123STA T . 1 7 3 6PUBLIC LA W 111 – 2 4—M A Y 22 , 2 0 0 9anexist in gc a rdhol der agree m ent , and shall not trigger an o b ligation to immediatel y re p ay the obligation in fu ll or through a method that is less beneficial to the obligor than one of the methods described in section 17 1 ( c ) ( 2 ), or the imposition of any other penalty or fee .’ ’. (2) EF F ECTIV E DA TE. —N ot w ithstanding section 3 , section 127(i) of the T ruth in L ending A ct, as added by this subsection, shall become effecti v e 90 days after the date of enactment of this Act. (b) R ET RO ACTIVE IN CREA S E AND U NIVERSA LD EFA U LT P RO H I B- ITED.— C hapter 4 of the Truth in Lending Act (1 5 U. S .C. 1 6 66 et se q .) is amended— (1) by redesignating section 171 as section 173
and (2) by inserting after section 170 the following
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‘ SEC.17 1. LIM I T S ON INTE R EST R A TE ,F EE, AN D FINANCE C H AR G E INCREASES A P PLICA B LETOO U TSTANDING BALANCES. ‘ ‘(a) IN G ENERAL.—In the case of any credit card account under an open end consumer credit plan, no creditor may increase any annual percentage rate, fee, or finance charge applicable to any outstanding balance, except as permitted under subsection (b). ‘‘(b) E X CE P TIONS.—The prohibition under subsection (a) shall not apply to— ‘‘(1) an increase in an annual percentage rate upon the expiration of a specified period of time, provided that— ‘‘(A) prior to commencement of that period, the creditor disclosed to the consumer, in a clear and conspicuous manner, the length of the period and the annual percentage rate that would apply after expiration of the period; ‘‘( B ) the increased annual percentage rate does not exceed the rate disclosed pursuant to subparagraph (A); and ‘‘(C) the increased annual percentage rate is not applied to transactions that occurred prior to commencement of the period; ‘‘(2) an increase in a variable annual percentage rate in accordance with a credit card agreement that provides for changes in the rate according to operation of an index that is not under the control of the creditor and is available to the general public; ‘‘(3) an increase due to the completion of a wor k out or temporary hardship arrangement by the obligor or the failure of the obligor to comply with the terms of a workout or tem- porary hardship arrangement, provided that— ‘‘(A) the annual percentage rate, fee, or finance charge applicable to a category of transactions following any such increase does not exceed the rate, fee, or finance charge that applied to that category of transactions prior to commencement of the arrangement; and ‘‘(B) the creditor has provided the obligor, prior to the commencement of such arrangement, with clear and conspicuous disclosure of the terms of the arrangement (including any increases due to such completion or failure); or ‘‘(4) an increase due solely to the fact that a minimum payment by the obligor has not been received by the creditor Deadlin e s.15USC 1 6 66i – 1. 15 USC 1666 j . 15 USC 16 37 n ot e.
