Source: https://www.consumerfinance.gov/policy-compliance/rulemaking/regulations/1026/9/
Timestamp: 2019-10-24 04:48:07
Document Index: 658888203

Matched Legal Cases: ['§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026', '§ 1026']

(a) Furnishing statement of billing rights —
Official interpretation of 9(a) Furnishing Statement of Billing Rights Show Hide
See interpretation of 9(a) Furnishing Statement of Billing Rights in Supplement I
(1) Annual statement. The creditor shall mail or deliver the billing rights statement required by § 1026.6(a)(5) and (b)(5)(iii) at least once per calendar year, at intervals of not less than 6 months nor more than 18 months, either to all consumers or to each consumer entitled to receive a periodic statement under § 1026.5(b)(2) for any one billing cycle.
Official interpretation of 9(a)(1) Annual Statement Show Hide
See interpretation of 9(a)(1) Annual Statement in Supplement I
(2) Alternative summary statement. As an alternative to paragraph (a)(1) of this section, the creditor may mail or deliver, on or with each periodic statement, a statement substantially similar to Model Form G-4 or Model Form G-4(A) in appendix G to this part, as applicable. Creditors offering home-equity plans subject to the requirements of § 1026.40 may use either Model Form, at their option.
Official interpretation of 9(a)(2) Alternative Summary Statement Show Hide
See interpretation of 9(a)(2) Alternative Summary Statement in Supplement I
(b) Disclosures for supplemental credit access devices and additional features.
Official interpretation of 9(b) Disclosures for Supplemental Credit Access Devices and Additional Features Show Hide
See interpretation of 9(b) Disclosures for Supplemental Credit Access Devices and Additional Features in Supplement I
(1) If a creditor, within 30 days after mailing or delivering the account-opening disclosures under § 1026.6(a)(1) or (b)(3)(ii)(A), as applicable, adds a credit feature to the consumer's account or mails or delivers to the consumer a credit access device, including but not limited to checks that access a credit card account, for which the finance charge terms are the same as those previously disclosed, no additional disclosures are necessary. Except as provided in paragraph (b)(3) of this section, after 30 days, if the creditor adds a credit feature or furnishes a credit access device (other than as a renewal, resupply, or the original issuance of a credit card) on the same finance charge terms, the creditor shall disclose, before the consumer uses the feature or device for the first time, that it is for use in obtaining credit under the terms previously disclosed.
(2) Except as provided in paragraph (b)(3) of this section, whenever a credit feature is added or a credit access device is mailed or delivered to the consumer, and the finance charge terms for the feature or device differ from disclosures previously given, the disclosures required by § 1026.6(a)(1) or (b)(3)(ii)(A), as applicable, that are applicable to the added feature or device shall be given before the consumer uses the feature or device for the first time.
Official interpretation of Paragraph 9(b)(2) Show Hide
See interpretation of Paragraph 9(b)(2) in Supplement I
(3) Checks that access a credit card account.
Official interpretation of 9(b)(3) Checks That Access a Credit Card Account Show Hide
See interpretation of 9(b)(3) Checks That Access a Credit Card Account in Supplement I
(i) Disclosures. For open-end plans not subject to the requirements of § 1026.40, if checks that can be used to access a credit card account are provided more than 30 days after account-opening disclosures under § 1026.6(b) are mailed or delivered, or are provided within 30 days of the account-opening disclosures and the finance charge terms for the checks differ from the finance charge terms previously disclosed, the creditor shall disclose on the front of the page containing the checks the following terms in the form of a table with the headings, content, and form substantially similar to Sample G-19 in appendix G to this part:
Official interpretation of 9(b)(3)(i) Disclosures Show Hide
See interpretation of 9(b)(3)(i) Disclosures in Supplement I
(A) If a promotional rate, as that term is defined in § 1026.16(g)(2)(i) applies to the checks:
(C) Any transaction fees applicable to the checks disclosed under § 1026.6(b)(2)(iv); and
Official interpretation of Paragraph 9(b)(3)(i)(D) Show Hide
See interpretation of Paragraph 9(b)(3)(i)(D) in Supplement I
Official interpretation of 9(c)(1) Rules Affecting Home-Equity Plans Show Hide
See interpretation of 9(c)(1) Rules Affecting Home-Equity Plans in Supplement I
(i) Written notice required. For home-equity plans subject to the requirements of § 1026.40, whenever any term required to be disclosed under § 1026.6(a) is changed or the required minimum periodic payment is increased, the creditor shall mail or deliver written notice of the change to each consumer who may be affected. The notice shall be mailed or delivered at least 15 days prior to the effective date of the change. The 15-day timing requirement does not apply if the change has been agreed to by the consumer; the notice shall be given, however, before the effective date of the change.
Official interpretation of 9(c)(1)(i) Written Notice Required Show Hide
See interpretation of 9(c)(1)(i) Written Notice Required in Supplement I
(ii) Notice not required. For home-equity plans subject to the requirements of § 1026.40, a creditor is not required to provide notice under this section when the change involves a reduction of any component of a finance or other charge or when the change results from an agreement involving a court proceeding.
Official interpretation of 9(c)(1)(ii) Notice not Required Show Hide
See interpretation of 9(c)(1)(ii) Notice not Required in Supplement I
(iii) Notice to restrict credit. For home-equity plans subject to the requirements of § 1026.40, if the creditor prohibits additional extensions of credit or reduces the credit limit pursuant to § 1026.40(f)(3)(i) or (f)(3)(vi), the creditor shall mail or deliver written notice of the action to each consumer who will be affected. The notice must be provided not later than three business days after the action is taken and shall contain specific reasons for the action. If the creditor requires the consumer to request reinstatement of credit privileges, the notice also shall state that fact.
Official interpretation of 9(c)(1)(iii) Notice to Restrict Credit Show Hide
See interpretation of 9(c)(1)(iii) Notice to Restrict Credit in Supplement I
(2) Rules affecting open-end (not home-secured) plans —
Official interpretation of 9(c)(2) Rules Affecting Open-End (Not Home-Secured) Plans Show Hide
See interpretation of 9(c)(2) Rules Affecting Open-End (Not Home-Secured) Plans in Supplement I
(i) Changes where written advance notice is required —
(A) General. For plans other than home-equity plans subject to the requirements of § 1026.40, except as provided in paragraphs (c)(2)(i)(B), (c)(2)(iii) and (c)(2)(v) of this section, when a significant change in account terms as described in paragraph (c)(2)(ii) of this section is made, a creditor must provide a written notice of the change at least 45 days prior to the effective date of the change to each consumer who may be affected. The 45-day timing requirement does not apply if the consumer has agreed to a particular change as described in paragraph (c)(2)(i)(B) of this section; for such changes, notice must be given in accordance with the timing requirements of paragraph (c)(2)(i)(B) of this section. Increases in the rate applicable to a consumer's account due to delinquency, default or as a penalty described in paragraph (g) of this section that are not due to a change in the contractual terms of the consumer's account must be disclosed pursuant to paragraph (g) of this section instead of paragraph (c)(2) of this section.
(ii) Significant changes in account terms. For purposes of this section, a “significant change in account terms” means a change to a term required to be disclosed under § 1026.6(b)(1) and (b)(2), an increase in the required minimum periodic payment, a change to a term required to be disclosed under § 1026.6(b)(4), or the acquisition of a security interest.
(iii) Charges not covered by § 1026.6(b)(1) and (b)(2). Except as provided in paragraph (c)(2)(vi) of this section, if a creditor increases any component of a charge, or introduces a new charge, required to be disclosed under § 1026.6(b)(3) that is not a significant change in account terms as described in paragraph (c)(2)(ii) of this section, a creditor must either, at its option:
Official interpretation of 9(c)(2)(iii) Charges not Covered by § 1026.6(b)(1) and (b)(2) Show Hide
See interpretation of 9(c)(2)(iii) Charges not Covered by § 1026.6(b)(1) and (b)(2) in Supplement I
(iv) Disclosure requirements —
Official interpretation of 9(c)(2)(iv) Disclosure Requirements Show Hide
See interpretation of 9(c)(2)(iv) Disclosure Requirements in Supplement I
(A) Significant changes in account terms. If a creditor makes a significant change in account terms as described in paragraph (c)(2)(ii) of this section, the notice provided pursuant to paragraph (c)(2)(i) of this section must provide the following information:
(1) A summary of the changes made to terms required by § 1026.6(b)(1) and (b)(2) or § 1026.6(b)(4), a description of any increase in the required minimum periodic payment, and a description of any security interest being acquired by the creditor;
(3) For accounts other than credit card accounts under an open-end (not home-secured) consumer credit plan subject to § 1026.9(c)(2)(iv)(B), a statement indicating the consumer has the right to opt out of these changes, if applicable, and a reference to additional information describing the opt-out right provided in the notice, if applicable;
(B) Right to reject for credit card accounts under an open-end (not home-secured) consumer credit plan. In addition to the disclosures in paragraph (c)(2)(iv)(A) of this section, if a card issuer makes a significant change in account terms on a credit card account under an open-end (not home-secured) consumer credit plan, the creditor must generally provide the following information on the notice provided pursuant to paragraph (c)(2)(i) of this section. This information is not required to be provided in the case of an increase in the required minimum periodic payment, an increase in a fee as a result of a reevaluation of a determination made under § 1026.52(b)(1)(i) or an adjustment to the safe harbors in § 1026.52(b)(1)(ii) to reflect changes in the Consumer Price Index, a change in an annual percentage rate applicable to a consumer's account, an increase in a fee previously reduced consistent with 50 U.S.C. app. 527 or a similar Federal or state statute or regulation if the amount of the increased fee does not exceed the amount of that fee prior to the reduction, or when the change results from the creditor not receiving the consumer's required minimum periodic payment within 60 days after the due date for that payment:
(1) If the significant change required to be disclosed pursuant to paragraph (c)(2)(i) of this section is an increase in an annual percentage rate or a fee or charge required to be disclosed under § 1026.6(b)(2)(ii), (b)(2)(iii), or (b)(2)(xii) based on the consumer's failure to make a minimum periodic payment within 60 days from the due date for that payment, the notice provided pursuant to paragraph (c)(2)(i) of this section must state that the increase will cease to apply to transactions that occurred prior to or within 14 days of provision of the notice, if the creditor receives six consecutive required minimum periodic payments on or before the payment due date, beginning with the first payment due following the effective date of the increase.
(2) If the significant change required to be disclosed pursuant to paragraph (c)(2)(i) of this section is an increase in a fee or charge required to be disclosed under § 1026.6(b)(2)(ii), (b)(2)(iii), or (b)(2)(xii) based on the consumer's failure to make a minimum periodic payment within 60 days from the due date for that payment, the notice provided pursuant to paragraph (c)(2)(i) of this section must also state the reason for the increase.
(D) Format requirements - (1) Tabular format. The summary of changes described in paragraph (c)(2)(iv)(A)(1) of this section must be in a tabular format (except for a summary of any increase in the required minimum periodic payment, a summary of a term required to be disclosed under § 1026.6(b)(4) that is not required to be disclosed under § 1026.6(b)
(1) and (b)(2), or a description of any security interest being acquired by the creditor), with headings and format substantially similar to any of the account-opening tables found in G-17 in appendix G to this part. The table must disclose the changed term and information relevant to the change, if that relevant information is required by § 1026.6(b)(1) and (b)(2). The new terms shall be described in the same level of detail as required when disclosing the terms under § 1026.6(b)(2).
(v) Notice not required. For open-end plans (other than home equity plans subject to the requirements of § 1026.40) a creditor is not required to provide notice under this section:
Official interpretation of 9(c)(2)(v) Notice not Required Show Hide
See interpretation of 9(c)(2)(v) Notice not Required in Supplement I
(D) When the change is an increase in an annual percentage rate, a fee or charge required to be disclosed under § 1026.6(b)(2)(ii), (b)(2)(iii), (b)(2)(viii), (b)(2)(ix), (b)(2)(ix) or (b)(2)(xii), or the required minimum periodic payment due to the completion of a workout or temporary hardship arrangement by the consumer or the consumer's failure to comply with the terms of such an arrangement, provided that:
(vi) Reduction of the credit limit. For open-end plans that are not subject to the requirements of § 1026.40, if a creditor decreases the credit limit on an account, advance notice of the decrease must be provided before an over-the-limit fee or a penalty rate can be imposed solely as a result of the consumer exceeding the newly decreased credit limit. Notice shall be provided in writing or orally at least 45 days prior to imposing the over-the-limit fee or penalty rate and shall state that the credit limit on the account has been or will be decreased.
Official interpretation of 9(d) Finance Charge Imposed at Time of Transaction Show Hide
See interpretation of 9(d) Finance Charge Imposed at Time of Transaction in Supplement I
(1) Any person, other than the card issuer, who imposes a finance charge at the time of honoring a consumer's credit card, shall disclose the amount of that finance charge prior to its imposition.
(2) The card issuer, other than the person honoring the consumer's credit card, shall have no responsibility for the disclosure required by paragraph (d)(1) of this section, and shall not consider any such charge for the purposes of §§ 1026.60, 1026.6 and 1026.7.
(e) Disclosures upon renewal of credit or charge card —
Official interpretation of 9(e) Disclosures Upon Renewal of Credit or Charge Card Show Hide
See interpretation of 9(e) Disclosures Upon Renewal of Credit or Charge Card in Supplement I
(1) Notice prior to renewal. A card issuer that imposes any annual or other periodic fee to renew a credit or charge card account of the type subject to § 1026.60, including any fee based on account activity or inactivity or any card issuer that has changed or amended any term of a cardholder's account required to be disclosed under § 1026.6(b)(1) and (b)(2) that has not previously been disclosed to the consumer, shall mail or deliver written notice of the renewal to the cardholder. If the card issuer imposes any annual or other periodic fee for renewal, the notice shall be provided at least 30 days or one billing cycle, whichever is less, before the mailing or the delivery of the periodic statement on which any renewal fee is initially charged to the account. If the card issuer has changed or amended any term required to be disclosed under § 1026.6(b)(1) and (b)(2) and such changed or amended term has not previously been disclosed to the consumer, the notice shall be provided at least 30 days prior to the scheduled renewal date of the consumer's credit or charge card. The notice shall contain the following information:
(i) The disclosures contained in § 1026.60(b)(1) through (b)(7) that would apply if the account were renewed; and
Official interpretation of 9(e)(2) Notification on Periodic Statements Show Hide
See interpretation of 9(e)(2) Notification on Periodic Statements in Supplement I
(f) Change in credit card account insurance provider —
Official interpretation of 9(f) Change in Credit Card Account Insurance Provider Show Hide
See interpretation of 9(f) Change in Credit Card Account Insurance Provider in Supplement I
(1) Notice prior to change. If a credit card issuer plans to change the provider of insurance for repayment of all or part of the outstanding balance of an open-end credit card account of the type subject to § 1026.60, the card issuer shall mail or deliver to the cardholder written notice of the change not less than 30 days before the change in provider occurs. The notice shall also include the following items, to the extent applicable:
Official interpretation of 9(f)(3) Substantial Decrease in Coverage Show Hide
See interpretation of 9(f)(3) Substantial Decrease in Coverage in Supplement I
(g) Increase in rates due to delinquency or default or as a penalty —
Official interpretation of 9(g) Increase in Rates Due to Delinquency or Default or as a Penalty Show Hide
See interpretation of 9(g) Increase in Rates Due to Delinquency or Default or as a Penalty in Supplement I
(1) Increases subject to this section. For plans other than home-equity plans subject to the requirements of § 1026.40, except as provided in paragraph (g)(4) of this section, a creditor must provide a written notice to each consumer who may be affected when:
(i) Disclosure requirements for rate increases** —
(A) General. If a creditor is increasing the rate due to delinquency or default or as a penalty, the creditor must provide the following information on the notice sent pursuant to paragraph (g)(1) of this section:
(B) Rate increases resulting from failure to make minimum periodic payment within 60 days from due date. For a credit card account under an open-end (not home-secured) consumer credit plan, if the rate increase required to be disclosed pursuant to paragraph (g)(1) of this section is an increase pursuant to § 1026.55(b)(4) based on the consumer's failure to make a minimum periodic payment within 60 days from the due date for that payment, the notice provided pursuant to paragraph (g)(1) of this section must also state that the increase will cease to apply to transactions that occurred prior to or within 14 days of provision of the notice, if the creditor receives six consecutive required minimum periodic payments on or before the payment due date, beginning with the first payment due following the effective date of the increase.
(ii) Format requirements.
(A) If a notice required by paragraph (g)(1) of this section is included on or with a periodic statement, the information described in paragraph (g)(3)(i) of this section must be in the form of a table and provided on the front of any page of the periodic statement, above the notice described in paragraph (c)(2)(iv) of this section if that notice is provided on the same statement.
Official interpretation of 9(g)(4) Exception for Decrease in Credit Limit Show Hide
See interpretation of 9(g)(4) Exception for Decrease in Credit Limit in Supplement I
(A) If a notice provided pursuant to paragraph (g)(4)(i) of this section is included on or with a periodic statement, the information described in paragraph (g)(4)(i) of this section must be in the form of a table and provided on the front of any page of the periodic statement; or
(h) Consumer rejection of certain significant changes in terms —
Official interpretation of 9(h) Consumer Rejection of Certain Significant Changes in Terms Show Hide
See interpretation of 9(h) Consumer Rejection of Certain Significant Changes in Terms in Supplement I
(1) Right to reject. If paragraph (c)(2)(iv)(B) of this section requires disclosure of the consumer's right to reject a significant change to an account term, the consumer may reject that change by notifying the creditor of the rejection before the effective date of the change.
Official interpretation of 9(h)(1) Right To Reject Show Hide
See interpretation of 9(h)(1) Right To Reject in Supplement I
Official interpretation of Paragraph 9(h)(2)(ii) Show Hide
See interpretation of Paragraph 9(h)(2)(ii) in Supplement I
(iii) Require repayment of the balance on the account using a method that is less beneficial to the consumer than one of the methods listed in § 1026.55(c)(2).
Official interpretation of Paragraph 9(h)(2)(iii) Show Hide
See interpretation of Paragraph 9(h)(2)(iii) in Supplement I
Official interpretation of 9(h)(3) Exception Show Hide
See interpretation of 9(h)(3) Exception in Supplement I
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