Compliance Action, Volume 12, Number 6/7

Regulation Z: Changes Proposed for Credit Cards (5 Action Steps)

by Lucy Griffin

More clarity in the presentation of information and prevention of deceptive practices are the underlying themes in the long-awaited proposed changes to Regulation Z.

Credit Reform on the Horizon (7 Action Steps)

By Lucy Griffin

Fueled by consumer complaints, two influential Congressmen are asking the agencies to help curb predatory lending practices.

Format Changes

By Lucy Griffin

To better clarify terms, the Board is proposing changes in the format for delineation of disclosures, referred to as the federal box.

Compliance Notes

• Clear & Conspicuous
• Telephone Sales
• Open-end Fees & Finance Charges
• Solicitations & Firm Offers
• Consistent Terminology
• Not HELOCs
• Exemption for Retirement Plan Loans
• Debt Suspension
• Incidental Disclosures
• Nontraditional Products?
• Examiners & Audits
• Protecting Victim Borrowers
• The Vault Still Stands

Changes to Periodic Statements

Dramatic changes to the face of credit card statements is being proposed to help consumers better understand and use the information provided.

Advertising: The Prime Target

Protecting consumers from advertisements that are predatory or misleading is a prime target in the proposal.

Dr. Z Recognized

Alan Dombrow, known to many as Dr. Z, was recognized at ABA's Regulatory Compliance Conference.

Anti-Predatory Measures

Consumers and regulators are frustrated with credit card programs designed in "sneaky ways" to earn fee income.

Action Summary
Summary of Proposed Changes to Regulation Z (Chart)

By Lucy Griffin

This chart summarizes key substantive changes that are included in the Federal Reserve Board's proposed changes to Regulation Z's credit card disclosures.

Compliance Calendar

In the Editor's Opinion
Sticks and Stones

By Lucy Griffin

Discrimination, and the lack of respect that goes with it, should not be treated lightly when it comes to fair lending

Compliance Q & A

• Valuation of a Secondary Structure
• Fee Restitution Calculation
• Monitoring Data Collection on Small Business Loans
• Service Provider Disclosure Methods
• Paying Employee Assocation Dues
• Disclosures for a Family Trust Mortgage
• Frequency of Account Monitoring
• Providing Notice of Account Closure
• Tax Info for CRA Reporting on Business Loans
• Completing the Affiliated Business Disclosure

Electronic Disclosures

By Lucy Griffin

The FRB is proposing a revision to the interim final rules providing more protection for consumers.