15 U.S.C. § 1667f — Regulations

Page 1549 TITLE 15—COMMERCE AND TRADE § 1667f 1 So in original. Probably should be ‘‘this’’. Editorial Notes AMENDMENTS 2010—Pub. L. 111–203, § 1100A(2), (10), substituted ‘‘Bu- reau’’ for ‘‘Board’’, ‘‘the Bureau’’ for ‘‘the Board’’, and ‘‘The Bureau’’ for ‘‘The Board’’ wherever appearing. 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. § 1667f. Regulations (a) Regulations authorized (1) In general The Bureau shall prescribe regulations to update and clarify the requirements and defi- nitions applicable to lease disclosures and con- tracts, and any other issues specifically re- lated to consumer leasing, to the extent that the Bureau determines such action to be nec- essary— (A) to carry out this part; (B) to prevent any circumvention of this part; or (C) to facilitate compliance with the re- quirements of the 1 part. (2) Classifications, adjustments Any regulations prescribed under paragraph (1) may contain classifications and differentia- tions, and may provide for adjustments and exceptions for any class of transactions, as the Bureau considers appropriate. (b) Model disclosure (1) Publication The Bureau shall establish and publish model disclosure forms to facilitate compli- ance with the disclosure requirements of this part and to aid the consumer in understanding the transaction to which the subject disclo- sure form relates. (2) Use of automated equipment In establishing model forms under this sub- section, the Bureau shall consider the use by lessors of data processing or similar auto- mated equipment. (3) Use optional A lessor may utilize a model disclosure form established by the Bureau under this sub- section for purposes of compliance with this part, at the discretion of the lessor. (4) Effect of use Any lessor who properly uses the material aspects of any model disclosure form estab- lished by the Bureau under this subsection shall be deemed to be in compliance with the disclosure requirements to which the form re- lates. (Pub. L. 90–321, title I, § 187, as added Pub. L. 104–208, div. A, title II, § 2605(b)(1), Sept. 30, 1996, 110 Stat. 3009–471; amended Pub. L. 111–203, title X, § 1100A(2), (10), July 21, 2010, 124 Stat. 2107, 2109.) Editorial Notes AMENDMENTS 2010—Pub. L. 111–203, § 1100A(2), (10), substituted ‘‘Bu- reau’’ for ‘‘Board’’, ‘‘the Bureau’’ for ‘‘the Board’’, and ‘‘The Bureau’’ for ‘‘The Board ’’ wherever appearing. 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 Section 2605(b)(2) of div. A of Pub. L. 104–208 provided that: ‘‘(A) IN GENERAL.—Any regulation of the Board, or any amendment or interpretation of any regulation of the Board issued pursuant to section 187 of the Truth in Lending Act [15 U.S.C. 1667f] (as added by paragraph (1) of this subsection), shall become effective on the first October 1 that follows the date of promulgation of that regulation, amendment, or interpretation by not less than 6 months. ‘‘(B) LONGER PERIOD.—The Board may, at the discre- tion of the Board, extend the time period referred to in subparagraph (A) in accordance with subparagraph (C), to permit lessors to adjust their disclosure forms to ac- commodate the requirements of section 127 [187] of the Truth in Lending Act (as added by paragraph (1) of this subsection). ‘‘(C) SHORTER PERIOD.—The Board may shorten the time period referred to in subparagraph (A), if the Board makes a specific finding that such action is nec- essary to comply with the findings of a court or to pre- vent an unfair or deceptive practice. ‘‘(D) COMPLIANCE BEFORE EFFECTIVE DATE.—Any lessor may comply with any means of disclosure provided for in section 127 [187] of the Truth in Lending Act (as added by paragraph (1) of this subsection) before the ef- fective date of such requirement. ‘‘(E) DEFINITIONS.—For purposes of this subsection, the term ‘lessor’ has the same meaning as in section 181 of the Truth in Lending Act [15 U.S.C. 1667].’’ CONGRESSIONAL FINDINGS AND DECLARATION OF PURPOSES Section 2605(a) of div. A of Pub. L. 104–208 provided that: ‘‘(1) FINDINGS.—The Congress finds that— ‘‘(A) competition among the various financial insti- tutions and other firms engaged in the business of consumer leasing is greatest when there is informed use of leasing; ‘‘(B) the informed use of leasing results from an awareness of the cost of leasing by consumers; and ‘‘(C) there has been a continued trend toward leas- ing automobiles and other durable goods for con- sumer use as an alternative to installment credit sales and that leasing product advances have oc- curred such that lessors have been unable to provide consistent industry-wide disclosures to fully account for the competitive progress that has occurred. ‘‘(2) PURPOSES.—The purposes of this section are— ‘‘(A) to assure a simple, meaningful disclosure of leasing terms so that the consumer will be able to compare more readily the various leasing terms available to the consumer and avoid the uninformed use of leasing, and to protect the consumer against inaccurate and unfair leasing practices; ‘‘(B) to provide for adequate cost disclosures that reflect the marketplace without impairing competi- tion and the development of new leasing products; and ‘‘(C) to provide the Board with the regulatory au- thority to assure a simplified, meaningful definition and disclosure of the terms of certain leases of per- Page 1550 TITLE 15—COMMERCE AND TRADE § 1671 sonal property for personal, family, or household pur- poses so as to— ‘‘(i) enable the lessee to compare more readily the various lease terms available to the lessee; ‘‘(ii) enable comparison of lease terms with credit terms, as appropriate; and ‘‘(iii) assure meaningful and accurate disclosures of lease terms in advertisements.’’ SUBCHAPTER II—RESTRICTIONS ON GARNISHMENT § 1671. Congressional findings and declaration of purpose (a) Disadvantages of garnishment The Congress finds: (1) The unrestricted garnishment of com- pensation due for personal services encourages the making of predatory extensions of credit. Such extensions of credit divert money into excessive credit payments and thereby hinder the production and flow of goods in interstate commerce. (2) The application of garnishment as a creditors’ remedy frequently results in loss of employment by the debtor, and the resulting disruption of employment, production, and consumption constitutes a substantial burden on interstate commerce. (3) The great disparities among the laws of the several States relating to garnishment have, in effect, destroyed the uniformity of the bankruptcy laws and frustrated the pur- poses thereof in many areas of the country. (b) Necessity for regulation On the basis of the findings stated in sub- section (a) of this section, the Congress deter- mines that the provisions of this subchapter are necessary and proper for the purpose of carrying into execution the powers of the Congress to regulate commerce and to establish uniform bankruptcy laws. (Pub. L. 90–321, title III, § 301, May 29, 1968, 82 Stat. 163.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 90–321, title V, § 504(c), May 29, 1968, 82 Stat. 167, provided that: ‘‘Title III [enacting this section and sections 1672 to 1677 of this title] takes effect on July 1, 1970.’’ § 1672. Definitions For the purposes of this subchapter: (a) The term ‘‘earnings’’ means compensation paid or payable for personal services, whether denominated as wages, salary, commission, bonus, or otherwise, and includes periodic pay- ments pursuant to a pension or retirement pro- gram. (b) The term ‘‘disposable earnings’’ means that part of the earnings of any individual re- maining after the deduction from those earnings of any amounts required by law to be withheld. (c) The term ‘‘garnishment’’ means any legal or equitable procedure through which the earn- ings of any individual are required to be with- held for payment of any debt. (Pub. L. 90–321, title III, § 302, May 29, 1968, 82 Stat. 163.) § 1673. Restriction on garnishment (a) Maximum allowable garnishment Except as provided in subsection (b) and in section 1675 of this title, the maximum part of the aggregate disposable earnings of an indi- vidual for any workweek which is subjected to garnishment may not exceed (1) 25 per centum of his disposable earnings for that week, or (2) the amount by which his disposable earn- ings for that week exceed thirty times the Federal minimum hourly wage prescribed by section 206(a)(1) of title 29 in effect at the time the earnings are payable, whichever is less. In the case of earnings for any pay period other than a week, the Secretary of Labor shall by regulation prescribe a multiple of the Federal minimum hourly wage equivalent in effect to that set forth in paragraph (2). (b) Exceptions (1) The restrictions of subsection (a) do not apply in the case of (A) any order for the support of any person issued by a court of competent jurisdiction or in accordance with an administrative proce- dure, which is established by State law, which affords substantial due process, and which is subject to judicial review. (B) any order of any court of the United States having jurisdiction over cases under chapter 13 of title 11. (C) any debt due for any State or Federal tax. (2) The maximum part of the aggregate dispos- able earnings of an individual for any workweek which is subject to garnishment to enforce any order for the support of any person shall not ex- ceed— (A) where such individual is supporting his spouse or dependent child (other than a spouse or child with respect to whose support such order is used), 50 per centum of such individ- ual’s disposable earnings for that week; and (B) where such individual is not supporting such a spouse or dependent child described in clause (A), 60 per centum of such individual’s disposable earnings for that week; except that, with respect to the disposable earn- ings of any individual for any workweek, the 50 per centum specified in clause (A) shall be deemed to be 55 per centum and the 60 per cen- tum specified in clause (B) shall be deemed to be 65 per centum, if and to the extent that such earnings are subject to garnishment to enforce a support order with respect to a period which is prior to the twelve-week period which ends with the beginning of such workweek. (c) Execution or enforcement of garnishment order or process prohibited No court of the United States or any State, and no State (or officer or agency thereof), may make, execute, or enforce any order or process in violation of this section. (Pub. L. 90–321, title III, § 303, May 29, 1968, 82 Stat. 163; Pub. L. 95–30, title V, § 501(e)(1)–(3), May 23, 1977, 91 Stat. 161, 162; Pub. L. 95–598, title III, § 312(a), Nov. 6, 1978, 92 Stat. 2676.)