H.R. 3959

Credit Card Rate Freeze Act of 2009

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I

111th CONGRESS

1st Session

H. R. 3959

IN THE HOUSE OF REPRESENTATIVES

October 28, 2009

Ms. Markey of Colorado introduced the following bill; which was referred to the Committee on Financial Services

A BILL

To establish a moratorium on credit card interest rate increases, and for other purposes.

1.

Short title

This Act may be cited as the Credit Card Rate Freeze Act of 2009.

2.

Moratorium on rate increases

During the period beginning on the date of enactment of this Act and ending 9 months after the date of the enactment of the Credit Card Accountability Responsibility and Disclosure Act of 2009, in the case of any credit card account under an open end consumer credit plan—

(1)

no creditor may increase any annual percentage rate, fee, or finance charge applicable to any outstanding balance, except as permitted under subsection 171(b) of the Truth in Lending Act (as added by Public Law 111–24); and

(2)

no creditor may change the terms governing the repayment of any outstanding balance, except as set forth in section 171(c) of the Truth in Lending Act (as added by Public Law 111–24).

3.

Defined terms

For purposes of this Act, the following definitions shall apply:

(1)

Annual percentage rate

The term annual percentage rate means an annual percentage rate, as determined under section 107 of the Truth in Lending Act (15 U.S.C. 1606).

(2)

Finance charge

The term finance charge means a finance charge, as determined under section 106 of the Truth in Lending Act (15 U.S.C. 1605).

(3)

Outstanding balance

The term outstanding balance has the same meaning as in section 171(d) of the Truth in Lending Act (as added by Public Law 111–24).

(4)

Other terms

Any term used in this Act that is defined in section 103 of the Truth in Lending Act (15 U.S.C. 1602) and is not otherwise defined in this Act shall have the same meaning in such section.

4.

Regulatory authority

(a)

In general

The Board of Governors of the Federal Reserve System may prescribe such regulations as may be necessary to carry out this Act.

(b)

Date of enactment

The provisions of this Act shall take effect upon the date of the enactment of this Act, regardless of whether rules are issued under subsection (a).