Page:United States Statutes at Large Volume 123.djvu/1757

 123STA T . 1 7 37 PUBLIC LA W 111 – 2 4—M A Y 22, 2 0 0 9with i n60days a f t er the d u edatef o rsu c h p ay m ent , pro v ided that the creditor sha l l —‘ ‘ (A) include, to g ether with the notice of such increase re q uired under section 127 (i), a clear and conspicuous writ - ten statement of the reason for the increase and that the increase will terminate not later than 6 months after the date on which it is imposed, if the creditor receives the required minimum payments on time from the o b ligor during that period and ‘‘( B ) terminate such increase not later than 6 months after the date on which it is imposed, if the creditor receives the required minimum payments on time during that period . ‘‘(c) REPAYM E NTOFOU T S TAN DI N G BA L AN C E.— ‘‘(1) I N GENE R AL.— T he creditor shall not change the terms governing the repayment of any outstanding balance, e x cept that the creditor may provide the obligor with one of the methods described in paragraph (2) of repaying any outstanding balance, or a method that is no less beneficial to the obligor than one of those methods. ‘‘(2) M ET H ODS.—The methods described in this paragraph are— ‘‘(A) an amorti z ation period of not less than 5 years, beginning on the effective date of the increase set forth in the notice required under section 127(i); or ‘‘(B) a required minimum periodic payment that includes a percentage of the outstanding balance that is equal to not more than twice the percentage required before the effective date of the increase set forth in the notice required under section 127(i). ‘‘(d) OUTSTANDING BALANCE D EFINED.— F or purposes of this section, the term ‘outstanding balance ’ means the amount owed on a credit card account under an open end consumer credit plan asoftheendofthe1 4 th day after the date on which the creditor provides notice of an increase in the annual percentage rate, fee, or finance charge in accordance with section 127(i).’’. (c) INTEREST RATE REDUCTION ON OPEN E ND C ONSUMER CREDIT P LANS.—Chapter 3 of the Truth in L ending Act (15 U . S .C. 1661 et seq.) is amended by adding at the end the following

‘ SEC.148 . INT E R EST R A TE RE DU CTI O NONO P EN END CONSU M ER CREDIT P L ANS. ‘‘(a) IN G ENERAL.—If a creditor increases the annual percentage rate applicable to a credit card account under an open end consumer credit plan, based on factors including the credit ris k of the obligor, market conditions, or other factors, the creditor shall consider changes in such factors in subsequently determining whether to reduce the annual percentage rate for such obligor. ‘‘(b) RE Q UIREMENTS.— W ith respect to any credit card account under an open end consumer credit plan, the creditor shall— ‘‘(1) maintain reasonable methodologies for assessing the factors described in subsection (a); ‘‘(2) not less frequently than once every 6 months, review accounts as to which the annual percentage rate has been increased since J anuary 1, 200 9, to assess whether such factors have changed (including whether any risk has declined); Deadlin e s.R e v ie w. 15USC 1 6 65 c.