Monday, May 19, 2008

Truth in Lending - credit cards - proposed rule

SUMMARY: On June 14, 2007, the Board published proposed amendments to Regulation Z, which implements the Truth in Lending Act (TILA), and to the staff commentary to the regulation, following a comprehensive review of TILA’s rules for open-end (revolving) credit that is not home-secured.

The proposed revisions addressed disclosures provided with credit card applications and solicitations, at account-opening, on periodic statements, when terms are changed on an account, and in advertisements.

The Board is seeking comment on a limited number of additional revisions to the regulation and commentary. New proposed amendments address creditors’ responsibilities to establish reasonable instructions for receiving timely payments and when a due date falls on a weekend or holiday.

Creditors’ responsibilities when investigating a claim of unauthorized transactions or an allegation of a billing error are also addressed.

Advertisements for deferred interest plans would be required to provide additional information about how interest could be imposed.

Comments submitted to the Board in response to the June 2007 proposed revisions remain under consideration by the Board and need not be submitted a second time.

DATES: Comments must be received on or before July 18, 2008.