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15 U.S.C. § 1606 — Determination of annual percentage rate
Federal law — U.S. Code and appendices · legal_authorities
**(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).11 So in original.
(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 be regulation require.
**(c) Allowable tolerances for
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Stable record: federal_law:legal_authorities:record_usc_21a8da5a9567791d0e2756b0
Source file: Laws/federal/codes/united-states-code/title-15/section-1606-determination-of-annual-percentage-rate--e97fcbdb02.md
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Source location: Title 15, Chapter 41, § 1606; chapter-041-consumer-credit-protection.md
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**(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).11 So in original.
(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 be 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 subchapter 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.
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** The definitions and rules of construction set forth in this section are applicable for the purposes of this subchapter.
**(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 part D of this subchapter and sections 1637(a)(5), 1637(a)(6), 1637(a)(7), 1637(b)(1), 1637(b)(2), 1637(b)(3), 1637(b)(8), and 1637(b)(10) 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
Source: Supplied U.S. Code snapshot — release unconfirmed · 15 U.S.C. § 1602
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Definitions.—** For purposes of this section—
(1) the term “agency” means agency as defined in section 552(e) 11 See References in Text note below. of this title;
(2) the term “individual” means a citizen of the United States or an alien lawfully admitted for permanent residence;
(3) the term “maintain” includes maintain, collect, use, or disseminate;
(4) the term “record” means any item, collection, or grouping of information about an individual that is maintained by an agency, including, but not limited to, his education, financial transactions, medical history, and criminal or employment history and that contains his name, or the identifying number, symbol, or other identifying particular assigned to the individual, such as a finger or voice print or a photograph;
(5) the term “system of records” means a group of any records under the control of any agency from which information is retrieved by the name of the individual or by some identifying number, symbol, or other identifying particular assigned to the individual;
(6) the term “statistical record” means a record in a system of records maintained for statistical research or reporting purposes only and not used in whole or in part in making any determination about an identifiable individual, except as provided by [section 8 of title 13](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title13-section8&num=0&edition=prelim);
(7) the term “routine use” means, with respect to the disclosure of a record, the use of such record for a purpose which is compatible with the purpose for which it was collected;
(8) the term “matching program”—
(A) means any computerized comparison of—
(i) two or more automated systems of records or a system of records with non-Federal records for the purpose
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Interest.—** A creditor who extends consumer credit to a covered member of the armed forces or a dependent of such a member shall not require the member or dependent to pay interest with respect to the extension of such credit, except as—
(1) agreed to under the terms of the credit agreement or promissory note;
(2) authorized by applicable State or Federal law; and
(3) not specifically prohibited by this section.
**(b) Annual Percentage Rate.—** A creditor described in subsection (a) may not impose an annual percentage rate of interest greater than 36 percent with respect to the consumer credit extended to a covered member or a dependent of a covered member.
**(c) Mandatory Loan Disclosures.—**
(1) **Information required.—** — With respect to any extension of consumer credit (including any consumer credit originated or extended through the internet) to a covered member or a dependent of a covered member, a creditor shall provide to the member or dependent the following information orally and in writing before the issuance of the credit:
(A) A statement of the annual percentage rate of interest applicable to the extension of credit.
(B) Any disclosures required under the Truth in Lending Act ([15 U.S.C. 1601](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section1601&num=0&edition=prelim) et seq.).
(C) A clear description of the payment obligations of the member or dependent, as applicable.
(2) **Terms.—** — Such disclosures shall be presented in accordance with terms prescribed by the regulations issued by the Board of Governors of the Federal Reserve System to implement the Truth in Lending Act ([15 U.S.C. 1601](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section1601&num=0&edition=prelim) et seq.).
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Federal law — U.S. Code and appendices · legal_authorities
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 subchapter or any regulation issued thereunder,
(2) uses any chart or table authorized by the Bureau under [section 1606 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section1606&num=0&edition=prelim) in such a manner as to consistently understate the annual percentage rate determined under [section 1606(a)(1)(A) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section1606/a/1/A&num=0&edition=prelim), or
(3) otherwise fails to comply with any requirement imposed under this subchapter,
shall be fined not more than $5,000 or imprisoned not more than one year, or both.
Source: Supplied U.S. Code snapshot — release unconfirmed · 15 U.S.C. § 1611
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Federal law — U.S. Code and appendices · legal_authorities
Page 1467
TITLE 15—COMMERCE AND TRADE
§ 1607
1 So in original.
priate regulation in order to effect any change included
in the report under paragraph (1), and shall publish the
regulation in the Federal Register before the end of the
1-year period beginning on the date of enactment of
this Act.’’
§ 1606. Determination of annual percentage rate
(a) ‘‘Annual percentage rate’’ defined
The annual percentage rate applicable to any
extension of consumer credit shall be deter-
mined, 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 meth-
od 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 accu-
mulated 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 re-
taining reasonable accuracy as compared
with the rate determined under subpara-
graph (A).1
(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 di-
vided 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 s
Source: Supplied 2024 U.S. Code historical extraction · 15 U.S.C. § 1606
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