15 U.S.C. § 1616 — Board review of consumer credit plans

Page 1475 TITLE 15—COMMERCE AND TRADE § 1616 § 1616. 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 exist- ing 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 un- fair 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 amend- ments made by this Act has affected— (A) cost and availability of credit, particu- larly 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 re- quired 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 re- search; and (B) either— (i) proposes new or revised regulations or interpretations to update or revise disclo- sures and protections for consumer credit cards, as appropriate; or (ii) states the reason for the determina- tion of the Board that new or revised regu- lations are not necessary. (2) Revision of review period following mate- rial revision of regulations In the event that the Board materially re- vises regulations on consumer credit card plans, a review need not be conducted until 2 years after the effective date of the revised regulations, which thereafter shall be treated as the new date for the biennial review re- quired by subsection (a). (d) Board report to the Congress The Board shall report to Congress not less frequently than every 2 years, except as pro- vided in subsection (c)(2), on the status of its most recent review, its efforts to address any issues identified from the review, and any rec- ommendations for legislation. (e) Additional reporting The Federal banking agencies (as that term is defined in section 1813 of title 12) and the Fed- eral Trade Commission shall provide annually to the Board, and the Board shall include in its an- nual report to Congress under section 247 of title 12, information about the supervisory and en- forcement activities of the agencies with respect to compliance by credit card issuers with appli- cable 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 Commis- sion Act [15 U.S.C. 45], and regulations pre- scribed under the Federal Trade Commission Act [15 U.S.C. 41 et seq.], including part 227 of title 12 of the Code of Federal Regulations, as prescribed by the Board (referred to as ‘‘Regu- lation AA’’). (Pub. L. 111–24, title V, § 502, May 22, 2009, 123 Stat. 1755.) Editorial Notes REFERENCES IN TEXT The effective date of this Act, referred to in subsec. (a), is 9 months after May 22, 2009, except as otherwise specifically provided in Pub. L. 111–24, see section 3 of Pub. L. 111–24, set out as an Effective Date of 2009 Amendment note under section 1602 of this title. This Act, referred to in subsecs. (a)(4) and (e)(1), is Pub. L. 111–24, May 22, 2009, 123 Stat. 1734, known as the Credit Card Accountability Responsibility and Disclo- sure Act of 2009, and also as the Credit CARD Act of 2009, which enacted this section and sections 1651, 1665c to 1665e, 1666i–1, 1666i–2, and 1693l–1 of this title and sec- tion 1a–7b of Title 16, Conservation, amended sections 1602, 1632, 1637, 1640, 1650, 1666b, 1666c, 1666j, 1681b, 1681j, and 1693m to 1693r of this title, enacted provisions set out as notes under sections 1602, 1637, 1638, 1666b, 1681j, and 1693l–1 of this title and section 5311 of Title 31, Money and Finance, and amended provisions set out as notes under sections 1638 and 1693 of this title. For com- plete classification of this Act to the Code, see Short Title of 2009 Amendment note set out under section 1601 of this title and Tables. The Federal Trade Commission Act, referred to in subsec. (e)(2), is act Sept. 26, 1914, ch. 311, 38 Stat. 717, which is classified generally to subchapter I (§ 41 et seq.) of chapter 2 of this title. For complete classifica- tion of this Act to the Code, see section 58 of this title and Tables. CODIFICATION Section was enacted as part of the Credit Card Ac- countability Responsibility and Disclosure Act of 2009, also known as the Credit CARD Act of 2009, and not as part of the Consumer Credit Protection Act which com- prises this chapter. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 9 months after May 22, 2009, except as otherwise specifically provided, see section 3 of Pub. L. 111–24, set out as an Effective Date of 2009 Amend- ment note under section 1602 of this title. DEFINITION For definition of ‘‘Board’’, see section 2 of Pub. L. 111–24, set out as a Regulations note under section 1602 of this title. Page 1476 TITLE 15—COMMERCE AND TRADE § 1631 1 See References in Text note below. PART B—CREDIT TRANSACTIONS § 1631. Disclosure requirements (a) Duty of creditor or lessor respecting one or more than one obligor Subject to subsection (b), a creditor or lessor shall disclose to the person who is obligated on a consumer lease or a consumer credit trans- action the information required under this sub- chapter. In a transaction involving more than one obligor, a creditor or lessor, except in a transaction under section 1635 of this title, need not disclose to more than one of such obligors if the obligor given disclosure is a primary obligor. (b) Creditor or lessor required to make disclo- sure If a transaction involves one creditor as de- fined in section 1602(f) 1 of this title, or one les- sor as defined in section 1667(3) of this title, such creditor or lessor shall make the disclosures. If a transaction involves more than one creditor or lessor, only one creditor or lessor shall by re- quired to make the disclosures. The Bureau shall by regulation specify which creditor or les- sor shall make the disclosures. (c) Estimates as satisfying statutory require- ments; basis of disclosure for per diem inter- est The Bureau may provide by regulation that any portion of the information required to be disclosed by this subchapter may be given in the form of estimates where the provider of such in- formation is not in a position to know exact in- formation. In the case of any consumer credit transaction a portion of the interest on which is determined on a per diem basis and is to be col- lected upon the consummation of such trans- action, any disclosure with respect to such por- tion of interest shall be deemed to be accurate for purposes of this subchapter if the disclosure is based on information actually known to the creditor at the time that the disclosure docu- ments are being prepared for the consummation of the transaction. (d) Tolerances for numerical disclosures The Bureau shall determine whether toler- ances for numerical disclosures other than the annual percentage rate are necessary to facili- tate compliance with this subchapter, and if it determines that such tolerances are necessary to facilitate compliance, it shall by regulation permit disclosures within such tolerances. The Bureau shall exercise its authority to permit tolerances for numerical disclosures other than the annual percentage rate so that such toler- ances are narrow enough to prevent such toler- ances from resulting in misleading disclosures or disclosures that circumvent the purposes of this subchapter. (Pub. L. 90–321, title I, § 121, May 29, 1968, 82 Stat. 152; Pub. L. 93–495, title III, § 307(c), (d), title IV, § 409, Oct. 28, 1974, 88 Stat. 1516, 1519; Pub. L. 94–205, § 11, Jan. 2, 1976, 89 Stat. 1159; Pub. L. 96–221, title VI, § 611, Mar. 31, 1980, 94 Stat. 174; Pub. L. 104–29, § 3(b), Sept. 30, 1995, 109 Stat. 273; Pub. L. 111–203, title X, § 1100A(2), July 21, 2010, 124 Stat. 2107.) Editorial Notes REFERENCES IN TEXT Section 1602(f) of this title, referred to in subsec. (b), was redesignated section 1602(g) of this title by Pub. L. 111–203, title X, § 1100A(1)(A), July 21, 2010, 124 Stat. 2107. AMENDMENTS 2010—Subsecs. (b) to (d). Pub. L. 111–203 substituted ‘‘Bureau’’ for ‘‘Board’’ wherever appearing. 1995—Subsec. (c). Pub. L. 104–29 inserted at end ‘‘In the case of any consumer credit transaction a portion of the interest on which is determined on a per diem basis and is to be collected upon the consummation of such transaction, any disclosure with respect to such portion of interest shall be deemed to be accurate for purposes of this subchapter if the disclosure is based on information actually known to the creditor at the time that the disclosure documents are being prepared for the consummation of the transaction.’’ 1980—Subsec. (a). Pub. L. 96–221 substituted provi- sions respecting to which obligor duty of creditor or lessor, where one or more than one obligor is involved, is owed, for provisions setting forth clear and conspic- uous disclosure requirements for creditors to persons extended consumer credit. Subsec. (b). Pub. L. 96–221 substituted provisions re- lating to disclosure requirements of creditor or lessor, for provisions relating to statement of information where more than one obligor is involved. Subsecs. (c), (d). Pub. L. 96–221 added subsecs. (c) and (d). 1976—Subsec. (c). Pub. L. 94–205 struck out subsec. (c) which related to disclosure including a full statement of closing costs incurred and permitted estimates of such information where the lender was not in a posi- tion to know exact information. 1974—Subsec. (a). Pub. L. 93–495, § 307(c), inserted ref- erence to part D of this subchapter and struck out ‘‘and upon whom a finance charge is or may be imposed’’ after ‘‘extended’’. Subsec. (b). Pub. L. 93–495, § 307(d), inserted reference to part D of this subchapter. Subsec. (c). Pub. L. 93–495, § 409, added subsec (c). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the des- ignated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees. EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96–221 effective on expiration of two years and six months after Mar. 31, 1980, with all regulations, forms, and clauses required to be pre- scribed to be promulgated at least one year prior to such effective date, and allowing any creditor to com- ply with any amendments, in accordance with the regu- lations, forms, and clauses prescribed by the Board prior to such effective date, see section 625 of Pub. L. 96–221, set out as a note under section 1602 of this title. EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94–205 effective Jan. 2, 1976, see section 12 of Pub. L. 94–205, set out as a note under section 2602 of Title 12, Banks and Banking. EFFECTIVE DATE OF 1974 AMENDMENT For effective date of amendment by section 307(c), (d) of Pub. L. 93–495, see section 308 of Pub. L. 93–495, set out as an Effective Date note under section 1666 of this title. For effective date of amendment by section 409 of Pub. L. 93–495, see section 416 of Pub. L. 93–495, set out as an Effective Date note under section 1665a of this title.