Source: https://www.fdic.gov/regulations/laws/rules/6000-200.html
Timestamp: 2014-04-16 22:12:54
Document Index: 193086763

Matched Legal Cases: ['§ 1', '§ 101', '§ 102', '§ 103', '§ 104', '§ 105', '§ 106', '§ 107', '§ 108', '§ 109', '§ 110', '§ 111', '§ 112', '§ 113', '§ 114', '§ 115', 'art 227']

CONSUMER PROTECTION CONSUMER CREDIT PROTECTION
§ 1. Short title of entire Act This Act may be cited as the Consumer Credit Protection Act. [Codified to 15 U.S.C. 1601 note] [Source: Section 1 of title I of the Act of May 29, 1968 (Pub. L.
No. 90--321; 82 Stat. 146), effective May 29, 1968] TITLE ICONSUMER CREDIT COST DISCLOSURE Chapter Section 1. GENERAL PROVISIONS 101 2. CREDIT TRANSACTIONS 121 3. CREDIT ADVERTISING 141 4. CREDIT BILLING 161 5. CONSUMER LEASES 181 CHAPTER 1GENERAL PROVISIONS Sec.
Short title. 102.
Congressional findings and declaration of purpose. 103.
Definitions and rules of construction. 104.
Exempted transactions. 105.
Regulations. 106.
Determination of finance charge. 107.
Determination of annual percentage rate. 108.
Administrative enforcement. 109.
Views of other agencies. 110.
[Repealed.] 111.
Effect on other laws. 112.
Criminal liability for willful and knowing violation. 113.
Effect on governmental agencies. 114.
Reports by Board and Attorney General.
Board review of consumer credit plans and
§ 101. Short title This title may be cited as the Truth in Lending Act. [Codified to 15 U.S.C. 1601 note] [Source: Section 101 of title I of the Act of May 29,
1968 (Pub. L. No. 90--321; 82 Stat. 146), effective May 29,
§ 102. Congressional findings and declaration of purpose (a) INFORMED USE OF CREDIT.--The Congress finds that
economic stabilization would be enhanced and the competition among the
various financial institutions and other firms engaged in the extension
of consumer credit would be strengthened by the informed use of credit.
The informed use of credit results from an awareness of the cost
thereof by consumers. It is the purpose of this title to assure a
meaningful disclosure of credit terms so that the consumer will be able
to compare more readily the various credit terms available to him and
avoid the uninformed use of credit, and to protect the consumer against
inaccurate and unfair credit billing and credit card practices. (b) TERMS OF PERSONAL PROPERTY LEASES.--The Congress also
finds that there has been a recent trend toward leasing automobiles and
other durable goods for consumer use as an alternative to installment
credit sales and that these leases have been offered
adequate cost disclosures.
It is the purpose of this title to assure a meaningful disclosure of
the terms of leases of personal property for personal, family, or
household purposes so as to enable the lessee to compare more readily
the various lease terms available to him, limit balloon payments in
consumer leasing, enable comparison of lease terms with credit terms
where appropriate, and to assure meaningful and accurate disclosures of
lease terms in advertisements. [Codified to 15 U.S.C. 1601] [Source: Section 102 of title I of the Act of May 29, 1968 (Pub.
L. No. 90--321; 82 Stat. 146), effective May 29, 1968, as amended by
section 302 of title III of the Act of October 28, 1974 (Pub. L. No.
93--495; 88 Stat. 1511), effective October 28, 1975; section 2 of the
Act of March 23, 1976 (Pub. L. No. 94--240; 90 Stat. 257), effective
March 23, 1977]
§ 103. Definitions and rules of construction (a) The definitions and rules of construction set forth in this
(b) BUREAU.--The term "Bureau" means the Bureau of
Consumer Financial Protection. (c) The term "Board" refers to the Board of Governors of the
Federal Reserve System. (d) The term "organization" means a corporation, government
or governmental subdivision or agency, trust, estate, partnership,
cooperative, or association. (e) The term "person" means a natural person or an
organization. (f) The term "credit" means the right granted by a creditor
to a debtor to defer payment of debt or to incur debt and defer its
payment. (g) The term "creditor" refers only to a person who both (1)
regularly extends, whether in connection with loans, sales of property
or services, or otherwise, consumer credit which is payable by
agreement in more than four installments or for which the payment of a
finance charge is or may be required, and (2) is the person to whom the
debt arising from the consumer credit transaction is initially payable
on the face of the evidence of indebtedness or, if there is no such
evidence of indebtedness, by agreement. Notwithstanding the preceding
sentence, in the case of an open-end credit plan involving a credit
card, the card issuer and any person who honors the credit card and
offers a discount which is a finance charge are creditors. For the
purpose of the requirements imposed under chapter 4 and sections
127(a)(5), 127(a)(6), 127(a)(7), 127(b)(1), 127(b)(2), 127(b)(3),
127(b)(8), and 127(b)(10) of chapter 2 of this title, the term
"creditor" shall also include card issuers whether or not the
amount due is payable by agreement in more than four installments or
the payment of a finance charge is or may be required, and the Bureau
shall, by regulation, apply these requirements to such card issuers, to
the extent appropriate, even though the requirements are by their terms
applicable only to creditors offering open-end credit plans. Any person
who originates 2 or more mortgages referred to in subsection (aa) in
any 12-month period or any person who originates 1 or more such
mortgages through a mortgage broker shall be considered to be a
creditor for purposes of this title. The term "creditor" includes
a private educational lender (as that term is defined in section 140)
for purposes of this title. (h) The term "credit sale" refers to any sale in which the
seller is a creditor. The term includes any contract in the form of a
bailment or lease if the bailee or lessee contracts to pay as
compensation for use a sum substantially equivalent to or in excess of
the aggregate value of the property and services involved and it is
agreed that the bailee or lessee will become, or for no other or a
nominal consideration has the option to become, the owner of the
property upon full compliance with his obligations under the contract. (i) The adjective "consumer", used with reference to a credit
transaction, characterizes the transaction as one in which the party to
whom credit is offered or extended is a natural person, and the money,
property, or services which are the subject of the transaction are
credit plan" mean a plan under which the creditor reasonably
contemplates repeated transactions, which prescribes the terms of such
transactions, and which provides for a finance charge which may be
computed from time to time on the outstanding unpaid balance. A credit
plan or open-end consumer credit plan which is an open end credit plan
or open-end consumer credit plan within the meaning of the preceding
sentence is an open end credit plan even if credit information is
verified from time to time. (k) The term "adequate notice", as used in section 133, means
a printed notice to a cardholder which sets forth the pertinent facts
clearly and conspicuously so that a person against whom it is to
operate could reasonably be expected to have noticed it and understood
its meaning. Such notice may be given to a cardholder by printing the
notice on any credit card, or on each periodic statement of account,
issued to the cardholder, or by any other means reasonably assuring the
receipt thereof by the cardholder. (l) The term "credit card" means any card, plate,
coupon book or other credit device existing for the purpose of
obtaining money, property, labor, or services on credit. (m) The term "accepted credit card" means any credit card
which the cardholder has requested and received or has signed or has
used, or authorized another to use, for the purpose of obtaining money,
property, labor, or services on credit. (n) The term "cardholder" means any person to whom a credit
card is issued or any person who has agreed with the card issuer to pay
obligations arising from the issuance of a credit card to another
person. (o) The term "card issuer" means any person who issues a
credit card, or the agent of such person with respect to such card. (p) The term "unauthorized use", as used in section 133,
means a use of a credit card by a person other than the cardholder who
does not have actual, implied, or apparent authority for such use and
from which the cardholder receives no benefit. (q) The term "discount" as used in section 167 means a
reduction made from the regular price. The term "discount' as used in
section 167 shall not mean a surcharge. (r) The term "surcharge" as used in section 103 and section
167 means any means of increasing the regular price to a cardholder
which is not imposed upon customers paying by cash, check, or similar
means. (s) The term "State" refers to any State, the Commonwealth of
Puerto Rico, the District of Columbia, and any territory or possession
of the United States. (t) The term "agricultural purposes" includes the production,
harvest, exhibition, marketing, transportation, processing, or
manufacture of agricultural products by a natural person who
cultivates, plants, propagates, or nurtures those agricultural
products, including but not limited to the acquisition of farmland,
real property with a farm residence, and personal property and services
used primarily in farming. (u) The term "agricultural products" includes agricultural,
horticultural, viticultural, and dairy products, livestock, wildlife,
poultry, bees, forest products, fish and shellfish, and any products
thereof, including processed and manufactured products, and any and all
products raised or produced on farms and any processed or manufactured
products thereof. (v) The term "material disclosures" means the disclosure, as
required by this title, of the annual percentage rate, the method of
determining the finance charge and the balance upon which a
finance charge will be imposed, the amount of the finance charge, the
amount to be financed, the total of payments, the number and amount of
payments, the due dates or periods of payments scheduled to repay
the indebtedness, and the disclosures required by section 129(a). (w) The term "dwelling" means a residential structure or
individual units of condominiums or cooperatives. (x) The term "residential mortgage transaction" means a
consensual security interest is created or retained against the
consumer's dwelling to finance the acquisition or initial construction
of such dwelling. (y) As used in this section and section 167, the term "regular
price" means the tag or posted price charged for the property or
service if a single price is tagged or posted, or the price charged for
the property or service when payment is made by use of an
credit plan or a credit
card if either (1) no price is tagged or posted, or (2) two prices are
tagged or posted, one of which is charged when payment is made by use
of an open-end credit plan or a credit card and the other when payment
is made by use of cash, check, or similar means. For purposes of this
definition, payment by check, draft, or other negotiable instrument
which may result in the debiting of an open-end credit plan or a credit
cardholder's open-end account shall not be considered payment made by
use of the plan or the account. (z) Any reference to any requirement imposed under this title or
any provision thereof includes reference to the regulations of the
Bureau under this title or the provision thereof in question. (aa) The disclosure of an amount or percentage which is greater
than the amount or percentage required to be disclosed under this title
does not in itself constitute a violation of this title. (bb) HIGH-COST MORTGAGE.-- (1) DEFINITION.-- (A) IN GENERAL.--The term "high-cost mortgage",
and a mortgage referred to in this subsection, means a consumer credit
transaction that is secured by the consumer's principal dwelling, other
than a reverse mortgage transaction, if-- (i) in the case of a credit transaction secured-- (I) by a first mortgage on the consumer's principal dwelling, the
annual percentage rate at consummation of the transaction will exceed
by more than 6.5 percentage points (8.5 percentage points, if the
dwelling is personal property and the transaction is for less than
$50,000) the average prime offer rate, as defined in section
129C(b)(2)(B), for a comparable transaction; or (II) by a subordinate or junior mortgage on the consumer's
principal dwelling, the annual percentage rate at consummation of the
transaction will exceed by more than 8.5 percentage points the average
prime offer rate, as defined in section 129C(b)(2)(B), for a comparable
transaction; (ii) the total points and fees payable in connection with the
transaction, other than bona fide third party charges not retained by
the mortgage originator, creditor, or an affiliate of the creditor or
mortgage originator, exceed-- (I) in the case of a transaction for $20,000 or more, 5 percent
of the total transaction amount; or (II) in the case of a transaction for less than $20,000, the
lesser of 8 percent of the total transaction amount or $1,000 (or such
other dollar amount as the Bureau shall prescribe by regulation); or (iii) the credit transaction documents permit the creditor to
charge or collect prepayment fees or penalties more than 36 months
after the transaction closing or such fees or penalties exceed, in the
aggregate, more than 2 percent of the amount prepaid. (B) INTRODUCTORY RATES TAKEN INTO ACCOUNT.--For purposes
of subparagraph (A)(i), the annual percentage rate of interest shall be
determined based on the following interest rate: (i) In the case of a fixed-rate transaction in which the annual
percentage rate will not vary during the term of the loan, the interest
rate in effect on the date of consummation of the transaction. (ii) In the case of a transaction in which the rate of interest
varies solely in accordance with an index, the interest rate determined
by adding the index rate in effect on the date of consummation of the
transaction to the maximum margin permitted at any time during the loan
agreement. (iii) In the case of any other transaction in which the rate may
vary at any time during the term of the loan for any reason, the
interest charged on the transaction at the maximum rate that may be
charged during the term of the loan. (C) MORTGAGE INSURANCE.--For the purposes of computing
the total points and fees under paragraph (4), the total points and
fees shall exclude-- (i) any premium provided by an agency of the Federal Government
or an agency of a State;
(ii) any amount that is not in excess of the amount payable under
policies in effect at the time of origination under section
203(c)(2)(A) of the National Housing Act (12 U.S.C. 1709(c)(2)(A)),
provided that the premium, charge, or fee is required to
refundable on a pro-rated
basis and the refund is automatically issued upon notification of the
satisfaction of the underlying mortgage loan; and (iii) any premium paid by the consumer after closing. (2)(A) After the 2-year period beginning on the effective date of
the regulations promulgated under section 155 of the Riegle Community
Development and Regulatory Improvement Act of 1994, and no more
frequently than biennially after the first increase or decrease under
this subparagraph, the Bureau may by regulation increase or decrease
the number of percentage points specified in paragraph (1)(A), if the
Bureau determines that the increase or decrease is-- (i) consistent with the consumer protections against abusive
lending provided by the amendments made by subtitle B of title I of the
Riegle Community Development and Regulatory Improvement Act of 1994;
and (ii) warranted by the need for credit. (B) An increase or decrease under subparagraph (A)-- (i) may not result in the number of percentage points referred to
in paragraph (1)(A)(i)(I) being less than 6 percentage points or
greater than 10 percentage points; and (ii) may not result in the number of percentage points referred
to in paragraph (1)(A)(i)(II) being less than 8 percentage points or
greater than 12 percentage points. (C) In determining whether to increase or decrease the number of
percentage points referred to in subparagraph (A), the Bureau shall
consult with representatives of consumers, including low-income
consumers, and lenders. (3) The amount specified in paragraph (1)(B)(ii) shall be
adjusted annually on January 1 by the annual percentage change in the
Consumer Price Index, as reported on June 1 of the year preceding such
adjustment. (4) For purposes of paragraph (1)(B), points and fees shall
include-- (A) all items included in the finance charge, except interest or
the time-price differential; (B) all compensation paid directly or indirectly by a consumer or
creditor to a mortgage originator from any source, including a mortgage
originator that is also the creditor in a table-funded transaction; (C) each of the charges listed in section 106(e) (except an
escrow for future payment of taxes), unless-- (i) the charge is reasonable; (ii) the creditor receives no direct or indirect compensation;
and (iii) the charge is paid to a third party unaffiliated with the
creditor; and (D) premiums or other charges payable at or before closing for
any credit life, credit disability, credit unemployment, or credit
property insurance, or any other accident, loss-of-income, life or
health insurance, or any payments directly or indirectly for any debt
cancellation or suspension agreement or contract, except that insurance
premiums or debt cancellation or suspension fees calculated and paid in
full on a monthly basis shall not be considered financed by the
creditor; (E) the maximum prepayment fees and penalties which may be
charged or collected under the terms of the credit transaction; (F) all prepayment fees or penalties that are incurred by the
consumer if the loan refinances a previous loan made or currently held
by the same creditor or an affiliate of the creditor; and (G) such other charges as the Board determines to be appropriate.
CREDIT PLANS.--In the case of open-end consumer credit plans,
points and fees shall be calculated, for purposes of this section and
section 129, by adding the total points and fees known at or before
closing, including the maximum prepayment penalties which may be
charged or collected under the terms of the credit transaction, plus
the minimum additional fees the consumer would be required to pay to
draw down an amount equal to the total credit line.
(6) This subsection shall not be construed to limit the rate of
interest or the finance charge that a person may charge a consumer for
any extension of credit.
(cc) The term "reverse mortgage transaction" means a
consumer's principal dwelling-- (1) securing one or more advances; and (2) with respect to which the payment of any principal, interest,
and shared appreciation or equity is due and payable (other than in the
case of default) only after-- (A) the transfer of the dwelling; (B) the consumer ceases to occupy the dwelling as a principal
dwelling; or (C) the death of the consumer. (cc) DEFINITIONS RELATING TO MORTGAGE ORIGINATION AND
RESIDENTIAL MORTGAGE LOANS.-- (1) COMMISSION.--Unless otherwise specified, the term
"Commission" means the Federal Trade Commission. (2) MORTGAGE ORIGINATOR.--The term "mortgage
originator"- (A) means any person who, for direct or indirect compensation or
gain, or in the expectation of direct or indirect compensation or
gain-- (i) takes a residential mortgage loan application; (ii) assists a consumer in obtaining or applying to obtain a
residential mortgage loan; or (iii) offers or negotiates terms of a residential mortgage loan; (B) includes any person who represents to the public, through
advertising or other means of communicating or providing information
(including the use of business cards, stationery, brochures, signs,
rate lists, or other promotional items), that such person can or will
provide any of the services or perform any of the activities described
in subparagraph (A); (C) does not include any person who is (i) not otherwise
described in subparagraph (A) or (B) and who performs purely
administrative or clerical tasks on behalf of a person who is described
in any such subparagraph, or (ii) an employee of a retailer of
manufactured homes who is not described in clause (i) or (iii) of
subparagraph (A) and who does not advise a consumer on loan terms
(including rates, fees, and other costs); (D) does not include a person or entity that only performs real
estate brokerage activities and is licensed or registered in accordance
with applicable State law, unless such person or entity is compensated
by a lender, a mortgage broker, or other mortgage originator or by any
agent of such lender, mortgage broker, or other mortgage originator; (E) does not include, with respect to a residential mortgage
loan, a person, estate, or trust that provides mortgage financing for
the sale of 3 properties in any 12-month period to purchasers of such
properties, each of which is owned by such person, estate, or trust and
serves as security for the loan, provided that such loan-- (i) is not made by a person, estate, or trust that has
constructed, or acted as a contractor for the construction of, a
residence on the property in the ordinary course of business of such
person, estate, or trust; (ii) is fully amortizing; (iii) is with respect to a sale for which the seller determines
in good faith and documents that the buyer has a reasonable ability to
repay the loan; (iv) has a fixed rate or an adjustable rate that is adjustable
after 5 or more years, subject to reasonable annual and lifetime
limitations on interest rate increases; and (v) meets any other criteria the Board may prescribe; (F) does not include the creditor (except the creditor in a
table-funded transaction) under paragraph (1), (2), or (4) of section
129B(c); and (G) does not include a servicer or servicer employees, agents and
contractors, including but not limited to those who offer or negotiate
terms of a residential mortgage loan for purposes of renegotiating,
modifying, replacing and subordinating principal of existing mortgages
where borrowers are behind in their payments, in default or have a
reasonable likelihood of being in default or falling behind. (3) NATIONWIDE MORTGAGE LICENSING SYSTEM AND
REGISTRY.--The term "Nationwide Mortgage Licensing System and
Registry" has the same meaning as in the Secure and Fair Enforcement
ORIGINATOR.--For purposes of this subsection, a person "assists
a consumer in obtaining or applying to obtain a residential mortgage
loan" by, among other things, advising on residential mortgage loan
(including rates, fees, and
other costs), preparing residential mortgage loan packages, or
collecting information on behalf of the consumer with regard to a
residential mortgage loan. (5) RESIDENTIAL MORTGAGE LOAN.--The term "residential
mortgage loan" means any consumer credit transaction that is secured
by a mortgage, deed of trust, or other equivalent consensual security
interest on a dwelling or on residential real property that includes a
dwelling, other than a consumer credit transaction under an open end
credit plan or, for purposes of sections 129B and 129C and section
128(a) (16), (17), (18), and (19), and sections 128(f) and 130(k), and
any regulations promulgated thereunder, an extension of credit relating
to a plan described in section 101(53D) of title 11, United States
Code. (6) SECRETARY.--The term "Secretary", when used in
connection with any transaction or person involved with a residential
mortgage loan, means the Secretary of Housing and Urban Development. (7) SERVICER.--The term "servicer" has the same
meaning as in section 6(i)(2) of the Real Estate Settlement Procedures
Act of 1974 (12 U.S.C. 2605(i)(2)). (dd) BONA FIDE DISCOUNT POINTS AND PREPAYMENT PENALTIES.--
For the purposes of determining the amount of points and fees for
purposes of subsection (aa), either the amounts described in paragraph
(1) or (2) of the following paragraphs, but not both, shall be
excluded: (1) Up to and including 2 bona fide discount points payable by
the consumer in connection with the mortgage, but only if the interest
rate from which the mortgage's interest rate will be discounted does
not exceed by more than 1 percentage point-- (A) the average prime offer rate, as defined in section 129C; or (B) if secured by a personal property loan, the average rate on a
loan in connection with which insurance is provided under title I of
the National Housing Act (12 U.S.C. 1702 et seq.). (2) Unless 2 bona fide discount points have been excluded under
paragraph (1), up to and including 1 bona fide discount point payable
by the consumer in connection with the mortgage, but only if the
interest rate from which the mortgage's interest rate will be
discounted does not exceed by more than 2 percentage points-- (A) the average prime offer rate, as defined in section 129C; or (B) if secured by a personal property loan, the average rate on a
the National Housing Act (12 U.S.C. 1702 et seq.). (3) For purposes of paragraph (1), the term "bona fide
discount points" means loan discount points which are knowingly paid
by the consumer for the purpose of reducing, and which in fact result
in a bona fide reduction of, the interest rate or time-price
differential applicable to the mortgage. (4) Paragraphs (1) and (2) shall not apply to discount points
used to purchase an interest rate reduction unless the amount of the
interest rate reduction purchased is reasonably consistent with
established industry norms and practices for secondary mortgage market
transactions. [Codified to 15 U.S.C. 1602] [Source: Section 103 of title I of the Act of
May 29, 1968 (Pub. L. No. 90--321; 82 Stat. 147), effective May 29,
1968, as amended by section 501 of title V of the Act of October 26,
1970 (Pub. L. No. 91--508; 84 Stat. 1126), effective October 26, 1970;
section 303 of title III of the Act of October 28, 1974 (Pub. L. No.
93--495; 88 Stat. 1511), effective October 28, 1975; section 3(a) of
the Act of February 27, 1976 (Pub. L. No. 94--222; 90 Stat. 197),
effective February 27, 1976; sections 602, 603, 604, and 612 of title
VI of the Act of March 31, 1980 (Pub. L. No. 96--221; 94 Stat. 168,
169, 175, and 176), effective October 1, 1982; section 102 of title I
of the Act of July 27, 1981 (Pub. L. No. 97--25; 95 Stat. 144),
effective April 10, 1982; section 702(a) of title VII of the Act of
October 15, 1982 (Pub. L. No. 97--320; 96 Stat. 1538), effective
October 1, 1982; sections 152(a)--(d) and 154(a) of title I of the Act
of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2190 and 2196),
effective September 23, 1994; section 108 of title I of the Act of May
22, 2009 (Pub. L. No. 111--24; 123 Stat. 1743), effective May 22,
2009; section 1011(b) of title X of the Act of August 14, 2008 (Pub. L.
No. 110--315; 122 Stat. 3481), effective August 14, 2008; section
1100A(1) of title XI of the Act of July 21, 2010 (Pub. L. No.
111--203; 124 Stat. 2107), effective July 21, 2010; section 1431 of
2157--2159), effective July 21, 2010]
§ 104. Exempted transactions This title does not apply to the following: (1) Credit transactions involving extensions of credit primarily
for business, commercial, or agricultural purposes, or to government or
governmental agencies or instrumentalities, or to organizations. (2) Transactions in securities or commodities accounts by a
broker-dealer registered with the Securities and Exchange Commission. (3) Credit transactions, other than those in which a security
property used or expected to be used as the principal dwelling of the
consumer and other than private education loans (as that term is
defined in section 140(a)), in which the total amount financed exceeds
$50,000. (4) Transactions under public utility tariffs, if the Bureau
determines that a State regulatory body regulates the charges for the
public utility services involved, the charges for delayed payment, and
any discount allowed for early payment. (5) Transactions for which the Bureau, by rule, determines that
coverage under this title is not necessary to carry out the purposes of
this title. (6) [Repealed] (7) Loans made, insured, or guaranteed pursuant to a program
authorized by title IV of the Higher Education Act of 1965 (20 U.S.C.
1070 et seq.). [Codified to 15 U.S.C. 1603] [Source: Section 104 of title I of the Act of May 29,
1968 (Pub. L. No. 90--321; 82 Stat. 147), effective May 29, 1968, as
amended by section 402 of title IV of the Act of October 28, 1974 (Pub.
L. No. 93--495; 88 Stat. 1517), effective October 28, 1974; section 603
of title VI of the Act of March 31, 1980 (Pub. L. No. 96--221; 94 Stat.
169), effective October 1, 1982; and section 701(a) of title VII of the
Act of October 15, 1982 (Pub. L. No. 97--320; 96 Stat. 1538), effective
October 15, 1982; section 2102(a) of title II of the Act of September
30, 1996 (Pub. L. No. 104-208; 110 Stat 3009-398), effective September
30, 1996; section 1022 of title X of the Act of August 14, 2008 (Pub.
L. No. 110--315; 122 Stat. 3488), effective August 14, 2008; section
1100A(2) and 1100E(a)(1) of title XI of the Act of July 21, 2010
(Pub. L. No. 111--203; 124 Stat. 2107 and 2111), effective July 21,
(b) ADJUSTMENTS FOR INFLATION.--On and after
December 31, 2011, the Bureau shall adjust annually the dollar amounts
described in sections 104(3) and 181(1) of the Truth in Lending Act (as
amended by this section), by the annual percentage increase in the
Consumer Price Index for Urban Wage Earners and Clerical Workers, as
published by the Bureau of Labor Statistics, rounded to the nearest
multiple of $100, or $1,000, as applicable. [Codified to 15 U.S.C. 1602 note] [Source: Section 1100E(b) of title XI of the Act of July 21, 2010
(Pub. L. No. 111--203; 124 Stat. 2111), effective July 21,
§ 105. Disclosure guidelines (a) PROMULGATIONS, CONTENTS, ETC., OF REGULATIONS.--The
Bureau shall prescribe regulations to carry out the purposes of this
title. Except with respect to the provisions of section 129 that apply
to a mortgage referred to in section 103(aa), such regulations may
contain such additional requirements, classifications,
adjustments and exceptions for all or any class of transactions, as in
the judgment of the Bureau are necessary or proper to effectuate the
purposes of this title, to prevent circumvention or evasion thereof, or
to facilitate compliance therewith. (b) MODEL DISCLOSURE FORMS AND CLAUSES; PUBLICATION, CRITERIA,
COMPLIANCE, ETC.--The Bureau shall publish a single, integrated
disclosure for mortgage loan transactions (including real estate
settlement cost statements) which includes the disclosure requirements
of this title in conjunction with the disclosure requirements of the
Real Estate Settlement Procedures Act of 1974 that, taken together, may
apply to a transaction that is subject to both or either provisions of
law. The purpose of such model disclosure shall be to facilitate
compliance with the disclosure requirements of this title and the Real
of 1974, and to aid the borrower or lessee in understanding the
transaction by utilizing readily understandable language to simplify
the technical nature of the disclosures. In devising such forms, the
Bureau shall consider the use by creditors or lessors of data
processing or similar automated equipment. Nothing in this title may be
construed to require a creditor or lessor to use any such model form or
clause prescribed by the Bureau under this section. A creditor or
lessor shall be deemed to be in compliance with the disclosure
provisions of this title with respect to other than numerical
disclosures if the creditor or lessor (1) uses any appropriate model
form or clause as published by the Bureau, or (2) uses any such model
form or clause and changes it by (A) deleting any information which is
not required by this title, or (B) rearranging the format, if in making
such deletion or rearranging the format, the creditor or lessor does
not affect the substance, clarity, or meaningful sequence of the
disclosure. (c) PROCEDURES APPLICABLE FOR ADOPTION OF MODEL FORMS AND
CLAUSES.--Model disclosure forms and clauses shall be adopted by
the Bureau after notice duly given in the Federal Register and an
opportunity for public comment in accordance with section 553 of title
5, United States Code. (d)1 EFFECTIVE DATES OF REGULATIONS CONTAINING NEW DISCLOSURE
REQUIREMENTS.--Any regulation of the Bureau, or any amendment or
interpretation thereof, requiring any disclosure which differs from the
disclosures previously required by this chapter, chapter 4, or chapter
5, or by any regulation of the Bureau promulgated thereunder shall have
an effective date of that October 1 which follows by at least six
months the date of promulgation, except that the Bureau may at its
discretion take interim action by regulation, amendment, or
interpretation to lengthen the period of time permitted for creditors
or lessors to adjust their forms to accommodate new requirements or
shorten the length of time for creditors or lessors to make such
adjustments when it makes a specific finding that such action is
necessary to comply with the findings of a court or to prevent unfair
or deceptive disclosure practices. Notwithstanding the previous
sentence, any creditor or lessor may comply with any such newly
promulgated disclosure requirements prior to the effective date of the
requirements. (f) EXEMPTION AUTHORITY.-- (1) IN GENERAL.--The Bureau may exempt, by regulation,
from all or part of this title all or any class of transactions, other
than transactions involving any mortgage described in section 103(aa),
for which, in the determination of the Bureau, coverage under all or
part of this title does not provide a meaningful benefit to consumers
in the form of useful information or protection. (2) FACTORS FOR CONSIDERATION.--In determining which
classes of transactions to exempt in whole or in part under paragraph
(1), the Bureau shall consider the following factors and publish its
rationale at the time a proposed exemption is published for comment: (A) The amount of the loan and whether the disclosures, right of
rescission, and other provisions provide a benefit to the consumers who
are parties to such transactions, as determined by the Bureau. (B) The extent to which the requirements of this title
complicate, hinder, or make more expensive the credit process for the
class of transactions. (C) The status of the borrower, including-- (i) any related financial arrangements of the borrower, as
determined by the Bureau; (ii) the financial sophistication of the borrower relative to the
type of transaction; and (iii) the importance to the borrower of the credit, related
supporting property, and coverage under this title, as determined by
the Bureau; (D) whether the loan is secured by the principal residence of the
consumer; and (E) whether the goal of consumer protection would be undermined
by such an exemption. (g) WAIVER FOR CERTAIN BORROWERS.
(1) IN GENERAL.--The Bureau, by regulation, may exempt
from the requirements of this title certain credit transactions if-- (A) the transaction involves a consumer-- (i) with an annual earned income of more than $200,000; or (ii) having net assets in excess of $1,000,000 at the time of the
transaction; and (B) a waiver that is handwritten, signed, and dated by the
consumer is first obtained from the consumer. (2) ADJUSTMENTS BY THE BOARD.--The Bureau, at its
discretion, may adjust the annual earned income and net asset
requirements of paragraph (1) for inflation. (h) DEFERENCE.--Notwithstanding any power granted to any
to the meaning or interpretation of any provision of this title, other
than section 129E or 129H, shall be applied as if the Bureau were the
only agency authorized to apply, enforce, interpret, or administer the
provisions of this title. (i) AUTHORITY OF THE BUREAU TO PRESCRIBE
RULES.--Notwithstanding subsection (a), the Bureau shall have
authority to prescribe rules under this title with respect to a person
described in section 1029(a) of the Consumer Financial Protection Act
of 2010. Regulations prescribed under this subsection may contain such
classifications, differentiations, or other provisions, as in the
judgment of the Bureau are necessary or proper to effectuate the
to facilitate compliance therewith. [Codified to 15 U.S.C. 1604] [Source: Section 105 of title I of the Act of May 29, 1968 (Pub.
L. No. 90--321; 82 Stat. 148), effective May 29, 1968; as amended by
section 605 of title VI of the Act of March 31, 1980 (Pub. L. No.
96--221; 94 Stat. 170), effective October 1, 1982; section 152(e)(2)(A)
of title I of the Act of September 23, 1994 (Pub. L. No. 103--325; 108
Stat. 2194), effective September 23, 1994; sections 2102(b) and 2104 of
title II of the Act of September 30, 1996 (Pub. L. No. 104--208; 110
Stat. 3009--399 and 3009--401, respectively), effective September 30,
1996; section 1100A(2), 1100A(4), 1100A(5), (6), and (7) of title XI of
the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 2107--2108),
effective July 21, 2011; section 1472(c) of title XIV of the Act of
July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 2190), effective July
§ 106. Determination of finance charge (a) ``FINANCE CHARGE'' DEFINED.--Except as otherwise
provided in this section, the amount of the finance charge in
connection with any consumer credit transaction shall be determined as
the sum of all charges, payable directly or indirectly by the person to
whom the credit is extended, and imposed directly or indirectly by the
creditor as an incident to the extension of credit. The finance charge
does not include charges of a type payable in a comparable cash
transaction. The finance charge shall not include fees and amounts
imposed by third party closing agents (including settlement agents,
attorneys, and escrow and title companies) if the creditor does not
require the imposition of the charges or the services provided and does
not retain the charges. Examples of charges which are included in the
finance charge include any of the following types of charges which are
applicable: (1) Interest, time price differential, and any amount payable
under a point, discount, or other system of additional charges. (2) Service or carrying charge. (3) Loan fee, finder's fee, or similar charge. (4) Fee for an investigation or credit report. (5) Premium or other charge for any guarantee or insurance
protecting the creditor against the obligor's default or other credit
loss. (6) Borrower-paid mortgage broker fees, including fees paid
directly to the broker or the lender (for delivery to the broker)
whether such fees are paid in cash or financed. (b) LIFE, ACCIDENT, OR HEALTH INSURANCE PREMIUMS INCLUDED IN
FINANCE CHARGE.--Charges or premiums for credit life, accident, or
health insurance written in connection with any consumer credit
transaction shall be included in the finance charge unless
(1) the coverage of the debtor by the insurance is not a factor
in the approval by the creditor of the extension of credit, and this
fact is clearly disclosed in writing to the person applying for or
obtaining the extension of credit; and (2) in order to obtain the insurance in connection with the
extension of credit, the person to whom the credit is extended must
give specific affirmative written indication of his desire to do so
after written disclosure to him of the cost thereof. (c) PROPERTY DAMAGE AND LIABILITY INSURANCE PREMIUMS INCLUDED
IN FINANCE CHARGE.--Charges or premiums for insurance, written in
connection with any consumer credit transaction, against loss of or
damage to property or against liability arising out of the ownership or
use of property, shall be included in the finance charge unless a clear
and specific statement in writing is furnished by the creditor to the
person to whom the credit is extended, setting forth the cost of the
insurance if obtained from or through the creditor, and stating that
the person to whom the credit is extended may choose the person through
which the insurance is to be obtained. (d) ITEMS EXEMPTED FROM COMPUTATION OF FINANCE CHARGE IN ALL
CREDIT TRANSACTIONS.--If any of the following items is itemized and
disclosed in accordance with the regulations of the Bureau in
connection with any transaction, then the creditor need not include
that item in the computation of the finance charge with respect to that
transaction: (1) Fees and charges prescribed by law which actually are or will
be paid to public officials for determining the existence of or for
perfecting or releasing or satisfying any security related to the
credit transaction. (2) The premium payable for any insurance in lieu of perfecting
any security interest otherwise required by the creditor in connection
with the transaction, if the premium does not exceed the fees and
charges described in paragraph (1) which would otherwise be payable. (3) Any tax levied on security instruments or on documents
evidencing indebtedness if the payment of such taxes is a precondition
for recording the instrument securing the evidence of indebtedness. (e) ITEMS EXEMPTED FROM COMPUTATION OF FINANCE CHARGE IN
EXTENSION OF CREDIT SECURED BY AN INTEREST IN REAL PROPERTY.--The
following items, when charged in connection with any extension of
credit secured by an interest in real property, shall not be included
in the computation of the finance charge with respect to that
transaction: (1) Fees or premiums for title examination, title insurance, or
similar purposes. (2) Fees for preparation of loan-related documents. (3) Escrows for future payments of taxes and insurance. (4) Fees for notorizing deeds and other documents. (5) Appraisal fees, including fees related to any pest
infestation or flood hazard inspections conducted prior to closing. (6) Credit reports. (f) TOLERANCES FOR ACCURACY.--In connection with credit
transactions not under an open end credit plan that are secured by real
property or a dwelling, the disclosure of the finance charge and other
disclosures affected by any finance charge-- (1) shall be treated as being accurate for purposes of this title
if the amount disclosed as the finance charge-- (A) does not vary from the actual finance charge by more than
$100; or (B) is greater than the amount required to be disclosed under
this title; and (2) shall be treated as being accurate for purposes of section
125 if-- (A) except as provided in subparagraph (B), the amount disclosed
as the finance charge does not vary from the actual finance charge by
more than an amount equal to one-half of one percent of the total
amount of credit extended; or (B) in the case of a transaction, other than a mortgage referred
to in section 103(aa), which-- (i) is a refinancing of the principal balance then due and any
accrued and unpaid finance charges of a residential mortgage
transaction as defined in section 103(w), or is any subsequent
refinancing of such a transaction; and (ii) does not provide any new consolidation or new advance; if the amount disclosed as the finance charge does not
vary from the actual finance charge by more than an amount equal to one
percent of the total amount of credit extended.
[Codified to 15 U.S.C. 1605] [Source: Section 106 of title I of the Act of May 29, 1968 (Pub.
section 606 of title VI of the Act of March 31, 1980 (Pub. L. No.
96--221; 94 Stat. 170), effective October 1, 1982; sections 2 and 3 of
the Act of September 30, 1995 (Pub. L. No. 104--29; 109 Stat. 271 and
272), effective September 30, 1995, except the amendment adding
paragraph (a)(6), which is effective the earlier of: (A) 60 days after
the date on which the Board of Governors of the Federal Reserve System
issues final regulations under paragraph (3) of the Act of September
30, 1995; or (B) September 30, 1996; section 1100A(2) of title XI of
the Act of July 21, 2010 (Pub. L. No, 111--203; 124 Stat. 2107),
§ 107. Determination of annual percentage rate (a) ``ANNUAL PERCENTAGE RATE'' DEFINED.--The annual
percentage rate applicable to any extension of consumer credit shall be
determined, in accordance with the regulations of the Bureau, (1) in the case of any extension of credit other than under an
open end credit plan, as (A) that nominal annual percentage rate which will yield a sum
equal to the amount of the finance charge when it is applied to the
unpaid balances of the amount financed, calculated according to the
actuarial method of allocating payments made on a debt between the
amount financed and the amount of the finance charge, pursuant to which
a payment is applied first to the accumulated finance charge and the
balance is applied to the unpaid amount financed; or (B) the rate determined by any method prescribed by the Bureau as
a method which materially simplifies computation while retaining
reasonable accuracy as compared with the rate determined under
subparagraph (A). (2) in the case of any extension of credit under an open end
credit plan, as the quotient (expressed as a percentage) of the total
finance charge for the period to which it relates divided by the amount
upon which the finance charge for that period is based, multiplied by
the number of such periods in a year. (b) COMPUTATION OF RATE OF FINANCE CHARGES FOR BALANCES WITHIN
A SPECIFIED RANGE.--Where a creditor imposes the same finance
charge for balances within a specified range, the annual percentage
rate shall be computed on the median balance within the range, except
that if the Bureau determines that a rate so computed would not be
meaningful, or would be materially misleading, the annual percentage
rate shall be computed on such other basis as the Bureau may by
regulation require. (c) ALLOWABLE TOLERANCES FOR PURPOSES OF COMPLIANCE WITH
DISCLOSURE REQUIREMENTS.--The disclosure of an annual percentage
rate is accurate for the purpose of this title if the rate disclosed is
within a tolerance not greater than one-eighth of 1 per centum more or
less than the actual rate or rounded to the nearest one-fourth of 1 per
centum. The Bureau may allow a greater tolerance to simplify compliance
where irregular payments are involved. (d) USE OF RATE TABLES OR CHARTS HAVING ALLOWABLE VARIANCE
FROM DETERMINED RATES.--The Bureau may authorize the use of rate
tables or charts which may provide for the disclosure of annual
percentage rates which vary from the rate determined in accordance with
subsection (a)(1)(A) by not more than such tolerances as the Bureau may
allow. The Bureau may not allow a tolerance greater than 8 per centum
of that rate except to simplify compliance where irregular payments are
involved. (e) AUTHORIZATION OF TOLERANCES IN DETERMINING ANNUAL
PERCENTAGE RATES.--In the case of creditors determining the annual
percentage rate in a manner other than as described in subsection (d),
the Bureau may authorize other reasonable tolerances. [Codified to 15 U.S.C. 1606] [Source: Section 107 of title I of the Act of May 29,
1968 (Pub. L. No. 90--321; 82 Stat. 149), effective May 29, 1968; as
amended by section 607 of title VI of the Act of March 31, 1980 (Pub.
L. No. 96--221; 94 Stat. 170), effective October 1, 1982; section
1100A(2) of
title XI of the Act of July
21, 2011 (Pub. L. No. 111--203; 124 Stat. 2107), effective July 21,
§ 108. Administrative enforcement (a) ENFORCING AGENCIES.--Subject to subtitle B of the
branches and Federal agencies of foreign banks;
Reserve System), and insured State branches of foreign banks; (2) the Federal Credit Union Act, by the Director of the National
Credit Union Administration, with respect to any Federal credit union; (3) the Federal Aviation Act of 1958, by the Secretary of
Transportation, with respect to any air carrier or foreign air carrier
subject to that Act; (4) the Packers and Stockyards Act, 1921 (except as provided in
section 406 of that Act), by the Secretary of Agriculture, with respect
to any activities subject to that Act; (5) the Farm Credit Act of 1971, by the Farm Credit
Administration with respect to any Federal land bank, Federal land bank
association, Federal intermediate credit bank, or production credit
association; and (6) subtitle E of the Consumer Financial Protection Act of 2010,
by the Bureau, with respect to any person subject to this title. (7) sections 21B and 21C of the Securities Exchange Act of 1934,
in the case of a broker or dealer, other than a depository institution,
by the Securities Exchange Commission. (b) For the purpose of the exercise by any agency referred to in
subsection (a) of its powers under any Act referred to in that
referred to in subsection (a), each of the agencies referred to in that
any requirement imposed under this title, any other authority conferred
(c) OVERALL ENFORCEMENT AUTHORITY OF THE FEDERAL TRADE
other Government agency under any of paragraphs (1) through (5) of
with the requirements under this title, irrespective of whether that
under the Federal Trade Commission Act. (d) The authority of the Bureau to issue regulations under this
title does not impair the authority of any other agency designated in
this section to make rules respecting its own procedures in enforcing
compliance with requirements imposed under this title. (e)(1) In carrying out its enforcement activities under this
section, each agency referred to in subsection (a) or (c), in cases
where an annual percentage rate or finance charge was inaccurately
disclosed, shall notify the creditor of such disclosure error and is
provisions of this subsection to require the creditor to make an
adjustment to the account of the person to whom credit was extended, to
assure that such person will not be required to pay a finance charge in
excess of the finance charge actually disclosed or the dollar
equivalent of the annual percentage rate actually disclosed, whichever
is lower. For the purposes of this subsection, except where such
disclosure error resulted from a willful violation which was intended
to mislead the person to whom credit was extended, in determining
whether a disclosure error has occurred and in calculating any
adjustment, (A) each agency shall apply (i) with respect to the annual
percentage rate, a tolerance of one-quarter of 1 percent more or less
than the actual rate, determined without regard to section 107(c) of
this title, and (ii) with respect to the finance charge, a
corresponding numerical tolerance as generated by the tolerance
provided under this subsection for the annual percentage rate; except
that (B) with respect to transactions consummated after two years
following the effective date of section 608 of the Truth in Lending
Simplification and Reform Act, each agency shall apply (i) for
transactions that have a scheduled amortization of ten years or less,
with respect to the annual percentage rate, a tolerance not to exceed
one-quarter of 1 percent more or less than the actual rate, determined
without regard to section 107(c) of this title, but in no event a
tolerance of less than the tolerances allowed under section 107(c),
(ii) for transactions that have a scheduled amortization of more than
ten years, with respect to the annual percentage rate, only such
tolerances as are allowed under section 107(c) of this title, and (iii)
for all transactions, with respect to the finance charge, a
corresponding numerical tolerance as generated by the tolerances
provided under this subsection for the annual percentage rate. (2) Each agency shall require such an adjustment when it
determines that such disclosure error resulted from (A) a clear and
consistent pattern or practice of violations, (B) gross negligence, or
(C) a willful violation which was intended to mislead the person to
whom the credit was extended. Notwithstanding the preceding sentence,
except where such disclosure error resulted from a willful violation
which was intended to mislead the person to whom credit was extended,
an agency need not require such an adjustment if it determines that
such disclosure error-- (A) resulted from an error involving the disclosure of a fee or
charge that would otherwise be excludable in computing the finance
charge, including but not limited to violations involving the
disclosures described in sections 106(b), (c) and (d) of this title, in
which event the agency may require such remedial action as it
determines to be equitable, except that for transactions consummated
after two years after the effective date of section 608 of the Truth in
Lending Simplification and Reform Act, such an adjustment shall be
ordered for violations of section 106(b); (B) involved a disclosed amount which was 10 per centum or less
of the amount that should have been disclosed and (i) in cases where
the error involved a disclosed finance charge, the annual percentage
rate was disclosed correctly, and (ii) in cases where the error
involved a disclosed annual percentage rate, the finance charge was
disclosed correctly; in which event the agency may require such
adjustment as it determines to be equitable; (C) involved a total failure to disclose either the annual
percentage rate or the finance charge, in which event the agency may
require such adjustment as it determines to be equitable; or (D) resulted from any other unique circumstance involving clearly
technical and nonsubstantive disclosure violations that do not
adversely affect information provided to the consumer and that have not
misled or otherwise deceived the consumer. In the case of other such disclosure errors, each agency may require
such an adjustment. (3) Notwithstanding paragraph (2), no adjustment shall be
ordered-- (A) if it would have a significantly adverse impact upon the
safety or soundness of the creditor, but in any such case, the agency
may-- (i) require a partial adjustment in an amount which does not have
such an impact; or
(ii) require the full adjustment, but permit the creditor to make
the required adjustment in partial payments over an extended period of
time which the agency considers to be reasonable, if (in the case of
an agency referred to in paragraph (1), (2), or (3) of subsection (a)),
the agency determines that a partial adjustment or making partial
payments over an extended period is necessary to avoid causing the
creditor to become undercapitalized pursuant to section 38 of the
(B) the amount of the adjustment would be less than $1, except
that if more than one year has elapsed since the date of the violation,
the agency may require that such amount be paid into the Treasury of
the United States, or (C) except where such disclosure error resulted
from a willful violation which was intended to mislead the person to
whom credit was extended, in the case of an open-end credit plan, more
than two years after the violation, or in the case of any other
extension of credit, as follows: (i) with respect to creditors that are subject to examination
by the agencies referred to in paragraphs (1) through (3) of section
108(a) of this title, except in connection with violations arising from
practices identified in the current examination and only in connection
with transactions that are consummated after the date of the
immediately preceding examination, except that where practices giving
rise to violations identified in earlier examinations have not been
corrected, adjustments for those violations shall be required in
connection with transactions consummated after the date of the
examination in which such practices were first identified; (ii) with respect to creditors that are not subject to
examination by such agencies, except in connection with transactions
that are consummated after May 10, 1978; and (iii) in no event after the later of (I) the expiration of the
life of the credit extension, or (II) two years after the agreement to
extend credit was consummated. (4)(A) Notwithstanding any other provision of this section, an
adjustment under this subsection may be required by an agency referred
to in subsection (a) or (c) only by an order issued in accordance with
cease and desist procedures provided by the provision of law referred
to in such subsections. (B) In the case of an agency which is not authorized to conduct
cease and desist proceedings, such an order may be issued after an
agency hearing on the record conducted at least thirty but not more
than sixty days after notice of the alleged violation is served on the
creditor. Such a hearing shall be deemed to be a hearing which is
subject to the provisions of section 8(h) of the Federal Deposit
Insurance Act and shall be subject to judicial review as provided
therein. (5) Except as otherwise specifically provided in this subsection
and notwithstanding any provision of law referred to in subsection (a)
or (c), no agency referred to in subsection (a) or (c) may require a
creditor to make dollar adjustments for errors in any requirements
under this title, except with regard to the requirements of section
165. (6) A creditor shall not be subject to an order to make an
adjustment, if within sixty days after discovering a disclosure error,
whether pursuant to a final written examination report or through the
creditor's own procedures, the creditor notifies the person concerned
of the error and adjusts the account so as to assure that such person
will not be required to pay a finance charge in excess of the finance
charge actually disclosed or the dollar equivalent of the annual
percentage rate actually disclosed, whichever is lower. (7) Notwithstanding the second sentence of subsection (e)(1),
subsection (e)(3)(C)(i), and subsection (e)(3)(C)(ii), each agency
referred to in subsection (a) or (c) shall require an adjustment for an
annual percentage rate disclosure error that exceeds a tolerance of one
quarter of one percent less than the actual rate, determined without
regard to section 107(c) of this title with respect to any transaction
consummated between January 1, 1977, and the effective date of section
608 of the Truth in Lending Simplification and Reform Act. The terms used in paragraph (1) that are not defined in this title
[Codified to 15 U.S.C. 1607] [Source: Section 108 of title I of the Act of May 29, 1968 (Pub.
L. No. 90--321; 82 Stat. 150), effective May 29, 1968, as amended by
section 403 of title IV of the Act of October 28, 1974 (Pub. L. No.
93--495; 88 Stat. 1517), effective October 28, 1974; section 608 of
title VI of the Act of March 31, 1980 (Pub. L. No. 96--221; 94 Stat.
171), effective March 31, 1980; section 9(n) of the Act of October 4,
1984 (Pub. L. No. 98--443; 98 Stat. 1708), effective October 4, 1984;
section 744(k) of title VII of the Act of August 9, 1989 (Pub. L. No.
101--73; 103 Stat. 439), effective August 9, 1989; section 212(b) of
title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105
Stat. 2299), effective December 19, 1991; section 1604(a)(5) of title
XVI of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat.
4082), effective December 19, 1991; section 2106 of title II of the Act
of September 30, 1996 (Pub. L. No. 104--208; 110 Stat. 3009--402),
effective September 30, 1996; section 1100A(2) and 1100A(8) of title XI
of the Act of July 21, 2010 (Pub. L. No, 111--203; 124 Stat. 2107),
effective July 21, 2011; section 1414(b) of title XIV of the Act of
July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 2152), effective July
§ 109. Views of other agencies In the exercise of its functions under this title, the Bureau may
obtain upon request the views of any other Federal agency which, in the
judgment of the Bureau, exercises regulatory or supervisory functions
with respect to any class of creditors subject to this title. [Codified to 15 U.S.C. 1608] [Source: Section 109 of title I of the Act of May 28, 1968 (Pub.
L. No. 90--321; 82 Stat. 150), effective May 29, 1968; section 1100A(2)
of title XI of the Act of July 21, 2010 (Pub. L. No. 111--203; 124
Stat. 2107), effective July 21,
§ 110. [Repealed] [Source: Section 110 of title I of the Act of May 29,
1968 (Pub. L. No. 90--321; 82 Stat. 151), effective May 29, 1968, as
repealed by section 3(b)(1) of the Act of March 23, 1976 (Pub. L. No.
94--239; 90 Stat. 253), effective March 23,
§ 111. Effect on other laws (a)(1) Except as provided in subsection (e), chapters 1, 2, and 3
do not annul, alter, or affect the laws of any State relating to the
disclosure of information in connection with credit transactions,
except to the extent that those laws are inconsistent with the
provisions of this title, and then only to the extent of the
inconsistency. Upon its own motion or upon the request of any creditor,
State, or other interested party which is submitted in accordance with
procedures prescribed in regulations of the Bureau, the Bureau shall
determine whether any such inconsistency exists. If the Bureau
determines that a State-required disclosure is inconsistent, creditors
located in that State may not make disclosures using the inconsistent
term or form, and shall incur no liability under the law of that State
for failure to use such term or form, notwithstanding that such
determination is subsequently amended, rescinded, or determined by
judicial or other authority to be invalid for any reason. (2) Upon its own motion or upon the request of any creditor,
determine whether any disclosure required under the law of any State is
substantially the same in meaning as a disclosure required under this
title, and such State-required disclosure may not be made in lieu of
the disclosures applicable to certain mortgages under section 129. If
the Bureau determines that a State-required disclosure is substantially
the same in meaning as a disclosure required by this title, then
creditors located in that State may make such disclosure in compliance
State law in lieu of the
disclosure required by this title, except that the annual percentage
rate and finance charge shall be disclosed as required by section 122. (b) Except as provided in section 129, this title does not
otherwise annul, alter or affect in any manner the meaning, scope or
applicability of the laws of any State, including, but not limited to,
laws relating to the types, amounts or rates of charges, or any element
or elements of charges, permissible under such laws in connection with
the extension or use of credit, nor does this title extend the
applicability of those laws to any class of persons or transactions to
which they would not otherwise apply. The provisions of section 129 do
not annul, alter, or affect the applicability of the laws of any State
or exempt any person subject to the provisions of section 129 from
complying with the laws of any State, with respect to the requirements
for mortgages referred to in section 103(aa), except to the extent that
those State laws are inconsistent with any provisions of section 129,
and then only to the extent of the inconsistency. (c) In any action or proceeding in any court involving a consumer
credit sale, the disclosure of the annual percentage rate as required
under this title in connection with that sale may not be received as
evidence that the sale was a loan or any type of transaction other than
a credit sale. (d) Except as specified in sections 125, 130, and 166, this title
and the regulations issued thereunder do not affect the validity or
enforceability of any contract or obligation under State or Federal
law. (e) CERTAIN CREDIT AND CHARGE CARD APPLICATION AND
SOLICITATION DISCLOSURE PROVISIONS.--The provisions of subsection
(c) of section 122 and subsections (c), (d), (e), and (f) of section
127 shall supersede any provision of the law of any State relating to
the disclosure of information in any credit or charge card application
or solicitation which is subject to the requirements of section 127(c)
or any renewal notice which is subject to the requirements of section
127(d), except that any State may employ or establish [Codified to 15 U.S.C. 1610] [Source: Section 111 of title I of the Act of May 29,
amended by section 307(b) of title III of the Act of October 28, 1974
(Pub. L. No. 93--495; 88 Stat. 1516), effective October 28, 1975;
section 609 of title VI of the Act of March 31, 1980 (Pub. L. No.
96--221; 94 Stat. 173), effective October 1, 1982; section 4 of the Act
of November 3, 1988 (Pub. L. No. 100--583; 102 Stat. 2967), effective
November 3, 1988; section 152(e)(2)(B)--(C) of title I of the Act of
September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2194), effective
September 23, 1994; section 1100A(2) of title XI of the Act of July 21,
2010 (Pub. L. No. 111--203; 124 Stat. 2107), effective July 21,
§ 112. Criminal liability for willful and knowing violation Whoever willfully and knowingly (1) gives false or inaccurate information or fails to provide
information which he is required to disclose under the provisions of
this title or any regulation issued thereunder, (2) uses any chart or table authorized by the Bureau under
section 107 in such a manner as to consistently understate the annual
percentage rate determined under section 107(a)(1)(A), or (3) otherwise fails to comply with any requirement imposed under
this title, shall be fined not more than $5,000 or imprisoned not more
than one year, or both. [Codified to 15 U.S.C. 1611] [Source: Section 112 of title I of the Act of May 29,
1968 (Pub. L. No. 90--321; 82 Stat. 151), effective May 29, 1968;
section 1100A(2) of title XI of the Act of July 21, 2010 (Pub. L. No.
111--203; 124 Stat. 2107), effective July 21,
§ 113. Effect on governmental agencies (a) CONSULTATION REQUIREMENTS RESPECTING COMPLIANCE OF CREDIT
INSTRUMENTS ISSUED TO PARTICIPATING CREDITOR.--Any department or
agency of the United States which administers a credit program in which
it extends, insures, or guarantees consumer
credit and in which it
provides instruments to a creditor which contain any disclosures by
this title shall, prior to the issuance or continued use of such
instruments, consult with the Bureau to assure that such instruments
comply with this title. (b) No civil or criminal penalty provided under this title for any
violation thereof may be imposed upon the United States or any
department or agency thereof, or upon any State or political
subdivision thereof, or any agency of any State or political
subdivision. (c) A creditor participating in a credit program administered,
insured, or guaranteed by any department or agency of the United States
shall not be held liable for a civil or criminal penalty under this
title in any case in which the violation results from the use of an
instrument required by any such department or agency. (d) A creditor participating in a credit program administered,
shall not be held liable for a civil or criminal penalty under the laws
of any State (other than laws determined under section 111 to be
inconsistent with this title) for any technical or procedural failure,
such as a failure to use a specific form, to make information available
at a specific place on an instrument, or to use a specific typeface, as
required by State law, which is caused by the use of an instrument
required to be used by such department or agency. [Codified to 15 U.S.C. 1612] [Source: Section 113 of title I of the Act of May 29,
1968 (Pub. L. No. 90--321; 82 Stat. 151), effective May 29, 1968; as
amended by section 622 of title VI of the Act of March 31, 1980 (Pub.
L. No. 96--221; 94 Stat. 184), effective October 1, 1982; section
1100A(2) of title XI of the Act of July 21, 2010 (Pub. L. No.
111--203; 124 Stat. 2107), effective July 21, 2011]
§ 114. Annual reports to Congress by Bureau Each year the Bureau shall make a report to the Congress concerning
the administration of its functions under this title, including such
recommendations as the Bureau deems necessary or appropriate. In
addition, each report of the Bureau shall include its assessment of the
extent to which compliance with the requirements imposed under this
title is being achieved. [Codified to 15 U.S.C. 1613] [Source: Section 114 of title I of the Act of May 29,
amended by section 610 of title VI of the Act of March 31, 1980 (Pub.
L. No. 96--221; 94 Stat. 174), effective October 1, 1982; section
209(b) of title II of the Act of December 21, 1982 (P.L. No. 97--375;
96 Stat. 1825), effective December 21, 1982; section 1100A(2) of title
XI of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 2107),
§ 115. [Repealed] [Source: Section 115 of title I of the Act of May 29, 1968 (Pub.
L. No. 90--321), as added by section 413(a) of title IV of the Act of
October 28, 1974 (Pub. L. No. 93--495; 88 Stat. 1520), effective
October 28, 1974; as repealed by section 616 of title VI of the Act of
March 31, 1980 (Pub. L. No. 96--221; 94 Stat. 182), effective October
1, 1982]
SEC. 502. BOARD REVIEW OF CONSUMER CREDIT PLANS AND REGULATIONS. (a) REQUIRED REVIEW.--Not later than 2 years after the
effective date of this Act and every 2 years thereafter, except as
provided in subsection (c)(2), the Board shall conduct a review, within
the limits of its existing resources available for reporting purposes,
of the consumer credit card market, including-- (1) the terms of credit card agreements and the practices of
credit card issuers; (2) the effectiveness of disclosure of terms, fees, and other
expenses of credit card plans; (3) the adequacy of protections against unfair or deceptive acts
or practices relating to credit card plans; and
(4) whether or not, and to what extent, the implementation of
this Act and the amendments made by this Act has affected-- (A) cost and availability of credit, particularly with respect to
non-prime borrowers; (B) the safety and soundness of credit card issuers; (C) the use of risk-based pricing; or (D) credit card product innovation. (b) SOLICITATION OF PUBLIC COMMENT.--In connection with
conducting the review required by subsection (a), the Board shall
solicit comment from consumers, credit card issuers, and other
interested parties, such as through hearings or written comments. (c) REGULATIONS.-- (1) NOTICE.--Following the review required by subsection
(a), the Board shall publish a notice in the Federal Register that-- (A) summarizes the review, the comments received from the public
solicitation, and other evidence gathered by the Board, such as through
consumer testing or other research; and (B) either-- (i) proposes new or revised regulations or interpretations to
update or revise disclosures and protections for consumer credit cards,
as appropriate; or (ii) states the reason for the determination of the Board that
new or revised regulations are not necessary. (2) REVISION OF REVIEW PERIOD FOLLOWING MATERIAL REVISION OF
regulations, which thereafter shall be treated as the new date for the
biennial review required by subsection (a). (d) BOARD REPORT TO THE CONGRESS.--The Board shall report
to Congress not less frequently than every 2 years, except as provided
in subsection (c)(2), on the status of its most recent review, its
efforts to address any issues identified from the review, and any
recommendations for legislation. (e) ADDITIONAL REPORTING.--The Federal banking agencies
(as that term is defined in section 3 of the Federal Deposit
Insurance Act) and the Federal Trade Commission shall provide annually
to the Board, and the Board shall include in its annual report to
Congress under section 10 of the Federal Reserve Act, information about
the supervisory and enforcement activities of the agencies with respect
to compliance by credit card issuers with applicable Federal consumer
protection statutes and regulations, including-- (1) this Act, the amendments made by this Act, and regulations
prescribed under this Act and such amendments; and (2) section 5 of the Federal Trade Commission Act, and
including part 227 of title 12 of the Code of Federal Regulations, as
prescribed by the Board (referred to as "Regulation AA''). [Codified to 15 U.S.C. 1616] [Source: Section 1616 added by section 502 of the title V of the
Act of May 22, 2009 (Pub. L. No. 111--24; 123 Stat. 1755), effective
May 22, 2009]
1So in original. No subsection (e) has been enacted. Go back to Text