Source: http://stopforeclosurefraud.com/truth-in-lending-regulation-z/comment-page-1/
Timestamp: 2019-04-18 18:18:23
Document Index: 697516282

Matched Legal Cases: ['ART 226', '§226', '§226', '§226', '§226', '§226', '§226', '§226', '§226', '§ 226', '§ 226', '§ 226', '§ 226', '§ 226', '§ 226', '§ 226', '§ 226', '§ 226', '§ 226', '§ 226', '§ 226', '§ 226', '§ 226', '§ 226', '§ 226', 'art 226', '§ 226', '§ 226', '§ 167', '§ 226', '§ 226', '§ 226']

PART 226—TRUTH IN LENDING (REGULATION Z) 6500 – Consumer Protection
226.1 Authority, purpose, coverage, organization, enforcement and liability.
226.2 Definitions and rules of construction.
226.3 Exempt transactions.
226.4 Finance charge.
226.5 General disclosure requirements.
226.5a Credit and charge card applications and solicitations.
226.5b Requirements for home equity plans.
226.6 Initial disclosure statement.
226.7 Periodic statement.
226.8 Identification of transactions.
226.9 Subsequent disclosure requirements.
226.10 Prompt crediting of payments.
226.11 Treatment of credit balances.
226.12 Special credit card provisions.
226.13 Billing error resolution.
226.14 Determination of annual percentage rate.
226.15 Right of rescission.
226.16 Advertising.
226.17 General disclosure requirements.
226.18 Content of disclosures.
226.19 Certain residential mortgage and variable-rate transactions.
226.20 Subsequent disclosure requirements.
226.21 Treatment of credit balances.
226.22 Determination of annual percentage rate.
226.23 Right of rescission.
226.24 Advertising.
226.25 Record retention.
226.26 Use of annual percentage rate in oral disclosures.
226.27 Spanish language disclosures.
226.28 Effect on state laws.
226.29 State exemptions.
226.30 Limitation on rates.
226.31 General rules.
226.32 Requirements for certain closed-end home mortgages.
226.33 Requirements for reverse mortgages.
226.34 Prohibited acts or practices in connection with credit secured by a consumer’s dwelling.
226.35 Prohibited acts or practices in connection with higher-priced mortgage loans
226.36 Prohibited acts or practices in connection with credit secured by a consumer’s principal dwelling.
Subpart F—Subpart F—Special Rules for Private Education Loans
226.46 Special disclosure requirements for private education loans.
226.47 Content of disclosures.
226.48 Limitations on private education loans.
Subpart F—Subpart G—Special Rules Applicable to Credit Card Accounts and Open-End Credit Offered to College Students
§226.51 Ability to Pay.
§226.52 Limitations on fees.
§226.53 Allocation of payments.
§226.54 Limitations on the imposition of finance charges.
§226.55 Limitations on increasing annual percentage rates, fees, and charges.
§226.56 Requirements for over-the-limit transactions.
§226.57 Reporting and marketing rules for college student open-end credit.
§226.58 Internet posting of credit card agreements.
Appendix A—Effect on state laws.
Appendix B—State exemptions.
Appendix C—Issuance of staff interpretations.
Appendix D—Multiple advance construction loans.
Appendix E—Rules for card issuers that bill on a transaction-by-transaction basis.
Appendix F—Annual percentage rate computations for certain open-end credit plans.
Appendix G—Open-end model forms and clauses.
Appendix H—Closed-end model forms and clauses.
Appendix I—Federal enforcement agencies.
Appendix J—Annual percentage rate computations for closed-end credit transactions.
Appendix K—Total annual loan cost rate computations for reverse mortgage transactions.
Appendix L—Assumed loan periods for computations of total annual loan cost rates.
AUTHORITY: 12 U.S.C. 3806; 15 U.S.C. 1604 and 1637(c)(5) and 1639(1).
§ 226.1 Authority, purpose, coverage, organization, enforcement and liability.
(a) Authority. This regulation, known as Regulation Z, is issued by the Board of Governors of the Federal Reserve System to implement the federal Truth in Lending Act, which is contained in title I of the Consumer Credit Protection Act, as amended (15 U.S.C. 1601 et seq.). This regulation also implements title XII, section 1204 of the Competitive Equality Banking Act of 1987 (Pub. L. 100–86, 101 Stat. 552). Information-collection requirements contained in this regulation have been approved by the Office of Management and Budget under the provisions of 44 U.S.C. 3501 et seq. and have been assigned OMB No. 7100–0199.
(b) Purpose. The purpose of this regulation is to promote the informed use of consumer credit by requiring disclosures about its terms and cost. The regulation also gives consumers the right to cancel certain credit transactions that involve a lien on a consumer’s principal dwelling, regulates certain credit card practices, and provides a means for fair and timely resolution of credit billing disputes. The regulation does not govern charges for consumer credit. The regulation requires a maximum interest rate to be stated in variable-rate contracts secured by the consumer’s dwelling. It also imposes limitations on home-equity plans that are subject to the requirements of § 226.5b and mortgages that are subject to the requirements of § 226.32. The regulation prohibits certain acts or practices in connection with credit secured by a consumer’s principal dwelling. The regulation also regulates certain practices of creditors who extend private education loans as defined in § 226.46(b)(5).
(2) If a credit card is involved, however, certain provisions apply even if the credit is not subject to a finance charge, or is not payable by a written agreement in more than 4 installments, or if the credit card is to be used for business purposes.
(3) In addition, certain requirements of § 226.5b apply to persons who are not creditors but who provide applications for home equity plans to consumers.
(1) Subpart A contains general information. It sets forth: (i) the authority, purpose, coverage, and organization of the regulation; (ii) the definitions of basic terms; (iii) the transactions that are exempt from coverage; and (iv) the method of determining the finance charge.
(2) Subpart B contains the rules for open-end credit. It requires that initial disclosures and periodic statements be provided, as well as additional disclosures for credit and charge card applications and solicitations and for home equity plans subject to the requirements of §§ 226.5a and 226.5b, respectively. It also describes special rules that apply to credit card transactions, treatment of payments and credit balances, procedures for resolving credit billing errors, annual percentage rate calculations, rescission requirements, and advertising rules.
(4) Subpart D contains rules on oral disclosures, Spanish language disclosure in Puerto Rico, record retention, effect on state laws, state exemptions, and rate limitations.
(5) Subpart E contains special rules for mortgage transactions. Section 226.32 requires certain disclosures and provides limitations for loans that have rates and fees above specified amounts. Section 226.33 requires disclosures, including the total annual loan cost rate, for reverse mortgage transactions. Section 226.34 prohibits specific acts and practices in connection with mortgage transactions that are subject to § 226.32. Section 226.35 prohibits specific acts and practices in connection with higher-priced mortgage loans, as defined in § 226.35(a). Section 226.36 prohibits specific acts and practices in connection with credit secured by consumer’s principal dwelling.
(7) Several appendices contain information such as the procedures for determinations about state laws, state exemptions and issuance of staff interpretations, special rules for certain kinds of credit plans, a list of enforcement agencies, and the rules for computing annual percentage rates in closed-end credit transactions and total annual loan cost rates for reverse mortgage transactions.
(e) Enforcement and liability. Section 108 of the act contains the administrative enforcement provisions. Sections 112, 113, 130, 131, and 134 contain provisions relating to liability for failure to comply with the requirements of the act and the regulation. Section 1204(c) of Title XII of the Competitive Equality Banking Act of 1987, Pub. L. No. 100–86, 101 Stat. 552, incorporates by reference administrative enforcement and civil liability provisions of sections 108 and 130 of the act.
[Section 226.1 amended at 49 Fed. Reg. 46991, November 30, 1984, effective December 31, 1984; 52 Fed. Reg. 43181, November 9, 1987, effective December 9, 1987; 54 Fed. Reg. 13865, April 6, 1989, effective April 3, 1989, but compliance is optional until August 31, 1989; 54 Fed. Reg. 24686, June 9, 1989, effective June 7, 1989, but compliance is optional until November 7, 1989; 60 Fed. Reg. 15471, March 24, 1995, effective March 22, 1995, compliance is optional until October 1, 1995; 66 Fed. Reg. 65617, December 20, 2001, effective December 20, 2001, but compliance is mandatory as of October 1, 2002; 73 Fed. Reg 44599, July 30, 2008, effective October 1, 2009; 74 Fed. Reg. 41231 August 14, 2009, effective September 14, 2009, compliance date February 14, 2010]
(3) [Reserved]2
(6) “Business day” means a day on which the creditor’s offices are open to the public for carrying on substantially all of its business functions. However, for purposes of rescission under §§ 226.15 and 226.23, and for purposes of § 226.19(a)(1)(ii), § 226.19(a)(2), and § 226.31, and § 226.46(d)(4), the term means all calendar days except Sundays and the legal public holidays specified in 5 U.S.C. 6103(a), such as New Year’s Day, the birthday of Martin Luther King, Jr., Washington’s Birthday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day, and Christmas Day.
(7) Card issuer means a person that issues a credit card or that person’s agent with respect to the card.
(8) Cardholder means a natural person to whom a credit card is issued for consumer credit purposes, or a natural person who has agreed with the card issuer to pay consumer credit obligations arising from the issuance of a credit card to another natural person. For purposes of § 226.12(a) and (b), the term includes any person to whom a credit card is issued for any purpose, including business, commercial, or agricultural use, or a person who has agreed with the card issuer to pay obligations arising from the issuance of such a credit card to another person.
(9) Cash price means the price at which a creditor, in the ordinary course of business, offers to sell for cash the property or service that is the subject of the transaction. At the creditor’s option, the term may include the price of accessories, services related to the sale, service contracts and taxes and fees for license, title, and registration. The term does not include any finance charge.
(11) Consumer means a cardholder or a natural person to whom consumer credit is offered or extended. However, for purposes of rescission under §§ 226.15 and 226.23, the term also includes a natural person in whose principal dwelling a security interest is or will be retained or acquired, if that person’s ownership interest in the dwelling is or will be subject to the security interest.
(15) Credit card means any card, plate, coupon book, or other single credit device that may be used from time to time to obtain credit. “Charge card” means a credit card on an account for which no periodic rate is used to compute a finance charge.
(i) Agrees to pay as compensation for use a sum substantially equivalent to, or in excess of, the total value of the property and services involved; and
(i) A person (A) who regularly extends consumer credit3 that is subject to a finance charge or is payable by written agreement in more than four installments (not including a downpayment), and (B) to whom the obligation is initially payable, either on the face of the note or contract, or by agreement when there is no note or contract.
[Section 226.2 amended at 46 Fed. Reg. 29246, June 1, 1981; 47 Fed. Reg. 7392, February 19, 1982; 48 Fed. Reg. 14886, April 6, 1983, effective October 1, 1982; 54 Fed. Reg. 13865, April 6, 1989, effective April 3, 1989, but compliance is optional until August 31, 1989; 60 Fed. Reg. 15471, March 24, 1995, effective March 22, 1995, compliance is optional until October 1, 1995; 61 Fed. Reg. 49245, September 19, 1996, effective October 21, 1996; 69 Fed. Reg. 16773, March 31, 2004; 73 Fed Reg. 44599, July 30, 2008, effective October 1, 2009; 74 Fed. Reg. 23300, May 19, 2009, effective, July 30, 2009, the amendments to §§ 226.2(a)(6), 226.17(b) and (f), and 226.19(a)(1); and amendments 13, 14, 16, and 17 to Supplement I to part 226, published on July 30, 2008 (73 FR 44522), previously to become effective on October 1, 2009, are now effective July 30, 2009; 74 Fed. Reg. 41232, August 14, 2009, effective September 14, 2009, compliance date September 14, 2010]
(a) Business, commercial, agricultural, or organizational credit.4 (1) An extension of credit primarily for a business, commercial or agricultural purpose.
(b) Credit over $25,000. An extension of credit in which the amount financed exceeds $25,000 or in which there is an express written commitment to extend credit in excess of $25,000, unless the extension of credit is:
(1) Secured by real property, or by personal property used or expected to be used as the principal dwelling of the consumer; or
(2) A private education loan as defined in § 226.46(b)(5).
[Codified to 12 C.F.R. § 226.3]
[Section 226.3 amended at 48 Fed. Reg. 14886, April 6, 1983, effective October 1, 1982; 74 Fed. Reg. 41232, August 14, 2009, effective September 14, 2009, compliance date September 14, 2010]
(2) Charges for actual unanticipated late payment, for exceeding a credit limit or for delinquency, default, or a similar occurrence.
(iii) Notary, and credit report fees.
(iv) Property appraisal fees or fees for inspections to assess the value or condition of the property if the service is performed prior to closing, including fees related to pest infestation or flood hazard determinations.
(8) Discounts offered to induce payment for a purchase by cash, check, or other means, as provided in § 167(b) of the act.
(d) Insurance and debt cancellation coverage. (1) Voluntary credit. Premiums for credit life, accident, health, or loss-of-income insurance may be excluded from the finance charge if the following conditions are met:
(ii) The premium for the initial term of insurance coverage is disclosed. If the term of insurance is less than the term of the transaction, the term of insurance also shall be disclosed. The premium may be disclosed on a unit-cost basis only in open-end credit transactions, closed-end credit transactions by mail or telephone under § 226.17(g), and certain closed-end credit transactions involving an insurance plan that limits the total amount of indebtedness subject to coverage.
(2) Premiums for insurance against loss of or damage to property, or against liability arising out of the ownership or use of property,5 may be excluded from the finance charge if the following conditions are met:
(i) The insurance coverage may be obtained from a person of the consumer’s choice,6 and this fact is disclosed.
[Codified to 12 C.F.R. § 226.4]
[Section 226.4 amended at 61 Fed. Reg. 49245, September 19, 1996, effective October 21, 1996]
1 The meaning of “regularly” is explained in the definition of “creditor” in § 226.2(a). Go back to Text