123STA T . 1 7 3 5PUBLIC LA W 111 – 2 4—M A Y 22 , 2 0 0 9Sec.503 . S tor e dvalu e. Sec. 50 4P rocedure f ort im el ys ettleme n t of estates of decedent o b li g ors. Sec. 505. R e p ort to C ongress on reductions of consumer credit card limits based on certain information as to e x perience or transactions of t h e consumer. Sec. 50 6 . B oard revie w of small business credit plans and recommendations. Sec. 50 7 . Small business information security tas k force. Sec. 50 8 . Study and report on emergency pin technology. Sec. 50 9 . Study and report on the marketing of products with credit offers. Sec. 5 1 0. F inancial and economic literacy. Sec. 511. Federal trade commission rulemaking on mortgage lending. Sec. 51 2 . Protecting A mericans from violent crime. Sec. 513. G A O study and report on fluency in the E nglish language and financial literacy. SEC.2 . R E GULATO R Y AUT H OR I TY. TheBoard o fG o v er n or s of t he F edera lR eserve Sy ste m(i n this Ac t referred to as the ‘ ‘Board ’ ’ ) may iss u e such rules and p u b lish such model forms as it considers necessary to carry out this Act and the amendments made by this Act . SEC. 3 .E F FECTI V E D ATE. This Act and the amendments made by this Act shall become effective 9 months after the date of enactment of this Act , e x cept as other w ise specifically provided in this Act. TI T LE I —CONSUM E RP ROTECTION SEC. 10 1. P ROTECTIO N OF CREDIT CARDHOLDERS. (a) A DVANCENOTI CEO F RATE I NC R EA S E AND O T H ER C HAN G ES RE QU IRED. — ( 1 )A M ENDMENT TO TI L A.—Section 1 27 of the Truth in L endin g Act (1 5U .S.C. 1 63 7) is amended by adding at the end the following
‘‘(i) ADVANCE NOTICE OF RATE INCREASE AND OTHER CHANGES REQUIRED.— ‘‘(1) ADVANCE NOTICE OF INCREASE IN INTEREST RATE REQUIRED.—In the case of any credit card account under an open end consumer credit plan, a creditor shall provide a writ - ten notice of an increase in an annual percentage rate (except in the case of an increase described in paragraph (1), (2), or (3) of section 171(b)) not later than 4 5 days prior to the effective date of the increase. ‘‘(2) ADVANCE NOTICE OF OTHER SIGNIFICANT CHANGES REQUIRED.—In the case of any credit card account under an open end consumer credit plan, a creditor shall provide a writ- ten notice of any significant change, as determined by rule of the Board, in the terms (including an increase in any fee or finance charge, other than as provided in paragraph (1)) of the cardholder agreement between the creditor and the obligor, not later than 45 days prior to the effective date of the change. ‘‘(3) NOTICE OF RIGHT TO CANCEL.— E ach notice re q uired by paragraph (1) or (2) shall be made in a clear and conspicuous manner, and shall contain a brief statement of the right of the obligor to cancel the account pursuant to rules established by the Board before the effective date of the sub j ect rate increase or other change. ‘‘(4) RULE OF CONSTRUCTION.—Closure or cancellation of an account by the obligor shall not constitute a default under Deadlin e . Deadline. 15USC 1 602 n ot e. 15 USC 1602 note.
