§ 1665d. Reasonable penalty fees on open end consumer credit plans

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(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 Board of Directors of the Federal Deposit Insurance Corporation, the Director of the Office of Thrift Supervision, and the National Credit Union Administration Board, shall issue final rules not later than 9 months after May 22, 2009, 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 May 22, 2009.

(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 Board of Directors of the Federal Deposit Insurance Corporation, the Director of the Office of Thrift Supervision, and the National Credit Union Administration Board, 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.

(Pub. L. 90–321, title I, § 149, as added Pub. L. 111–24, title I, § 102(b)(1), May 22, 2009, 123 Stat. 1740; amended Pub. L. 111–203, title X, § 1100A(2), July 21, 2010, 124 Stat. 2107.)

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statute-compilations

Sec. 149
REASONABLE PENALTY FEES ON OPEN END CONSUMER CREDIT PLANS

statutes-at-large

Public Law 111–24
To amend the Truth in Lending Act to establish fair and transparent practices relating to the extension of credit under an open end consumer credit plan, and for other purposes

bill

Traces to 2 documents

U.S. Code

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Pub. L. 90–321, title I, § 149
Pub. L. 111–24, title I, § 102(b)(1)
123 Stat. 1740
Pub. L. 111–203, title X, § 1100A(2)
124 Stat. 2107
Pub. L. 111–203, § 1100A(2)
Pub. L. 111–203
section 1100H of Pub. L. 111–203
section 3 of Pub. L. 111–24

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cites case law

§ 1665d

Reasonable penalty fees on open end consumer credit plans

Fed. Reg.×44

Bills×8

Stat. Comp.×1

Stat.×1

U.S.C.§ 552a

U.S.C.§ 1602

Pub. L.Pub. L. 90–321, title I, § 149

Pub. L.Pub. L. 111–24, title I, § 102(b)(1)

Stat.123 Stat. 1740

Pub. L.Pub. L. 111–203, title X, § 1100A(2)

Stat.124 Stat. 2107

Cites 11 · showing 7Cited by 54 across 4 sources