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.
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 , 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 .
Considerations
Differentiation permitted
In issuing rules required by this subsection, the Bureau may establish different standards for different types of fees and charges, as appropriate.
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, § 149Pub. L. 111–24, title I, § 102(b)(1)123 Stat. 1740Pub. L. 111–203, title X, § 1100A(2)124 Stat. 2107(, as added , , ; amended , , .)
Editorial Notes
Amendments
Pub. L. 111–203, § 1100A(2)2010—Subsecs. (b) to (e). , which directed amendment of this section by substituting “Bureau” for “Board” wherever appearing, was executed by making the substitution for “Board” the first time appearing in subsecs. (b) and (e), and wherever appearing in subsecs. (c) and (d), to reflect the probable intent of Congress.
Statutory Notes and Related Subsidiaries
Effective Date of 2010 Amendment
Pub. L. 111–203section 1100H of Pub. L. 111–203section 552a of Title 5Amendment by effective on the designated transfer date, see , set out as a note under , Government Organization and Employees.
Effective Date
section 3 of Pub. L. 111–24section 1602 of this titleSection effective 9 months after , except as otherwise specifically provided, see , set out as an Effective Date of 2009 Amendment note under .