Luke H. Brown Associate Director, Compliance Policy, FDIC

1. Addressing the Credit Card Crisis Wednesday, May 20, 2009 Luke H. BrownAssociate Director, Compliance Policy, FDIC

2. Influential Credit Card Bills from the 111th Congress in 2009 • Credit Cardholders’ Bill of Rights, H.R. 627 (Representative Carolyn Maloney) • Credit Cardholders’ Bill of Rights, S. 235 (Senator Charles Schumer) • Credit Card Accountability Responsibility and Disclosure Act [Credit CARD Act], S. 414 (Senator Christopher Dodd) • Senate Substitute of H.R. 627 (Senators Dodd and Richard Shelby)

3. Credit Card Practices • Advance notice of rate increases and other changes • Restrictions on: • Double-cycle billing • Retroactive interest rate or fee increases • Universal default restricted • Punitive payment allocation • High fee/subprime credit cards • Solicitations to underage consumers

4. Credit Card Practices (continued) • Prompt crediting of payments • No late fees following creditor changes that delay crediting payment • Full disclosure in billing statements of payment due dates and applicable late payment penalties • Disclosures and opt-in notice required to impose over-the-limit transaction fees • Disclosures upon renewal if card terms change • Forty-five day notice for interest rate increases

5. Credit Card Practices (continued) • No interest rate changes in first year • FRB UDAP regulations combating credit manipulation to increase fees • Statements mailed 21 days before due • Consistent due date • Enhanced minimum payment warning • Periodically assess lower rates • Restrictions on gift cards • Free credit reports in other languages