Consumer Payment Card News

Disclosure Rules

Revised rules for credit card solicitations and applications which make disclosure tables more noticeable, simpler, and easier to use, went into effect this month. The mandatory changes, effective October 1, requires, among other items, card issuers to disclose the regular APR for purchases in at least 18-point type, under a separate heading in the disclosure table, so that it is more prominent than any temporary introductory rate. The Federal Reserve Board’s revised rules for credit card solicitations and applications also requires that disclosures be “clear and conspicuous” in at least 12-point type. Cash advance and balance transfer APRs must also be included in the table under the revised rules. Although the Truth in Lending rules require that a cost disclosure table be included with credit card solicitations, the rules generally do not regulate the manner in which the account terms and features are presented in a card issuer’s promotional materials. In September 2000, The Federal Reserve Board published the rules amending Regulation Z, which implements the Truth in Lending Act, to revise the disclosure requirements for credit and charge card solicitations and applications. For more information visit: http://www.federalreserve.gov/boarddocs/press/boardacts/2000/20000928/defaul t.htm

Leave A Reply