended to read as follows:

   Inserted: "(11) Minimum payment disclosures.--

   Inserted: "(A) Minimum payment warning.--A written statement in the following form: 'Minimum Payment Warning: Making only the minimum payment will increase the interest you pay and the time it takes to repay your balance.'.

   Inserted: "(B) Information on outstanding balance.--Not less than once per calendar quarter, such billing statement shall also include repayment information that would apply to the outstanding balance of the consumer under the credit plan, including--

   Inserted: "(i) the number of months (rounded to the nearest month) that it would take to pay the entire amount of that balance, if the consumer pays only the required minimum monthly payments and if no further advances are made;

   Inserted: "(ii) the total cost to the consumer, including interest payments, of paying that balance in full, if the consumer pays only the required minimum monthly payments and if no further advances are made;

   Inserted: "(iii) the monthly payment amount that would be required for the consumer to eliminate the outstanding balance in 12 months, 24 months, and 36 months, if no further advances are made, and the total cost to the consumer, including interest and principal payments, of paying that balance in full if the consumer pays the balance over 12, 24, or 36 months, respectively; and

   Inserted: "(iv) a toll-free telephone number at which the consumer may receive information about accessing credit counseling and debt management services.

   Inserted: "(C) Exception to requirements of subsection (b).--The quarterly disclosure requirements in subsection (B) shall not apply with respect to--

   Inserted: "(i) a calendar quarter if, in the 2 consecutive billing cycles preceding the end of such quarter, a consumer has paid the entire balance of the bill in full;

   Inserted: "(ii) a calendar quarter if, at the end of the calendar quarter, a consumer has an outstanding credit balance of zero or has a positive credit; or

   Show 15 more inserted paragraphsShow less

   Inserted: "(iii) any class of consumers for which the Board has determined will not benefit substantially from additional disclosures.

   Inserted: "(D) Applicable rates to be used in disclosures.--

   Inserted: "(i) In general.--Subject to clause (ii), in making the disclosures under subparagraph (B), the creditor shall apply the interest rate or rates in effect on the date on which the disclosure is made until the date on which the balance would be paid in full.

   Inserted: "(ii) Special rule in case of temporary rate.--If the interest rate in effect on the date on which the disclosure is made is a temporary rate that will change under a contractual provision applying an index or formula for subsequent interest rate adjustment, the creditor shall apply the interest rate in effect on the date on which the disclosure is made for as long as that interest rate will apply under that contractual provision, and then apply an interest rate based on the index or formula in effect on the applicable billing date.

   Inserted: "(E) Form and prominence of disclosure.--All of the information described in subparagraph (B) shall--

   Inserted: "(i) be disclosed in the form and manner which the Board shall prescribe, by regulation, and in a manner that avoids duplication; and

   Inserted: "(ii) be placed in a conspicuous and prominent location on the billing statement in conspicuous typeface.

   Inserted: "(F) Tabular format.--In the regulations prescribed under subparagraph (D), the Board shall require that the disclosure of such information shall be in the form of a table that--

   Inserted: "(i) contains clear and concise headings for each item of such information; and

   Inserted: "(ii) provides a clear and concise form stating each item of information required to be disclosed under each such heading.

   Inserted: "(G) Location and order of table.--In prescribing the form of the table under subparagraph (E), the Board shall require that--

   Inserted: "(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

   Inserted: "(ii) the items required to be included in the table shall be listed in the order in which such items are described in subparagraph (B).

   Inserted: "(H) Substitution of terminology.--In prescribing the form of the table under subparagraph (D), the Board may employ terminology which is different than the terminology used in subparagraph (B), if such terminology is more easily understood and conveys substantially the same meaning.

   Inserted: "(I) 'Rounding' regulations.--For purposes of determining whether an error in the disclosures required by subparagraph (B) constitutes a legal cause of action against a creditor or any other party, the standard referred to under the heading 'Rounding assumed payments, current balance and interest charges to the nearest cent' in the publication by the Board in the Federal Register (74 F.R. 5385) on January 29, 2009, of the final regulation revising part 226 of title 12 of the Code of Federal Regulations (Regulation Z), or a standard that affords substantially similar protections as determined by the Board, shall apply for purposes of the determination with regard to such disclosures.".

   Original wording

   After section 8, insert the following new section (and redesignate subsequent sections accordingly):

Read automatically from the Congressional Record. Check the original before relying on it.

As printed