15 U.S.C. § 1616 — Board review of consumer credit plans and regulations
submitted 17 years ago by Pub. L. 111-24 to r/title-15-COMMERCE-AND-TRADE · 530 words · no verdicts yet
The Board must review the consumer credit-card market every two years and seek public comments. After each review it must report to Congress and decide whether new or revised rules are needed.
(a) Required review. No later than two years after this Act takes effect, and every two years after that (unless subsection (c)(2) changes the date), the Board must review the consumer credit*-card market, using its existing resources available for reporting. The review must cover (1) credit-card agreement terms and issuer practices; (2) how well disclosures explain terms, fees, and other plan costs; (3) whether protections against unfair or deceptive credit-card practices are adequate; and (4) whether, and how much, this Act and its amendments have affected (A) the cost and availability of credit, especially for non-prime borrowers; (B) issuer safety and soundness; (C) risk-based pricing; and (D) innovation in credit-card products.
(b) Public comments. As part of the review, the Board must ask consumers, credit-card issuers, and other interested people or groups for comments, including through hearings or written comments.
(c) Rules. (1) After the review, the Board must publish a Federal Register notice that (A) summarizes the review, public comments, and other evidence it gathered, such as consumer testing or other research; and (B) either (i) proposes appropriate new or revised rules or interpretations updating or revising credit-card disclosures and protections, or (ii) explains why the Board decided new or revised rules are unnecessary. (2) If the Board materially revises rules on consumer credit-card plans, it need not conduct another review until two years after the revised rules take effect. That date becomes the new date for the two-year reviews.
(d) Report to Congress. At least every two years, subject to subsection (c)(2), the Board must report to Congress on the latest review’s status, its efforts to address issues found, and any legislative recommendations.
(e) Additional reporting. Each year, the Federal banking agencies (as “Federal banking agencies” is defined in 12 U.S.C. § 1813) and the Federal Trade Commission must give the Board information about their supervision and enforcement of credit-card issuers’ compliance with applicable Federal consumer-protection laws and rules. The Board must include that information in its annual report to Congress under 12 U.S.C. § 247. The information must cover (1) this Act, its amendments, and rules issued under them; and (2) section 5 of the Federal Trade Commission Act (15 U.S.C. § 45) and rules issued under that Act, including 12 C.F.R. part 227, called “Regulation AA.”
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—
the terms of credit* card agreements and the practices of credit card issuers;
the effectiveness of disclosure of terms, fees, and other expenses of credit card plans;
the adequacy of protections against unfair or deceptive acts or practices relating to credit card plans; and
whether or not, and to what extent, the implementation of this Act and the amendments made by this Act has affected—
cost and availability of credit, particularly with respect to non-prime borrowers;
the safety and soundness of credit card issuers;
the use of risk-based pricing; or
credit card product innovation.
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.
Following the review required by subsection (a), the Board shall publish a notice in the Federal Register that—
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
either—
proposes new or revised regulations or interpretations to update or revise disclosures and protections for consumer credit cards, as appropriate; or
states the reason for the determination of the Board that new or revised regulations are not necessary.
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).
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.
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—
this Act, the amendments made by this Act, and regulations prescribed under this Act and such amendments; and
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”).
Source credit: (Pub. L. 111–24, title V, § 502, May 22, 2009, 123 Stat. 1755.)
- 2009Enacted · Pub. L. 111-24 · 123 Stat. 1755
A history note hasn’t been published yet. The record shows enactment by Pub. L. 111-24 on 2009-05-22.
all 0 arguments · sorted by: best
no arguments yet — make the first case