Federal Register / Vol. 75, No. 34 / Monday, February 22, 2010 / Rules and Regulations 7925 

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[FR Doc. 2010–624 Filed 2–19–10; 8:45 am] 

BILLING CODE 6210–01–P 

FEDERAL RESERVE SYSTEM 

12 CFR Part 226 

[Regulation Z; Docket No. R–1286] 

Truth in Lending 

AGENCY: Board of Governors of the 

Federal Reserve System. 

ACTION: Final rule; withdrawal. 

SUMMARY: The Board is withdrawing a 

final rule amending Regulation Z and 

the staff commentary to the regulation 

published on January 29, 2009 (January 

2009 Regulation Z Rule). See 72 FR 

5244. The Board is publishing a new 

final rule elsewhere in this Federal 

Register amending Regulation Z in 

order to implement the provisions of the 

Credit Card Accountability 

Responsibility and Disclosure Act of 

2009 that are effective on February 22, 

2010. The requirements of the January 

2009 Regulation Z Rule have been 

revised for consistency with the Credit 

Card Act and incorporated in the new 

final rule. Therefore, the Board is 

withdrawing the January 2009 

Regulation Z Rule as unnecessary. 

DATES: The final rule published on 

January 29, 2009, at 74 FR 5244, is 

withdrawn as of February 22, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Stephen Shin, Attorney, or Amy 

Henderson or Benjamin K. Olson, 

Senior Attorneys, Division of Consumer 

and Community Affairs, Board of 

Governors of the Federal Reserve 

System, at (202) 452–3667 or 452–2412; 

for users of Telecommunications Device 

for the Deaf (TDD) only, contact (202) 

263–4869. 

SUPPLEMENTARY INFORMATION: On 

December 18, 2008, the Board adopted 

a final rule amending Regulation Z, 

which implements the Truth in Lending 

Act (TILA), and the official staff 

commentary. The rule followed a 

comprehensive review of TILA’s 

provisions for open-end (not homesecured) credit, including credit cards. 

The rule made comprehensive changes 

to those provisions, including 

amendments that affect all of the five 

major types of required disclosures: 

Credit card applications and 

solicitations, account-opening 

disclosures, periodic statements, notices 

of changes in terms, and advertisements. 

The rule was published in the Federal 

Register on January 29, 2009, and the 

effective date for the amendments was 

July 1, 2010. See 74 FR 5244 (January 

2009 Regulation Z Rule). 

On May 22, 2009, the Credit Card 

Accountability Responsibility and 

Disclosure Act of 2009 (Credit Card Act) 

was signed into law. See Public Law 

111–24, 123 Stat. 1734 (2009). The 

Credit Card Act primarily amends TILA 

and establishes a number of new 

substantive and disclosure requirements 

to establish fair and transparent 

practices pertaining to open-end 

consumer credit plans, including credit 

card accounts. Elsewhere in today’s 

Federal Register, the Board has 

published a new final rule amending 

Regulation Z and the staff commentary 

in order to implement provisions of the 

Credit Card Act that are effective on 

February 22, 2010. The provisions of the 

Board’s January 2009 Regulation Z Rule 

have been revised for consistency with 

the Credit Card Act and incorporated 

into the new final rule. Accordingly, the 

Board is withdrawing the January 2009 

Regulation Z Rule. 

The new final rule is effective on 

February 22, 2010. However, to the 

extent consistent with the Credit Card 

Act, the Board has retained the July 1, 

2010 mandatory compliance date for 

many of the provisions incorporated 

from the January 2009 Regulation Z 

Rule. The Board has provided 

additional discussion of the withdrawal 

of the January 2009 Regulation Z Rule 

and the mandatory compliance dates in 

the Supplementary Information for the 

new final rule. 

The final rule published on January 

29, 2009, at 74 FR 5244, is withdrawn 

as of February 22, 2010. 

* * * * * 

By order of the Board of Governors of the 

Federal Reserve System, January 11, 2010. 

Jennifer J. Johnson, 

Secretary of the Board. 

[FR Doc. 2010–606 Filed 2–19–10; 8:45 am] 

BILLING CODE 6210–01–P 

FEDERAL RESERVE SYSTEM 

12 CFR Part 227 

[Regulation AA; Docket No. R–1383] 

Unfair or Deceptive Acts or Practices 

AGENCY: Board of Governors of the 

Federal Reserve System. 

ACTION: Final rule. 

SUMMARY: On January 29, 2009, the 

Board published a final rule amending 

Regulation AA and the staff 

commentary to the regulation. The 

substantive requirements in the January 

2009 Regulation AA Rule, which were 

scheduled to go into effect on July 1, 

2010, have been superseded by 

provisions of the Credit Card 

Accountability Responsibility and 

Disclosure Act of 2009 (Credit Card Act) 

that go into effect on February 22, 2010. 

Elsewhere in this issue of the Federal 

Register, the Board is implementing 

these Credit Card Act provisions in a 

new final rule amending Regulation Z. 

Accordingly, in order to avoid 

duplication and inconsistency, the 

Board is further amending Regulation 

AA to remove the substantive 

requirements in the January 2009 

Regulation AA Rule. For procedural 

reasons, these requirements will be 

removed effective July 1, 2010. 

However, it is the Board’s intent that the 

substantive requirements of the January 

2009 Regulation AA Rule will not take 

effect. 

The Board issued its January 2009 

Regulation AA Rule jointly with rules 

issued by the Office of Thrift 

Supervision (OTS) and the National 

Credit Union Administration (NCUA). 

This final rule applies only to the 

Board’s Regulation AA and does not 

affect the rules issued by the OTS and 

NCUA. 

DATES: This rule is effective July 1, 

2010. 

FOR FURTHER INFORMATION CONTACT: 

Stephen Shin, Attorney, or Amy 

Henderson or Benjamin K. Olson, 

Senior Attorneys, Division of Consumer 

and Community Affairs, Board of 

Governors of the Federal Reserve 

System, at (202) 452–3667 or 452–2412; 

for users of Telecommunications Device 

for the Deaf (TDD) only, contact (202) 

263–4869. 

SUPPLEMENTARY INFORMATION: On 

December 18, 2008, the Board used its 

authority under the Federal Trade 


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7926 Federal Register / Vol. 75, No. 34 / Monday, February 22, 2010 / Rules and Regulations 

Commission Act (FTC Act) to adopt a 

final rule amending Regulation AA (12 

CFR Part 227) and the staff commentary 

to the rule in order to protect consumers 

from unfair acts or practices with 

respect to consumer credit card 

accounts. In addition to imposing new 

substantive requirements, the rule also 

made several non-substantive 

amendments to Regulation AA. For 

example, the Board revised certain 

subpart headings and consolidated the 

consumer complaint provisions in 

§§ 227.1 and 227.2 into a new § 227.1 

and added an e-mail address and Web 

site where consumers can submit 

complaints. 

The rule was published in the Federal 

Register on January 29, 2009 (See 74 FR 

5498 (January 2009 Regulation AA 

Rule)), and the effective date for the 

amendments is July 1, 2010. The Board 

issued its January 2009 Regulation AA 

Rule jointly with a rule issued by the 

Office of Thrift Supervision (OTS) 

amending 12 CFR Part 535 and a rule 

issued by the National Credit Union 

Administration (NCUA) amending 12 

CFR Part 706. 

On May 22, 2009, the Credit Card 

Accountability Responsibility and 

Disclosure Act of 2009 (Credit Card Act) 

was signed into law. See Public Law 

111–24, 123 Stat. 1734 (2009). The 

Credit Card Act primarily amends the 

Truth in Lending Act (TILA) and 

establishes a number of new substantive 

and disclosure requirements to establish 

fair and transparent practices pertaining 

to open-end consumer credit plans, 

including credit card accounts. The 

majority of the Credit Card Act’s 

provisions go into effect on February 22, 

2010, including provisions that 

supersede the substantive requirements 

in the Board’s January 2009 Regulation 

AA Rule. Elsewhere in today’s Federal 

Register, the Board has published a new 

final rule amending Regulation Z and 

the staff commentary to the regulation 

in order to implement those provisions 

of the Credit Card Act. 

Accordingly, because the substantive 

requirements in the Board’s January 

2009 Regulation AA Rule are no longer 

necessary and—in some cases—are 

inconsistent with the provisions of the 

Credit Card Act, the Board is amending 

Regulation AA to remove those 

requirements. However, the Board is 

retaining the non-substantive 

amendments in the January 2009 

Regulation AA Rule, such as the 

revisions to the consumer complaint 

provisions. 

For procedural reasons, these 

requirements will be removed effective 

July 1, 2010. However, it is the Board’s 

intent that the substantive requirements 

in the January 2009 Regulation AA Rule 

will not take effect. In addition, the 

Board does not intend to finalize the 

proposed amendments to the January 

2009 Regulation AA Rule, which were 

published in the Federal Register on 

May 5, 2009. See 74 FR 20804. This 

final rule applies only to the Board’s 

Regulation AA and does not affect the 

rule issued by the OTS amending 12 

CFR Part 535 or the rule issued by the 

NCUA amending 12 CFR Part 706. 

List of Subjects in 12 CFR Part 227 

Banks, Banking, Credit, 

Intergovernmental relations, Trade 

practices. 

Board of Governors of the Federal 

Reserve System 

12 CFR Chapter II 

Authority and Issuance 

■ For the reasons discussed in the 

preamble, the Board amends 12 CFR 

part 227 as set forth below: 

PART 227—UNFAIR OR DECEPTIVE 

ACTS OR PRACTICES (REGULATION 

AA) 

■ 1. The authority citation for part 227 

continues to read as follows: 

Authority: 15 U.S.C. 57a(f). 

Subpart A—General Provisions 

■ 2. Section 227.1 is revised to read as 

follows: 

§ 227.1 Authority, purpose, and scope. 

(a) Authority. This part is issued by 

the Board under section 18(f) of the 

Federal Trade Commission Act, 15 

U.S.C. 57a(f) (section 202(a) of the 

Magnuson-Moss Warranty—Federal 

Trade Commission Improvement Act, 

Pub. L. 93–637). 

(b) Purpose. The purpose of this part 

is to prohibit unfair or deceptive acts or 

practices in violation of section 5(a)(1) 

of the Federal Trade Commission Act, 

15 U.S.C. 45(a)(1). This part defines and 

contains requirements prescribed for the 

purpose of preventing specific unfair or 

deceptive acts or practices of banks. The 

prohibitions in this part do not limit the 

Board’s or any other agency’s authority 

to enforce the FTC Act with respect to 

any other unfair or deceptive acts or 

practices. 

(c) Scope. This part applies to banks, 

including subsidiaries of banks and 

other entities listed in paragraph (c)(2) 

of this section. This part does not apply 

to savings associations as defined in 12 

U.S.C. 1813(b). Compliance is to be 

enforced by: 

(1) The Comptroller of the Currency, 

in the case of national banks and federal 

branches and federal agencies of foreign 

banks; 

(2) The Board of Governors of the 

Federal Reserve System, in the case of 

banks that are members of the Federal 

Reserve System (other than banks 

referred to in paragraph (c)(1) of this 

section), branches and agencies of 

foreign banks (other than federal 

branches, federal agencies, and insured 

state branches of foreign banks), 

commercial lending companies owned 

or controlled by foreign banks, and 

organizations operating under section 

25 or 25A of the Federal Reserve Act; 

and 

(3) The Federal Deposit Insurance 

Corporation, in the case of banks 

insured by the Federal Deposit 

Insurance Corporation (other than banks 

referred to in paragraphs (c)(1) and (c)(2) 

of this section), and insured state 

branches of foreign banks. 

(d) Definitions. Unless otherwise 

noted, the terms used in paragraph (c) 

of this section that are not defined in the 

Federal Trade Commission Act or in 

section 3(s) of the Federal Deposit 

Insurance Act (12 U.S.C. 1813(s)) shall 

have the meaning given to them in 

section 1(b) of the International Banking 

Act of 1978 (12 U.S.C. 3101). 

Subpart C—[Removed and Reserved] 

■ 3. Subpart C is removed and reserved. 

■ 4. Supplement I is revised to read as 

follows: 

Supplement I to Part 227—Official Staff 

Commentary 

Subpart A—General Provisions for 

Consumer Protection Rules 

§ 227.1 Authority, purpose, and scope. 

1(c) Scope 

1. Penalties for noncompliance. 

Administrative enforcement of the rule 

for banks may involve actions under 

section 8 of the Federal Deposit 

Insurance Act (12 U.S.C. 1818), 

including cease-and-desist orders 

requiring that actions be taken to 

remedy violations and civil money 

penalties. 

2. Industrial loan companies. 

Industrial loan companies that are 

insured by the Federal Deposit 

Insurance Corporation are covered by 

the Board’s rule. 

By order of the Board of Governors of the 

Federal Reserve System, February 3, 2010. 

Jennifer J. Johnson, 

Secretary of the Board. 

[FR Doc. 2010–2672 Filed 2–19–10; 8:45 am] 

BILLING CODE 6210–01–P 


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