In disclosing in the tabular format a grace period that applies to all types of purchases, the phrase How to Avoid Paying Interest on Purchases shall be used as the heading for the row describing the grace period. PDF Credit Card Account Management Examination Procedures Foreign cash advances. (i) Home-equity plans accessible by a credit or charge card that are subject to the requirements of 1026.40; (ii) Overdraft lines of credit tied to asset accounts accessed by check-guarantee cards or by debit cards; (iii) Lines of credit accessed by check-guarantee cards or by debit cards that can be used only at automated teller machines; (iv) Lines of credit accessed solely by account numbers except for a covered separate credit feature solely accessible by an account number that is a hybrid prepaid-credit card as defined in 1026.61; (v) Additions of a credit or charge card to an existing open-end plan; (vi) General purpose applications unless the application, or material accompanying it, indicates that it can be used to open a credit or charge card account; or. For example, if an issuer may increase an introductory rate because the account is more than 60 days late, the issuer should describe this circumstance directly beneath the table as make a late payment. In addition, if the circumstances in which an introductory rate could be revoked are already listed elsewhere in the table, the issuer is not required to repeat the circumstances again, but may refer to those circumstances in a clear and conspicuous manner. in Supplement I. 4. See interpretation of 60(d) Telephone Applications and Solicitations in Supplement I. (ii) For home-equity plans subject to 1026.40, the terms finance charge and annual percentage rate,* when required to be disclosed with a corresponding amount or percentage rate, shall be more conspicuous than any other required disclosure. 1. See 1026.5(b)(1)(iv)(A). If the rate that depends, at least in part, on a later determination of the consumer's creditworthiness is a penalty rate, as described in paragraph (b)(1)(iv) of this section, the card issuer at its option may disclose the highest rate that could apply, instead of disclosing the specific rates or the range of rates that could apply. The tabular format does not apply to oral disclosures given pursuant to 1026.60(d)(1). In general, a creditor may not collect any fee before account-opening disclosures are provided. 2. Multiple consumers. Disclosures shall reflect the terms of the legal obligation between the parties. If the issuer provides a grace period on some types of purchases but no grace period on others, the issuer may combine and revise the language in comments 60(b)(5)-1 and -2 as appropriate to describe to which types of purchases a grace period applies and to which types of purchases no grace period is offered. Alternatively, the card issuer may disclose the $15 fee on two separate rows, one row indicating that a $15 fee applies to purchase transactions, and a second row indicating that a $15 fee applies to ATM cash advances. 1026.32 Requirements for high-cost mortgages. See interpretation of 60(b)(5) Grace Period in Supplement I. If the issuer instead mailed paper disclosures to the consumer, this requirement would not be met. If the creditor does not receive any payment on or before September 24, 1026.5(b)(2)(ii)(B)(2)(ii) does not prohibit the creditor from treating the required minimum periodic payment as late. 12 CFR 1026.9 - Subsequent disclosure requirements. In using estimates, the creditor is not required to disclose the basis for the estimated figures, but may include such explanations as additional information. ii. See interpretation of 5(b) Time of Disclosures in Supplement I. For credit card accounts under an open-end (not home-secured) consumer credit plan, a card issuer must adopt reasonable procedures designed to ensure that: (1) Periodic statements are mailed or delivered at least 21 days prior to the payment due date disclosed on the statement pursuant to 1026.7(b)(11)(i)(A); and. Clear and conspicuous standard. IMPORTANT CREDIT CARD DISCLOSURES. No grace period. Need not be physically attached or affixed to the basic disclosure statement. However, in these circumstances, 1026.5(b)(2)(ii)(A)(2) requires the card issuer to have reasonable procedures designed to ensure that a payment is not treated as late for any purpose during the 21-day period following mailing or delivery of the statement. i. (v) Application fees. Applicability of 1026.5(b)(2)(ii)(B)(1). Receiving the address at least 20 days before the end of a cycle would be a reasonable amount of time to prepare the statement for that cycle. However, bold text shall not be used for: The amount of any periodic fee disclosed pursuant to paragraph (b)(2) of this section that is not an annualized amount; and other annual percentage rates or fee amounts disclosed in the table. The disclosure of the fee for a late payment includes only those fees that will be imposed for actual, unanticipated late payments. Making disclosures more conspicuous. iii. If a rate disclosed under paragraph (b)(1) of this section is a variable rate, the card issuer shall also disclose the fact that the rate may vary and how the rate is determined. 5. If an issuer substitutes the account-opening summary table described in 1026.6(b)(1) in lieu of the disclosures specified in 1026.60(d)(2)(ii), the disclosure specified in 1026.60(d)(2)(ii)(B) must appear in the table, if the issuer is required to do so pursuant to 1026.6(b)(2)(xiii). 4. Arvest Commercial Visa Credit Card Agreement: For existing cardholders, to request a copy of your Arvest Commercial Visa Credit Card Agreement, please call us at (855) 250-8508 or write to us at PO Box . A creditor is not required to determine the specific date on which a periodic statement is mailed or delivered to an individual consumer for purposes of 1026.5(b)(2)(ii). (B) In effect as of a specified date (which rate is then updated from time to time, but no less frequently than each calendar month). (See 1026.60(a)(5) and (e)(2) for exceptions; see 1026.60(a)(1) and accompanying commentary for the definition of solicitation; see also 1026.2(a)(15) and accompanying commentary for the definition of charge card and 1026.61(c) for restrictions on when credit or charge card accounts can be added to previously issued prepaid accounts.). In determining whether the 15 percent threshold test is met, the issuer must only consider fees for issuance or availability of credit, or a security deposit, that are required. The card issuer also assesses a fee of $1.50 for out-of-network ATM cash withdrawals and $1.00 for in-network ATM cash withdrawals. At the creditor's option, finance charge and annual percentage rate may also be disclosed more conspicuously than the other required disclosures even when the regulation does not so require. Inaccuracies in disclosures are not violations if attributable to events occurring after disclosures are made. PDF CARD Act Report - Consumer Financial Protection Bureau In making the required disclosure pursuant to 1026.60(b)(1)(iv)(B), issuers should describe this circumstance directly beneath the table as make a late payment., iv. This enables you to make meaningful comparisons among credit unions. 2. In calculating the available credit to disclose in the table, the issuer must consider all fees for the issuance or availability of credit described in 1026.60(b)(2), and any security deposit, that will be imposed and charged to the account when the account is opened, such as one-time issuance and set-up fees. The oral disclosure under paragraph (d)(1) of this section need not be given if the card issuer either: (A) Does not impose a fee described in paragraph (b)(2) of this section; or, (B) Imposes such a fee but provides the consumer with a right to reject the plan consistent with 1026.5(b)(1)(iv); and. Charges imposed by a third party, such as a seller of goods, shall not be disclosed in the table under this section; the third party would be responsible for disclosing the charge under 1026.9(d)(1). See interpretation of 60(e)(2) No Disclosure of Credit Information in Supplement I, (i) There are costs associated with the use of the card; and. A "firm offer of credit" as defined in section 603 (l) of the Fair Credit Reporting Act (15 U.S.C. If the card issuer discloses a range of fees instead of disclosing the amount of the specific fee applicable to the consumer's account, the range may be stated as the lowest authorized fee (zero, if there are one or more states where no fee applies) to the highest authorized fee. (See the commentary to 1026.17 on converting open-end credit to closed-end credit.). May be used only until the supply of outdated forms is exhausted. (See Sample G-10(C) in the disclosure labeled Loss of Introductory APR directly beneath the table for additional guidance on the level of detail in which to describe the circumstances in which an introductory rate could be revoked.) A consumer who has received the disclosures and uses the account, or makes a payment on the account after receiving a billing statement, is deemed not to have rejected the plan. A card issuer assesses a $15 fee for credit drawn from a covered separate credit feature using a hybrid prepaid-credit card to purchase goods or services at the point of sale when the consumer has insufficient or unavailable funds in the prepaid account as described in comment 60(b)(4)3.ii. Disclosing charges before the fee is imposed. A card issuer's response to a consumer's request for credit information may be provided orally or in writing, regardless of the manner in which the consumer's request is received by the issuer. (B) Introductory rates. See comments 7(b)(11)-1, 7(b)(11)-2, and 54(a)(1)-2. ii. 2. (e) Applications and solicitations made available to general public. Charges imposed by person other than card issuer. If none of the items in paragraph (b) of this section is provided on or with the application or solicitation, the card issuer may state in a prominent location on the application or solicitation the following: 1. Events causing inaccuracies. (2) Adjusted balance. A. In-person applications initiated by the consumer. (c) Basis of disclosures and use of estimates. Section 1026.5(b)(2)(ii)(B)(1) does not apply to charged-off accounts where full payment of the entire account balance is due immediately because such accounts do not provide a grace period. (A) In general. When you open a deposit account, what kinds of disclosure does a credit Otherwise, the issuer must revise the foreign transaction fee language shown in Samples G-10(B) and (C) to disclose clearly and conspicuously the amount of the foreign transaction fee that applies to purchases and the amount of the foreign transaction fee that applies to cash advances. Listed below are facts and circumstances that are relevant to whether a substitution or replacement results in the opening of a new account or a change in the terms of an existing account for purposes of the disclosure requirements in 1026.6(b) and 1026.9(c)(2). Section 1026.60 generally requires that credit disclosures be contained in application forms and solicitations initiated by a card issuer to open a credit or charge card account. Disclosures required by 1026.6 may be provided as soon as reasonably practicable after the first transaction if: 1. The maximum limit of $35 for the late payment fee must be highlighted in bold. See interpretation of 5(e) Effect of Subsequent Events in Supplement I, Explore guides to help you plan for big financial goals, Subpart B - Open-End Credit 1026.51026.16, Subpart C - Closed-End Credit 1026.171026.24, Subpart D - Miscellaneous 1026.251026.30, Subpart E - Special Rules for Certain Home Mortgage Transactions 1026.311026.45, Subpart F - Special Rules for Private Education Loans 1026.461026.48, Subpart G - Special Rules Applicable to Credit Card Accounts and Open-End Credit Offered to College Students 1026.511026.61, Supplement I to Part 1026 - Official Interpretations, Official interpretation of 5(a) Form of Disclosures, Official interpretation of Paragraph 5(a)(1)(ii)(A), Official interpretation of Paragraph 5(a)(1)(iii), Official interpretation of 5(a)(2) Terminology, Official interpretation of 5(b) Time of Disclosures, Official interpretation of 5(b)(1)(i) General Rule, Official interpretation of 5(b)(1)(ii) Charges Imposed as Part of an Open-End (Not Home-Secured) Plan, Official interpretation of 5(b)(1)(iii) Telephone Purchases, Official interpretation of 5(b)(1)(iv) Membership Fees, Official interpretation of 5(b)(2) Periodic Statements, Official interpretation of 5(b)(2)(i) Statement Required, Official interpretation of 5(b)(2)(ii) Timing Requirements, Official interpretation of 5(c) Basis of Disclosures and Use of Estimates, Official interpretation of 5(d) Multiple Creditors; Multiple Consumers, Official interpretation of 5(e) Effect of Subsequent Events. If no grace period is provided, that fact must be disclosed. PDF Visa Core Rules and Visa Product and Service Rules The legal obligation is determined by applicable state or other law. For home-equity plans subject to 1026.40, the terms annual percentage rate and finance charge need not be more conspicuous than figures (including, for example, numbers, percentages, and dollar signs). Overview. What is a Bad or Poor Credit Score? - nj.com See Samples G-10(B) and G-10(C) for guidance on how to disclose clearly and conspicuously the cash advance fee. Replacement as a result of theft or unauthorized use. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. However, other issuers may offer a grace period on all purchases under which interest may be charged on purchases even if the consumer pays the outstanding balance shown on a periodic statement in full by the due date shown on that statement each billing cycle. See interpretation of 60(a)(2) Form of Disclosures; Tabular Format in Supplement I. The reasonably available standard requires that the creditor, acting in good faith, exercise due diligence in obtaining information. Disclosures may be estimated when the exact information is unknown at the time disclosures are made. Disclosures for home-equity plans shall be made in accordance with the timing requirements of 1026.40(b). An issuer offering a deferred interest or similar plan, such as a promotional program that provides that a consumer will not be obligated to pay interest that accrues on a balance if that balance is paid in full prior to the expiration of a specified period of time, may not disclose a 0% rate as the rate applicable to deferred interest or similar transactions if there are any circumstances under which the consumer will be obligated for interest on such transactions for the deferred interest or similar period. Periodic fees. Similarly, assume an issuer will charge a cash advance fee of $5 or 3 percent of the cash advance transaction amount, whichever is greater, but the fee will not exceed $100. In describing the rate that will apply after revocation of the introductory rate, if the rate that will apply after revocation of the introductory rate is already disclosed in the table, the issuer is not required to repeat the rate, but may refer to that rate in a clear and conspicuous manner. For example, the following are covered: 1. 1026.11 Treatment of credit balances; account termination. In this instance, the card issuer must disclose separately a purchase transaction charge of $15 and a cash advance fee of $25. A membership fee for purposes of this paragraph has the same meaning as a fee for the issuance or availability of credit described in 1026.60(b)(2). ), 2. (i) Any annual or other periodic fee that may be imposed for the issuance or availability of a credit or charge card, including any fee based on account activity or inactivity; how frequently it will be imposed; and the annualized amount of the fee. If an issuer charges the same foreign transaction fee for purchases and cash advances in a foreign currency, or that take place outside the United States or with a foreign merchant, the issuer may disclose this foreign transaction fee as shown in Samples G-10(B) and G-10(C). For example, if the rate that will apply after revocation of an employee preferential rate is the standard rate that applies to that type of transaction (such as a purchase or balance transfer transaction), and the standard rates are labeled in the table as standard APRs, the issuer may refer to the standard APR when describing the rate that will apply after revocation of an employee preferential rate. The issuer may use the following language to describe that no grace period on any purchases is offered, as applicable: We will begin charging interest on purchases on the transaction date.. C. A card issuer assesses a $15 fee for credit drawn from a covered separate credit feature using a hybrid prepaid-credit card for providing cash at an ATM when the consumer has insufficient or unavailable funds in the prepaid account. Regulation Z also was amended to implement section 1204 of the Competitive Equality Banking Act of 1987, and in 1988, to include adjustable rate mortgage loan disclosure requirements. The card issuer also must disclose the rate that would otherwise apply to the account pursuant to paragraph (b)(1) of this section. In some cases, one rate may be based on another rate on the account. 1026.12 Special credit card provisions. 1. (ii) Certain disclosures for home-equity plans must precede other disclosures and must be given in accordance with the requirements of 1026.40 (a). Explanation of dividends, including frequency, minimum balance requirements, etc. 1026.57 Reporting and marketing rules for college student open-end credit. It may be provided to you . Rejecting the plan. Maximum limits on fees. (See Samples G-10(B) and G-10(C) (in the row labeled Penalty APR and When it Applies) for additional guidance on the level of detail which the issuer should use to describe how long the increased rate will remain in effect.) (4) Transaction charges. 2. A merchant must provide clear disclosure to the merchant's customers of the merchant's surcharging practices at the point of interaction which shall include the amount of the surcharge and the dollar amount of the surcharge on the transaction receipt provided by the merchant to its customers. The disclosures specified in 1026.60(e)(1)(ii) and (e)(1)(iii) may appear either in or outside the table containing the required credit disclosures. If there is more than one consumer, the disclosures may be made to any consumer who is primarily liable on the account. Section 1026.5(b)(2)(ii)(A)(2) does not permit the card issuer to treat the $150 required minimum periodic payment as late until April 26. (ii) A cross reference to any additional information provided about the insurance or coverage accompanying the application or solicitation, as applicable.
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