§1616 — Title 15 Commerce and Trade | U.S. Code

Summary

The Board must review the consumer credit card market not later than 2 years after the law takes effect and every 2 years after that, using only its existing reporting resources. The review must look at four main things: credit card terms and issuer practices; how well fees and other costs are disclosed; protections against unfair or deceptive practices; and whether the law has changed cost and availability of credit (especially for non-prime borrowers), the financial safety of card issuers, the use of risk-based pricing, or product innovation. The Board must get comments from consumers, card issuers, and other interested parties, for example at hearings or in writing. After each review the Board must publish a notice in the Federal Register that summarizes the review, the public comments, and other evidence (such as consumer testing), and either proposes new or revised rules or explains why no changes are needed. If the Board makes major rule changes, the next review can wait until 2 years after those new rules take effect. The Board must report to Congress at least every 2 years on the review, actions taken, and any legislative recommendations. Federal banking agencies and the Federal Trade Commission must give the Board yearly information about their supervision and enforcement of credit-card consumer protection laws, including this Act and its regulations and section 5 of the Federal Trade Commission Act and related rules such as part 227 of title 12 (Regulation AA). The Board must include that information in its annual report to Congress under section 247 of title 12.

Title 15, §1616

Commerce and Trade — Source: USLM XML via OLRC

(a)Not later than 2 years after the effective date of this Act and every 2 years thereafter, except as provided in subsection (c)(2), the Board shall conduct a review, within the limits of its existing resources available for reporting purposes, of the consumer credit card market, including—

(1)the terms of credit card agreements and the practices of credit card issuers;

(2)the effectiveness of disclosure of terms, fees, and other expenses of credit card plans;

(3)the adequacy of protections against unfair or deceptive acts or practices relating to credit card plans; and

(4)whether or not, and to what extent, the implementation of this Act and the amendments made by this Act has affected—

(A)cost and availability of credit, particularly with respect to non-prime borrowers;

(B)the safety and soundness of credit card issuers;

(C)the use of risk-based pricing; or

(D)credit card product innovation.

(b)In connection with conducting the review required by subsection (a), the Board shall solicit comment from consumers, credit card issuers, and other interested parties, such as through hearings or written comments.

(c)(1)Following the review required by subsection (a), the Board shall publish a notice in the Federal Register that—

(A)summarizes the review, the comments received from the public solicitation, and other evidence gathered by the Board, such as through consumer testing or other research; and

(B)either—

(i)proposes new or revised regulations or interpretations to update or revise disclosures and protections for consumer credit cards, as appropriate; or

(ii)states the reason for the determination of the Board that new or revised regulations are not necessary.

(2)In the event that the Board materially revises regulations on consumer credit card plans, a review need not be conducted until 2 years after the effective date of the revised regulations, which thereafter shall be treated as the new date for the biennial review required by subsection (a).

(d)The Board shall report to Congress not less frequently than every 2 years, except as provided in subsection (c)(2), on the status of its most recent review, its efforts to address any issues identified from the review, and any recommendations for legislation.

(e)The Federal banking agencies (as that term is defined in section 1813 of title 12) and the Federal Trade Commission shall provide annually to the Board, and the Board shall include in its annual report to Congress under section 247 of title 12, information about the supervisory and enforcement activities of the agencies with respect to compliance by credit card issuers with applicable Federal consumer protection statutes and regulations, including—

(1)this Act, the amendments made by this Act, and regulations prescribed under this Act and such amendments; and

(2)section 5 of the Federal Trade Commission Act [15 U.S.C. 45], and regulations prescribed under the Federal Trade Commission Act [15 U.S.C. 41 et seq.], including part 227 of title 12 of the Code of Federal Regulations, as prescribed by the Board (referred to as “Regulation AA”).

Notes & Related Subsidiaries

Editorial Notes

References in Text

The

Effective Date

of this Act, referred to in subsec. (a), is 9 months after May 22, 2009, except as otherwise specifically provided in Pub. L. 111–24, see section 3 of Pub. L. 111–24, set out as an

Effective Date

of 2009 Amendment note under section 1602 of this title. This Act, referred to in subsecs. (a)(4) and (e)(1), is Pub. L. 111–24, May 22, 2009, 123 Stat. 1734, known as the Credit Card Accountability Responsibility and Disclosure Act of 2009, and also as the Credit CARD Act of 2009, which enacted this section and section 1651, 1665c to 1665e, 1666i–1, 1666i–2, and 1693l–1 of this title and section 1a–7b of Title 16, Conservation, amended section 1602, 1632, 1637, 1640, 1650, 1666b, 1666c, 1666j, 1681b, 1681j, and 1693m to 1693r of this title, enacted provisions set out as notes under section 1602, 1637, 1638, 1666b, 1681j, and 1693l–1 of this title and section 5311 of Title 31, Money and Finance, and amended provisions set out as notes under section 1638 and 1693 of this title. For complete classification of this Act to the Code, see

Short Title

of 2009 Amendment note set out under section 1601 of this title and Tables. The Federal Trade Commission Act, referred to in subsec. (e)(2), is act Sept. 26, 1914, ch. 311, 38 Stat. 717, which is classified generally to subchapter I (§ 41 et seq.) of chapter 2 of this title. For complete classification of this Act to the Code, see section 58 of this title and Tables. Codification Section was enacted as part of the Credit Card Accountability Responsibility and Disclosure Act of 2009, also known as the Credit CARD Act of 2009, and not as part of the Consumer Credit Protection Act which comprises this chapter.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective 9 months after May 22, 2009, except as otherwise specifically provided, see section 3 of Pub. L. 111–24, set out as an

Effective Date

of 2009 Amendment note under section 1602 of this title. Definition For definition of “Board”, see section 2 of Pub. L. 111–24, set out as a

Regulations

note under section 1602 of this title.

§1616 Board Review of Consumer Credit Plans and Regulations

Summary

Title 15, §1616

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Editorial Notes

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Effective Date

Effective Date

Short Title

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Regulations

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