S.Amdt. 3849

SA 3849. Mr. WYDEN submitted an amendment intended to be proposed by him to the bill S. 3217, to promote the financial stability of the United States by improving accountability and transparency in the financial system, to end “too big to fail”, to protect the American taxpayer by ending bailouts, to protect consumers from abusive financial services practices, and for other purposes; which was ordered to lie on the table; as follows:

At the end of subtitle G of title X, add the following:

SEC. 1077. CREDIT CARD RATINGS.

(a) Research and Analysis.--Not later than 60 days after the date of enactment of this Act, the research unit established by the Director under section 1013(b) shall conduct a study of the credit card industry and the efficacy of establishing a rating system for credit cards, so that consumers are able to compare the terms of credit card accounts for purposes of comparing the level of safety and financial risk with respect to such accounts.

(b) Report.--Not later than 180 days after the date of enactment of this Act, the Director shall issue a report based on the study required in subsection (a), and shall determine, based on the report, whether establishing a ratings system for credit cards would meaningfully improve the ability of consumers to compare the terms of credit card accounts.

(c) Rulemaking.--If the Director determines, pursuant to subsection (b), that establishing a ratings system for credit cards would meaningfully improve the ability of consumers to compare the terms of credit card accounts, then not later than 12 months after the date of enactment of this Act, the Director shall issue final rules to establish and disclose to the public the ratings for credit card accounts. Such rules shall include consideration in such ratings of credit practices, including--

(1) terms of arbitration between the consumer and the credit card account holder;

(2) the imposition and amounts of fees;

(3) the ability of the consumer to opt out of a proposed change in the terms of the credit card agreement;

(4) the manner and methods in which materials and information are presented to consumers, and the degree of conspicuousness with which key terms of the agreement are presented;

(5) methods for the accrual of interest;

(6) reading level required to understand the terms of the agreement; and

(7) such other factors as the Director determines are appropriate with respect to such ratings.

(d) Consideration of NHTSA Program.--In carrying out subsection (c), the Director shall consider establishing a 5-star ratings system similar to the New Car Assessment Program administered by the National Highway Traffic Safety Administration of the Department of Transportation.