123STA T . 1 7 3 8PUBLIC LA W 111 – 2 4—M A Y 22 , 2 0 0 9‘ ‘ (3)reduc e th e an nua lp ercenta g e rate pre vio u s l y increased w hen a reduction is indicated b y the review
and ‘‘( 4 )intheevento f an increase in the annual percentage rate , provide in the written notice re q uired under section 127 (i) a state m ent of the reasons for the increase . ‘‘(c) RULEOFC O NSTR U C T I ON. —T his section shall not be con - strued to require a reduction in any specific amount. ‘‘(d) RULE MAK IN G .—The B oard shall issue final rules not later than 9 months after the date of enactment of this section to imple- ment the requirements of and evaluate compliance with this section, and subsections (a), (b), and (c) shall become effective 1 5 months after that date of enactment. ’ ’. (d) I NTRO D UCTOR Y AND P ROMOTIONAL RATES.—Chapter 4 of the Truth in L ending A ct (15 U . S .C. 1 6 66 et seq.) is amended by inserting after section 171, as amended by this Act, the following
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‘ SEC.172 . AD D IT I ON A L LI M ITS ON INTE R EST RATE INCREASES. ‘‘(a) LIMITATION ON INCREASES W IT H IN F IRST Y EAR.— Ex cept in the case of an increase described in paragraph (1), (2), (3), or (4) of section 171(b), no increase in any annual percentage rate, fee, or finance charge on any credit card account under an open end consumer credit plan shall be effective before the end of the 1-year period beginning on the date on which the account is opened. ‘‘(b) PROMOTIONAL RATE M INIMUM TERM.— N o increase in any annual percentage rate applicable to a credit card account under an open end consumer credit plan that is a promotional rate (as that term is defined by the Board) shall be effective before the end of the 6-month period beginning on the date on which the promotional rate ta k es effect, sub j ect to such reasonable exceptions as the Board may establish, by rule.’’. (e) CLERICAL AMENDMENT.—The table of sections for chapter 4 of the Truth in Lending Act is amended by striking the item relating to section 171 and inserting the following: ‘ ‘ 17 1 .Lim i tson int er est r a te ,f ee, an d finan c ec h ar g e increases a p p l ica b letoo u t - standing balances. ‘‘17 2 . A dditional limits on interest rate increases. ‘‘17 3 . Applicabilit y of S tate la w s. ’ ’. SEC. 1 0 2. LIMITS ON F EES AND INTEREST C H AR G ES. (a) IN G ENERAL.—Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is amended by adding at the end the following: ‘‘(j) PROHI B ITION ON PENALTIES FOR O N-TIME PAYMENTS.— ‘‘(1) PROHIBITION ON DOUBLE-CYCLE BILLING AND P ENALTIES FOR ON-TIME PAYMENTS.—Except as provided in paragraph (2), a creditor may not impose any finance charge on a credit card account under an open end consumer credit plan as a result of the loss of any time period provided by the creditor within which the obligor may repay any portion of the credit extended without incurring a finance charge, with respect to— ‘‘(A) any balances for days in billing cycles that precede the most recent billing cycle; or ‘‘(B) any balances or portions thereof in the current billing cycle that were repaid within such time period. ‘‘(2) E X CEPTIONS.—Paragraph (1) does not apply to— ‘‘(A) any adjustment to a finance charge as a result of the resolution of a dispute; or Timep e r i ods.15USC 1 6 66i –2 . D e a d l i n e. Ef fe ct i v e date.
