Sec. 149. REASONABLE PENALTY FEES ON OPEN END CONSUMER CREDIT PLANS
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## SEC. 149 REASONABLE PENALTY FEES ON OPEN END CONSUMER CREDIT PLANS **[**[15 U.S.C. 1665d](/us/usc/t15/s1665d)**]** ###
(a)In General The amount of any penalty fee or charge that a card issuer may impose with respect to a credit card account under an open end consumer credit plan in connection with any omission with respect to, or violation of, the cardholder agreement, including any late payment fee, over-the-limit fee, or any other penalty fee or charge, shall be reasonable and proportional to such omission or violation. ###
(b)Rulemaking Required The Bureau, in consultation with the Comptroller of the Currency, the Bureau of Directors of the Federal Deposit Insurance Corporation64, the Director of the Office of Thrift Supervision, and the National Credit Union Administration Bureau65, shall issue final rules not later than 9 months after the date of enactment of this section, to establish standards for assessing whether the amount of any penalty fee or charge described under subsection
(a)is reasonable and proportional to the omission or violation to which the fee or charge relates. Subsection
(a)shall become effective 15 months after the date of enactment of this section. 64The reference to the “Bureau of Directors of the Federal Deposit Insurance Corporation” probably should be to the “Board of Directors of the Federal Deposit Insurance Corporation”. See amendment made by section 1100A(2) of Public Law 111–203. 65The reference to the “National Credit Union Administration Bureau” probably should be to the “National Credit Union Administration Board”. See amendment made by section 1100A(2) of Public Law 111–203. ###
(c)Considerations In issuing rules required by this section, the Bureau shall consider— ####
(1)the cost incurred by the creditor from such omission or violation; ####
(2)the deterrence of such omission or violation by the cardholder; ####
(3)the conduct of the cardholder; and ####
(4)such other factors as the Bureau may deem necessary or appropriate. ###
(d)Differentiation Permitted In issuing rules required by this subsection, the Bureau may establish different standards for different types of fees and charges, as appropriate. ###
(e)Safe Harbor Rule Authorized The Bureau, in consultation with the Comptroller of the Currency, the Bureau of Directors of the Federal Deposit Insurance Corporation64, the Director of the Office of Thrift Supervision, and the National Credit Union Administration Bureau65, may issue rules to provide an amount for any penalty fee or charge described under subsection
(a)that is presumed to be reasonable and proportional to the omission or violation to which the fee or charge relates.
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- Pub. L. 111-203
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Sec. 149
REASONABLE PENALTY FEES ON OPEN END CONSUMER CREDIT PLANS
Pub. L.Pub. L. 111-203
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