123STA T . 1 7 3 9PUBLIC LA W 111 – 2 4—M A Y 22 , 2 0 09 ‘ ‘ (B)any a djustme ntt o a fi nan c ec h a rg easaresu l t of the return of a p ayment for insufficient funds . ‘‘( k ) OPT-INREQU I R E DFO RO V ER-T H E- L I M IT T R A N S A C TIONS IF F EES A RE I MPOSED. — ‘‘( 1 )IN G ENERA L .—In the case of any credit card account under an open end consumer credit plan under w hich an o v er- the-limit fee may b e imposed by the creditor for any e x tension of credit in excess of the amount of credit authori z edtobe extended under such account , no such fee shall be charged, unless the consumer has expressly elected to permit the cred- itor, with respect to such account, to complete transactions involving the extension of credit under such account in excess of the amount of credit authorized. ‘‘( 2 ) D ISCLOSURE BY CREDITOR.— N o election by a consumer under paragraph (1) shall take effect unless the consumer, before making such election, received a notice from the creditor of any over-the-limit fee in the form and manner, and at the time, determined by the Board. If the consumer makes the election referred to in paragraph (1), the creditor shall provide notice to the consumer of the right to revoke the election, in the form prescribed by the Board, in any periodic statement that includes notice of the imposition of an over-the-limit fee during the period covered by the statement. ‘‘( 3 ) FORM OF ELECTION.—A consumer may make or revoke the election referred to in paragraph (1) orally, electronically, or in writing, pursuant to regulations prescribed by the Board. The Board shall prescribe regulations to ensure that the same options are available for both making and revoking such elec- tion. ‘‘( 4 ) TIME OF ELECTION.—A consumer may make the election referred to in paragraph (1) at any time, and such election shall be effective until the election is revoked in the manner prescribed under paragraph (3). ‘‘( 5 ) REGULATIONS.—The Board shall prescribe regula- tions— ‘‘(A) governing disclosures under this subsection
and ‘‘(B) that prevent unfair or deceptive acts or practices in connection with the manipulation of credit limits designed to increase over-the-limit fees or other penalty fees. ‘‘( 6 ) RULE OF CONSTRUCTION.—Nothing in this subsection shall be construed to prohibit a creditor from completing an over-the-limit transaction, provided that a consumer who has not made a valid election under paragraph (1) is not charged an over-the-limit fee for such transaction. ‘‘( 7 ) RESTRICTION ON FEES CHARGED FOR AN OVER-THE-LIMIT TRANSACTION.— W ith respect to a credit card account under an open end consumer credit plan, an over-the-limit fee may be imposed only once during a billing cycle if the credit limit on the account is exceeded, and an over-the-limit fee, with respect to such excess credit, may be imposed only once in each of the 2 subse q uent billing cycles, unless the consumer has obtained an additional extension of credit in excess of such credit limit during any such subsequent cycle or the consumer reduces the outstanding balance below the credit limit as of the end of such billing cycle. Regulations.N oti c e.
