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Full Text of this Amendment
On page 15, strike lines 5 through 12, and insert the following:
``(a) In General.--
``(1) 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.
``(2) An over-the-limit fee amount may be treated as reasonable and proportional under paragraph (1) only if the over-the-limit fee is imposed only once during a billing cycle when, on the last day of such billing cycle, the credit limit on the account is exceeded, and only if the over-the-limit fee, with respect to such excess credit, may be imposed only once in each of the 2 subsequent billing cycles unless the consumer has obtained an additional extension of credit in excess of such credit
limit during any such subsequent cycle or the consumer reduces the outstanding balance below the credit limit as of the end of such billing cycle.''.
(As printed in the Congressional Record for the Senate on May 14, 2009.)