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Section 1637 - Open End Consumer Credit Plans
Section 1637 - Open End Consumer Credit Plans
§ 1637
Section 1637 - Open end consumer credit plans
(1) The conditions under which a finance charge may be imposed, including the time period (if any) within
which any credit extended may be repaid without incurring a finance charge, except that the creditor may, at
his election and without disclosure, impose no such finance charge if payment is received after the
termination of such time period. If no such time period is provided, the creditor shall disclose such fact.
(2) The method of determining the balance upon which a finance charge will be imposed.
(3) The method of determining the amount of the finance charge, including any minimum or fixed amount
imposed as a finance charge.
(4) Where one or more periodic rates may be used to compute the finance charge, each such rate, the range of
balances to which it is applicable, and the corresponding nominal annual percentage rate determined by
multiplying the periodic rate by the number of periods in a year.
(5) Identification of other charges which may be imposed as part of the plan, and their method of
computation, in accordance with regulations of the Bureau.
(6) In cases where the credit is or will be secured, a statement that a security interest has been or will be taken
in (A) the property purchased as part of the credit transaction, or (B) property not purchased as part of the
credit transaction identified by item or type.
(7) A statement, in a form prescribed by regulations of the Bureau of the protection provided by sections
1666 and 1666i of this title to an obligor and the creditor's responsibilities under sections 1666a and 1666i of
this title. With respect to one billing cycle per calendar year, at intervals of not less than six months or more
than eighteen months, the creditor shall transmit such statement to each obligor to whom the creditor is
required to transmit a statement pursuant to subsection (b) for such billing cycle.
(8) In the case of any account under an open end consumer credit plan which provides for any extension of
credit which is secured by the consumer's principal dwelling, any information which-
(A) is required to be disclosed under section 1637a(a) of this title; and
(B) the Bureau determines is not described in any other paragraph of this subsection.
(1) The outstanding balance in the account at the beginning of the statement period.
(2) The amount and date of each extension of credit during the period, and a brief identification, on or
accompanying the statement of each extension of credit in a form prescribed by the Bureau sufficient to
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Section 1637 - Open end consumer credit plans 15 U.S.C. § 1637
enable the obligor either to identify the transaction or to relate it to copies of sales vouchers or similar
instruments previously furnished, except that a creditor's failure to disclose such information in accordance
with this paragraph shall not be deemed a failure to comply with this part or this subchapter if (A) the credito
maintains procedures reasonably adapted to procure and provide such information, and (B) the creditor
responds to and treats any inquiry for clarification or documentation as a billing error and an erroneously
billed amount under section 1666 of this title. In lieu of complying with the requirements of the previous
sentence, in the case of any transaction in which the creditor and seller are the same person, as defined by the
Bureau, and such person's open end credit plan has fewer than 15,000 accounts, the creditor may elect to
provide only the amount and date of each extension of credit during the period and the seller's name and
location where the transaction took place if (A) a brief identification of the transaction has been previously
furnished, and (B) the creditor responds to and treats any inquiry for clarification or documentation as a
billing error and an erroneously billed amount under section 1666 of this title.
(3) The total amount credited to the account during the period.
(4) The amount of any finance charge added to the account during the period, itemized to show the amounts,
if any, due to the application of percentage rates and the amount, if any, imposed as a minimum or fixed
charge.
(5) Where one or more periodic rates may be used to compute the finance charge, each such rate, the range of
balances to which it is applicable, and, unless the annual percentage rate (determined under section 1606(a)
(2) of this title) is required to be disclosed pursuant to paragraph (6), the corresponding nominal annual
percentage rate determined by multiplying the periodic rate by the number of periods in a year.
(6) Where the total finance charge exceeds 50 cents for a monthly or longer billing cycle, or the pro rata part
of 50 cents for a billing cycle shorter than monthly, the total finance charge expressed as an annual percentag
rate (determined under section 1606(a)(2) of this title), except that if the finance charge is the sum of two or
more products of a rate times a portion of the balance, the creditor may, in lieu of disclosing a single rate for
the total charge, disclose each such rate expressed as an annual percentage rate, and the part of the balance to
which it is applicable.
(7) The balance on which the finance charge was computed and a statement of how the balance was
determined. If the balance is determined without first deducting all credits during the period, that fact and the
amount of such payments shall also be disclosed.
(8) The outstanding balance in the account at the end of the period.
(9) The date by which or the period (if any) within which, payment must be made to avoid additional finance
charges, except that the creditor may, at his election and without disclosure, impose no such additional
finance charge if payment is received after such date or the termination of such period.
(10) The address to be used by the creditor for the purpose of receiving billing inquiries from the obligor.
(11)
(A) A written statement in the following form: "Minimum Payment Warning: Making only the minimum
payment will increase the amount of interest you pay and the time it takes to repay your balance.", or such
similar statement as is established by the Bureau pursuant to consumer testing.
(B) Repayment information that would apply to the outstanding balance of the consumer under the credit
plan, including-
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(i) the number of months (rounded to the nearest month) that it would take to pay the entire amount of
that balance, if the consumer pays only the required minimum monthly payments and if no further
advances are made;
(ii) the total cost to the consumer, including interest and principal payments, of paying that balance in full
if the consumer pays only the required minimum monthly payments and if no further advances are made;
(iii) the monthly payment amount that would be required for the consumer to eliminate the outstanding
balance in 36 months, if no further advances are made, and the total cost to the consumer, including
interest and principal payments, of paying that balance in full if the consumer pays the balance over 36
months; and
(iv) a toll-free telephone number at which the consumer may receive information about accessing credit
counseling and debt management services.
(C)
(i) Subject to clause (ii), in making the disclosures under subparagraph (B), the creditor shall apply the
interest rate or rates in effect on the date on which the disclosure is made until the date on which the
balance would be paid in full.
(ii) If the interest rate in effect on the date on which the disclosure is made is a temporary rate that will
change under a contractual provision applying an index or formula for subsequent interest rate
adjustment, the creditor shall apply the interest rate in effect on the date on which the disclosure is made
for as long as that interest rate will apply under that contractual provision, and then apply an interest rate
based on the index or formula in effect on the applicable billing date.
(E) In the regulations prescribed under subparagraph (D), the Bureau shall require that the disclosure of
such information shall be in the form of a table that-
(i) contains clear and concise headings for each item of such information; and
(ii) provides a clear and concise form stating each item of information required to be disclosed under each
such heading.
(F) In prescribing the form of the table under subparagraph (E), the Bureau shall require that-
(i) all of the information in the table, and not just a reference to the table, be placed on the billing
statement, as required by this paragraph; and
(ii) the items required to be included in the table shall be listed in the order in which such items are set
forth in subparagraph (B).
(G) In prescribing the form of the table under subparagraph (D), the Bureau shall employ terminology
which is different than the terminology which is employed in subparagraph (B), if such terminology is more
easily understood and conveys substantially the same meaning.
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(A) LATE PAYMENT DEADLINE REQUIRED TO BE DISCLOSED.-In the case of a credit card account
under an open end consumer credit plan under which a late fee or charge may be imposed due to the failure
of the obligor to make payment on or before the due date for such payment, the periodic statement required
under subsection (b) with respect to the account shall include, in a conspicuous location on the billing
statement, the date on which the payment is due or, if different, the date on which a late payment fee will be
charged, together with the amount of the fee or charge to be imposed if payment is made after that date.
(B) DISCLOSURE OF INCREASE IN INTEREST RATES FOR LATE PAYMENTS.-If 1 or more late
payments under an open end consumer credit plan may result in an increase in the annual percentage rate
applicable to the account, the statement required under subsection (b) with respect to the account shall
include conspicuous notice of such fact, together with the applicable penalty annual percentage rate, in
close proximity to the disclosure required under subparagraph (A) of the date on which payment is due
under the terms of the account.
(C) PAYMENTS AT LOCAL BRANCHES.-If the creditor, in the case of a credit card account referred to
in subparagraph (A), is a financial institution which maintains branches or offices at which payments on
any such account are accepted from the obligor in person, the date on which the obligor makes a payment
on the account at such branch or office shall be considered to be the date on which the payment is made for
purposes of determining whether a late fee or charge may be imposed due to the failure of the obligor to
make payment on or before the due date for such payment.
(II) Where an extension of credit is subject to a variable rate, the fact that the rate is variable, the annua
percentage rate in effect at the time of the mailing, and how the rate is determined.
(III) Where more than one rate applies, the range of balances to which each rate applies.
(II) Any minimum finance charge imposed for each period during which any extension of credit which
is subject to a finance charge is outstanding.
(III) Any transaction charge imposed in connection with use of the card to purchase goods or services.
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(II) If the length of such "grace period" varies, the card issuer may disclose the range of days in the
grace period, the minimum number of days in the grace period, or the average number of days in the
grace period, if the disclosure is identified as such.
(II) In prescribing regulations to carry out this clause, the Bureau shall define and name not more than
the 5 balance calculation methods determined by the Bureau to be the most commonly used methods.
(B) Exception
Subparagraph (A) shall not apply to any telephone solicitation if-
(II) does not impose any fee in connection with telephone solicitations unless the consumer signifies
acceptance by using the card;
(ii) the card issuer discloses clearly and conspicuously in writing the information described in paragraph
(1) within 30 days after the consumer requests the card, but in no event later than the date of delivery of
the card; and
(iii) the card issuer discloses clearly and conspicuously that the consumer is not obligated to accept the
card or account and the consumer will not be obligated to pay any of the fees or charges disclosed unless
the consumer elects to accept the card or account by using the card.
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(A) In general
Any application to open a credit card account for any person under an open end consumer credit plan, and
any solicitation to open such an account without requiring an application, that is made available to the
public or contained in catalogs, magazines, or other publications shall meet the disclosure requirements of
subparagraph (B), (C), or (D).
(II) described in paragraph (1)(B) in a clear and conspicuous form, subject to subsections (e) and (f);
(ii) a statement, in a conspicuous and prominent location on the application or solicitation, that-
(I) the information is accurate as of the date the application or solicitation was printed;
(II) the information contained in the application or solicitation is subject to change after such date; and
(III) the applicant should contact the creditor for information on any change in the information
contained in the application or solicitation since it was printed;
(iii) a clear and conspicuous disclosure of the date the application or solicitation was printed; and
(iv) a disclosure, in a conspicuous and prominent location on the application or solicitation, of a toll free
telephone number or a mailing address at which the applicant may contact the creditor to obtain any
change in the information provided in the application or solicitation since it was printed.
(i) contains a statement, in a conspicuous and prominent location on the application or solicitation, that-
(I) there are costs associated with the use of credit cards; and
(II) the applicant may contact the creditor to request disclosure of specific information of such costs by
calling a toll free telephone number or by writing to an address, specified in the application;
(ii) contains a disclosure, in a conspicuous and prominent location on the application or solicitation, of a
toll free telephone number and a mailing address at which the applicant may contact the creditor to obtain
such information; and
(iii) does not contain any of the items described in paragraph (1).
(i) the disclosures required by paragraphs (1) through (6) of subsection (a);
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(ii) the disclosures required by subparagraphs (A) and (B) of paragraph (1) of this subsection included
clearly and conspiciously 1 (except that the provisions of section 1632(c) of this title shall not apply); and
(iii) a toll free telephone number or a mailing address at which the applicant may contact the creditor to
obtain any change in the information provided.
(i) Any annual fee, other periodic fee, or membership fee imposed for the issuance or availability of the
charge card, including any account maintenance fee or other charge imposed based on activity or
inactivity for the account during the billing cycle.
(ii) Any transaction charge imposed in connection with use of the card to purchase goods or services.
(iii) A statement that charges incurred by use of the charge card are due and payable upon receipt of a
periodic statement rendered for such charge card account.
(II) described in subparagraph (B) in a clear and conspicuous form, subject to subsections (e) and (f);
(ii) a statement, in a conspicuous and prominent location on the application or solicitation, that-
(I) the information is accurate as of the date the application or solicitation was printed;
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(II) the information contained in the application or solicitation is subject to change after such date; and
(III) the applicant should contact the creditor for information on any change in the information
contained in the application or solicitation since it was printed;
(iii) a clear and conspicuous disclosure of the date the application or solicitation was printed; and
(iv) a disclosure, in a conspicuous and prominent location on the application or solicitation, of a toll free
telephone number or a mailing address at which the applicant may contact the creditor to obtain any
change in the information provided in the application or solicitation since it was printed.
(D) Issuers of charge cards which provide access to open end consumer credit plans
If a charge card permits the card holder to receive an extension of credit under an open end consumer credit
plan, which is not maintained by the charge card issuer, the charge card issuer may provide the information
described in subparagraphs (A) and (B) in the form required by such subparagraphs in lieu of the
information required to be provided under paragraph (1), (2), or (3) with respect to any credit extended
under such plan, if the charge card issuer discloses clearly and conspicuously to the consumer in the
application or solicitation that-
(i) the charge card issuer will make an independent decision as to whether to issue the card;
(ii) the charge card may arrive before the decision is made with respect to an extension of credit under an
open end consumer credit plan; and
(iii) approval by the charge card issuer does not constitute approval by the issuer of the extension of
credit.
The information required to be disclosed under paragraph (1) shall be provided to the charge card holder
by the creditor which maintains such open end consumer credit plan before the first extension of credit
under such plan.
(i) use the term "introductory" in immediate proximity to each listing of the temporary annual percentage
rate applicable to such account, which term shall appear clearly and conspicuously;
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(ii) if the annual percentage rate of interest that will apply after the end of the temporary rate period will
be a fixed rate, state in a clear and conspicuous manner in a prominent location closely proximate to the
first listing of the temporary annual percentage rate (other than a listing of the temporary annual
percentage rate in the tabular format described in section 1632(c) of this title), the time period in which
the introductory period will end and the annual percentage rate that will apply after the end of the
introductory period; and
(iii) if the annual percentage rate that will apply after the end of the temporary rate period will vary in
accordance with an index, state in a clear and conspicuous manner in a prominent location closely
proximate to the first listing of the temporary annual percentage rate (other than a listing in the tabular
format prescribed by section 1632(c) of this title), the time period in which the introductory period will
end and the rate that will apply after that, based on an annual percentage rate that was in effect within 60
days before the date of mailing the application or solicitation.
(B) Exception
Clauses (ii) and (iii) of subparagraph (A) do not apply with respect to any listing of a temporary annual
percentage rate on an envelope or other enclosure in which an application or solicitation to open a credit
card account is mailed.
(i) a general description of the circumstances that may result in the revocation of the temporary annual
percentage rate; and
(ii) if the annual percentage rate that will apply upon the revocation of the temporary annual percentage
rate-
(I) will be a fixed rate, the annual percentage rate that will apply upon the revocation of the temporary
annual percentage rate; or
(II) will vary in accordance with an index, the rate that will apply after the temporary rate, based on an
annual percentage rate that was in effect within 60 days before the date of mailing the application or
solicitation.
(D) Definitions
In this paragraph-
(i) the terms "temporary annual percentage rate of interest" and "temporary annual percentage rate" mean
any rate of interest applicable to a credit card account for an introductory period of less than 1 year, if tha
rate is less than an annual percentage rate that was in effect within 60 days before the date of mailing the
application or solicitation; and
(ii) the term "introductory period" means the maximum time period for which the temporary annual
percentage rate may be applicable.
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Nothing in this paragraph may be construed to supersede subsection (a) of section 1632 of this title, or any
disclosure required by paragraph (1) or any other provision of this subsection.
(i) the information described in subparagraphs (A) and (B) of paragraph (1); and
(i) readily accessible to consumers in close proximity to the solicitation to open a credit card account; and
(ii) updated regularly to reflect the current policies, terms, and fee amounts applicable to the credit card
account.
(C) Definitions
For purposes of this paragraph-
(i) the term "Internet" means the international computer network of both Federal and non-Federal
interoperable packet switched data networks; and
(ii) the term "interactive computer service" means any information service, system, or access software
provider that provides or enables computer access by multiple users to a computer server, including
specifically a service or system that provides access to the Internet and such systems operated or services
offered by libraries or educational institutions.
(i) the signature of a cosigner, including the parent, legal guardian, spouse, or any other individual who
has attained the age of 21 having a means to repay debts incurred by the consumer in connection with the
account, indicating joint liability for debts incurred by the consumer in connection with the account
before the consumer has attained the age of 21; or
(ii) submission by the consumer of financial information, including through an application, indicating an
independent means of repaying any obligation arising from the proposed extension of credit in connection
with the account.
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Section 1637 - Open end consumer credit plans 15 U.S.C. § 1637
The Bureau shall promulgate regulations providing standards that, if met, would satisfy the requirements of
subparagraph (B)(ii).
(A) the date by which, the month by which, or the billing period at the close of which, the account will
expire if not renewed;
(B) the information described in subsection (c)(1)(A) or (c)(4)(A) that would apply if the account were
renewed, subject to subsection (e); and
(C) the method by which the consumer may terminate continued credit availability under the account.
(e) Other rules for disclosures under subsections (c) and (d)
(1) Fees determined on the basis of a percentage
If the amount of any fee required to be disclosed under subsection (c) or (d) is determined on the basis of a
percentage of another amount, the percentage used in making such determination and the identification of the
amount against which such percentage is applied shall be disclosed in lieu of the amount of such fee.
(g) Insurance in connection with certain open end credit card plans
(1) Change in insurance carrier
Whenever a card issuer that offers any guarantee or insurance for repayment of all or part of the outstanding
balance of an open end credit card plan proposes to change the person providing that guarantee or insurance,
the card issuer shall send each insured consumer written notice of the proposed change not less than 30 days
prior to the change, including notice of any increase in the rate or substantial decrease in coverage or service
which will result from such change. Such notice may be included on or with the monthly statement provided
to the consumer prior to the month in which the proposed change would take effect.
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Section 1637 - Open end consumer credit plans 15 U.S.C. § 1637
In any case in which a proposed change described in paragraph (1) occurs, the insured consumer shall be
given the name and address of the new guarantor or insurer and a copy of the policy or group certificate
containing the basic terms and conditions, including the premium rate to be charged.
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Section 1637 - Open end consumer credit plans 15 U.S.C. § 1637
(A) any balances for days in billing cycles that precede the most recent billing cycle; or
(B) any balances or portions thereof in the current billing cycle that were repaid within such time period.
(2) Exceptions
Paragraph (1) does not apply to-
(B) any adjustment to a finance charge as a result of the return of a payment for insufficient funds.
(5) Regulations
The Bureau shall prescribe regulations-
(B) that prevent unfair or deceptive acts or practices in connection with the manipulation of credit limits
designed to increase over-the-limit fees or other penalty fees.
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Section 1637 - Open end consumer credit plans 15 U.S.C. § 1637
With respect to a credit card account under an open end consumer credit plan, an over-the-limit fee may be
imposed only once during a billing cycle if the credit limit on the account is exceeded, and an over-the-limit
fee, with respect to such excess credit, may be imposed only once in each of the 2 subsequent billing cycles,
unless the consumer has obtained an additional extension of credit in excess of such credit limit during any
such subsequent cycle or the consumer reduces the outstanding balance below the credit limit as of the end of
such billing cycle.
(p) Parental approval required to increase credit lines for accounts for which parent is jointly liable
No increase may be made in the amount of credit authorized to be extended under a credit card account for
which a parent, legal guardian, or spouse of the consumer, or any other individual has assumed joint liability fo
debts incurred by the consumer in connection with the account before the consumer attains the age of 21, unles
that parent, guardian, or spouse approves in writing, and assumes joint liability for, such increase.
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Section 1637 - Open end consumer credit plans 15 U.S.C. § 1637
(i) the creditor has agreed to donate a portion of the proceeds of the credit card to the institution,
organization, or foundation (including a lump sum or 1-time payment of money for access);
(ii) the creditor has agreed to offer discounted terms to the consumer; or
(iii) the credit card bears the name, emblem, mascot, or logo of such institution, organization, or
foundation, or other words, pictures, or symbols readily identified with such institution, organization, or
foundation.
(i) any memorandum of understanding between or among a creditor, an institution of higher education, an
alumni association, or foundation that directly or indirectly relates to any aspect of any agreement referred
to in such subparagraph or controls or directs any obligations or distribution of benefits between or
among any such entities;
(ii) the amount of any payments from the creditor to the institution, organization, or foundation during the
period covered by the report, and the precise terms of any agreement under which such amounts are
determined; and
(iii) the number of credit card accounts covered by any such agreement that were opened during the
period covered by the report, and the total number of credit card accounts covered by the agreement that
were outstanding at the end of such period.
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Section 1637 - Open end consumer credit plans 15 U.S.C. § 1637
15 U.S.C. § 1637
Pub. L. 90-321, title I, §127, May 29, 1968, 82 Stat. 153; Pub. L. 93-495, title III, §§304, 305, title IV, §§411,
415, Oct. 28, 1974, 88 Stat. 1511, 1519, 1521; Pub. L. 96-221, title VI, §613(a)-(e), Mar. 31, 1980, 94 Stat.
176, 177; Pub. L. 100-583, §§2(a), 6, Nov. 3, 1988, 102 Stat. 2960, 2968; Pub. L. 100-709, §2(b), Nov. 23,
1988, 102 Stat. 4729; Pub. L. 109-8, title XIII, §§1301(a), 1303(a), 1304(a), 1305(a), 1306(a), Apr. 20, 2005,
119 Stat. 204, 209, 211, 212; Pub. L. 111-24, title I, §§101(a)(1), 102(a), 103, 105, 106(a), title II, §§201(a),
202, 203, title III, §§301, 303, 305(a), May 22, 2009, 123 Stat. 1735, 1738, 1741-1743, 1745-1749; Pub. L.
111-203, title X, §1100A(2), July 21, 2010, 124 Stat. 2107.
AMENDMENTS2010-Pub. L. 111-203 substituted "Bureau" for "Board" wherever appearing. 2009-Subsec. (b)(11). Pub. L. 111-24,
§201(a), amended par. (11) generally, revising the minimum payment disclosures required from creditors. Subsec. (b)(12). Pub. L. 111-24,
§202, amended par. (12) generally. Prior to amendment, par. (12) read as follows: "If a late payment fee is to be imposed due to the failure
of the obligor to make payment on or before a required payment due date, the following shall be stated clearly and conspicuously on the
billing statement:"(A) The date on which that payment is due or, if different, the earliest date on which a late payment fee may be charged."
(B) The amount of the late payment fee to be imposed if payment is made after such date." Subsec. (c)(8). Pub. L. 111-24, §301, added par.
(8).Subsec. (d)(1). Pub. L. 111-24, §203(3), substituted "A card issuer that has changed or amended any term of the account since the last
renewal that has not been previously disclosed or" for "Except as provided in paragraph (2), a card issuer" in introductory
provisions.Subsec. (d)(2), (3). Pub. L. 111-24, §203(1), (2), redesignated par. (3) as (2) and struck out former par. (2) which provided a
special rule for certain disclosures.Subsec. (i). Pub. L. 111-24, §101(a)(1), added subsec. (i).Subsecs. (j) to (l). Pub. L. 111-24, §102(a),
added subsecs. (j) to (l).Subsec. (m). Pub. L. 111-24, §103, added subsec. (m).Subsec. (n). Pub. L. 111-24, §105, added subsec. (n).Subsec.
(o). Pub. L. 111-24, §106(a), added subsec. (o).Subsec. (p). Pub. L. 111-24, §303, added subsec. (p). Subsec. (r). Pub. L. 111-24, §305(a),
added subsec. (r).2005-Subsec. (b)(11). Pub. L. 109-8, §1301(a), added par. (11).Subsec. (b)(12). Pub. L. 109-8, §1305(a), added par. (12).
Subsec. (c)(6). Pub. L. 109-8, §1303(a), added par. (6).Subsec. (c)(7). Pub. L. 109-8, §1304(a), added par. (7).Subsec. (h). Pub. L. 109-8,
§1306(a), added subsec. (h). 1988-Subsec. (a)(8). Pub. L. 100-709 added par. (8).Subsecs. (c) to (f). Pub. L. 100-583, §2(a), added subsecs
(c) to (f).Subsec. (g). Pub. L. 100-583, §6, added subsec. (g). 1980-Subsec. (a)(1). Pub. L. 96-221, §613(a)(1), inserted provisions requiring
the creditor to disclose that no time period is provided.Subsec. (a)(5). Pub. L. 96-221, §613(a)(2), (3), redesignated par. (6) as (5) and
inserted provisions relating to identification of other charges, and regulations by the Board. Former par. (5), relating to elective rights of
the creditor, was struck out. Subsec. (a)(6). Pub. L. 96-221, §613(a)(2), (3), redesignated par. (7) as (6) and revised nomenclature and
expanded statement requirements. Former par. (6) redesignated (5). Subsec. (a)(7), (8). Pub. L. 96-221, §613(a)(2), (d), redesignated par.
(8) as (7) and substituted provisions relating to one billing cycle per calendar year, for provisions relating to each of two billing cycles per
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Section 1637 - Open end consumer credit plans 15 U.S.C. § 1637
year. Former par. (7) redesignated (6).Subsec. (b)(2). Pub. L. 96-221, §613(b), inserted provisions relating to failure of the creditor to
disclose information in accordance with this paragraph, and made minor changes in phraseology.Subsec. (b)(7) to (11). Pub. L. 96-221,
§613(c), struck out par. (7) which related to elective rights of the creditor, and redesignated pars. (8) to (11) as (7) to (10),
respectively.Subsec. (c). Pub. L. 96-221, §613(e), struck out subsec. (c) which related to the time for making disclosures with respect to
open end consumer credit plans having an outstanding balance of more than $1 at or after the close of the first full billing cycle. 1974-
Subsec. (a)(1). Pub. L. 93-495, §415(1), inserted exception relating to nonimposition of a finance charge at the election of the creditor and
without disclosure.Subsec. (a)(8). Pub. L. 93-495, §304(a), added par. (8).Subsec. (b)(2). Pub. L. 93-495, §411, substituted provisions
requiring a brief identification on or accompanying the statement of credit extension sufficient to enable the obligor to identify the
transaction or relate it to copies of sales vouchers or similar instruments previously furnished, for provisions requiring for purchases a
brief identification, unless previously furnished, of the goods or services purchased.Subsec. (b)(10). Pub. L. 93-495, §415(2), inserted
exception relating to nonimposition of additional finance charge at the election of the creditor and without disclosure.Subsec. (b)(11). Pub.
L. 93-495, §305, added par. (11).Subsec. (c). Pub. L. 93-495, §304(b), substituted provisions relating to disclosure requirements in a notice
mailed or delivered to the obligor not later than the time of mailing the next statement required by subsec. (b) of this section, for provisions
relating to disclosure requirements in a notice mailed or delivered to the obligor not later than thirty days after July 1, 1969.
EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111-203 effective on the designated 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 2009 AMENDMENT Amendment by Pub. L. 111-24 effective 9 months after May 22, 2009, except as otherwise
specifically provided, see section 3 of Pub. L. 111-24, set out as a note under section 1602 of this title.Pub. L. 111-24, title I, §101(a)(2),
May 22, 2009, 123 Stat. 1736, provided that: "Notwithstanding section 3 [see Effective Date of 2009 Amendment note set out under section
1602 of this title], section 127(i) of the Truth in Lending Act [ 15 U.S.C. 1637(i) ], as added by this subsection, shall become effective 90
days after the date of enactment of this Act [May 22, 2009]."
EFFECTIVE DATE OF 2005 AMENDMENT Pub. L. 109-8, title XIII, §1301(b)(2), Apr. 20, 2005, 119 Stat. 207, provided that: "Section
127(b)(11) of the Truth in Lending Act [subsec. (b)(11) of this section], as added by subsection (a) of this section, and the regulations issue
under paragraph (1) of this subsection [set out as a note under this section] shall not take effect until the later of-"(A) 18 months after the
date of enactment of this Act [Apr. 20, 2005]; or "(B) 12 months after the publication of such final regulations by the Board [of Governors
of the Federal Reserve System] [Jan. 29, 2009, see 74 F.R. 5244]."Pub. L. 109-8, title XIII, §1303(b)(2), Apr. 20, 2005, 119 Stat. 211,
provided that: "Section 127(c)(6) of the Truth in Lending Act [subsec. (c)(6) of this section], as added by this section, and regulations
issued under paragraph (1) of this subsection [set out as a note under this section] shall not take effect until the later of- "(A) 12 months
after the date of enactment of this Act [Apr. 20, 2005]; or"(B) 12 months after the date of publication of such final regulations by the Board
[of Governors of the Federal Reserve System] [Jan. 29, 2009, see 74 F.R. 5244]."Pub. L. 109-8, title XIII, §1304(b)(2), Apr. 20, 2005, 119
Stat. 212, provided that: "The amendment made by subsection (a) [amending this section] and the regulations issued under paragraph (1)
of this subsection [set out as a note under this section] shall not take effect until the later of-"(A) 12 months after the date of enactment of
this Act [Apr. 20, 2005]; or"(B) 12 months after the date of publication of such final regulations by the Board [of Governors of the Federal
Reserve System] [Jan. 29, 2009, see 74 F.R. 5244]."Pub. L. 109-8, title XIII, §1305(b)(2), Apr. 20, 2005, 119 Stat. 212, provided that: "The
amendment made by subsection (a) [amending this section] and regulations issued under paragraph (1) of this subsection [set out as a not
under this section] shall not take effect until the later of-"(A) 12 months after the date of enactment of this Act [Apr. 20, 2005]; or"(B) 12
months after the date of publication of such final regulations by the Board [of Governors of the Federal Reserve System] [Jan. 29, 2009,
see 74 F.R. 5244]."Pub. L. 109-8, title XIII, §1306(b)(2), Apr. 20, 2005, 119 Stat. 212, provided that: "The amendment made by subsection
(a) [amending this section] and regulations issued under paragraph (1) of this subsection [set out as a note under this section] shall not
take effect until the later of-"(A) 12 months after the date of enactment of this Act [Apr. 20, 2005]; or"(B) 12 months after the date of
publication of such final regulations by the Board [of Governors of the Federal Reserve System] [Jan. 29, 2009, see 74 F.R. 5244]."
EFFECTIVE DATE OF 1988 AMENDMENT For effective date of amendments by Pub. L. 100-709, see Regulations; Effective Date note
below.
17
Section 1637 - Open end consumer credit plans 15 U.S.C. § 1637
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 prescribed to be promulgated at least one year prior to such effective
date, and allowing any creditor to comply with any amendments, in accordance with the regulations, 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 1974 AMENDMENT For effective date of amendment by sections 304 and 305 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 411 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. Amendment by section
415 of Pub. L. 93-495 effective Oct. 28, 1974, see section 416 of Pub. L. 93-495, set out as an Effective Date note under section 1665a of
this title.
REGULATIONSPub. L. 111-24, title II, §201(c), May 22, 2009, 123 Stat. 1745, provided that:"(1) IN GENERAL.-Not later than 6 months
after the date of enactment of this Act [May 22, 2009], the Board [of Governors of the Federal Reserve System] shall issue guidelines, by
rule, in consultation with the Secretary of the Treasury, for the establishment and maintenance by creditors of a toll-free telephone number
for purposes of providing information about accessing credit counseling and debt management services, as required under section 127(b)
(11)(B)(iv) of the Truth in Lending Act [ 15 U.S.C. 1637(b)(11)(B)(iv) ], as added by this section. "(2) APPROVED AGENCIES.-Guidelines
issued under this subsection shall ensure that referrals provided by the toll-free number referred to in paragraph (1) include only those
nonprofit budget and credit counseling agencies approved by a United States bankruptcy trustee pursuant to section 111(a) of title 11,
United States Code."Pub. L. 109-8, title XIII, §1301(b)(1), Apr. 20, 2005, 119 Stat. 207, provided that: "The Board of Governors of the
Federal Reserve System (hereafter in this title [amending this section and sections 1637a, 1638, 1664, and 1665b of this title and enacting
provisions set out as notes under this section and section 1637a of this title] referred to as the 'Board') shall promulgate regulations
implementing the requirements of section 127(b)(11) of the Truth in Lending Act [subsec. (b)(11) of this section], as added by subsection (a
of this section." Pub. L. 109-8, title XIII, §1303(b)(1), Apr. 20, 2005, 119 Stat. 211, provided that: "The Board [of Governors of the Federal
Reserve System] shall promulgate regulations implementing the requirements of section 127(c)(6) of the Truth in Lending Act [subsec. (c)
(6) of this section], as added by this section."Pub. L. 109-8, title XIII, §1304(b)(1), Apr. 20, 2005, 119 Stat. 211, provided that: "The Board
[of Governors of the Federal Reserve System] shall promulgate regulations implementing the requirements of section 127(c)(7) of the Truth
in Lending Act [subsec. (c)(7) of this section], as added by this section."Pub. L. 109-8, title XIII, §1305(b)(1), Apr. 20, 2005, 119 Stat. 212,
provided that: "The Board [of Governors of the Federal Reserve System] shall promulgate regulations implementing the requirements of
section 127(b)(12) of the Truth in Lending Act [subsec. (b)(12) of this section], as added by this section."Pub. L. 109-8, title XIII, §1306(b)
(1), Apr. 20, 2005, 119 Stat. 212, provided that: "The Board [of Governors of the Federal Reserve System] shall promulgate regulations
implementing the requirements of section 127(h) of the Truth in Lending Act [subsec. (h) of this section], as added by this section."Pub. L.
109-8, title XIII, §1309, Apr. 20, 2005, 119 Stat. 213, provided that:"(a) REGULATIONS.-Not later than 6 months after the date of
enactment of this Act [Apr. 20, 2005], the Board [of Governors of the Federal Reserve System], in consultation with the other Federal
banking agencies (as defined in section 3 of the Federal Deposit Insurance Act [ 12 U.S.C. 1813 ]), the National Credit Union
Administration Board, and the Federal Trade Commission, shall promulgate regulations to provide guidance regarding the meaning of the
term 'clear and conspicuous', as used in subparagraphs (A), (B), and (C) of section 127(b)(11) and clauses (ii) and (iii) of section 127(c)(6)
(A) of the Truth in Lending Act [subsecs. (b)(11) and (c)(6)(A) of this section]."(b) EXAMPLES.-Regulations promulgated under subsection
(a) shall include examples of clear and conspicuous model disclosures for the purposes of disclosures required by the provisions of the
Truth in Lending Act [ 15 U.S.C. 1601 et seq.] referred to in subsection (a)."(c) STANDARDS.-In promulgating regulations under this
section, the Board [of Governors of the Federal Reserve System] shall ensure that the clear and conspicuous standard required for
disclosures made under the provisions of the Truth in Lending Act referred to in subsection (a) can be implemented in a manner which
results in disclosures which are reasonably understandable and designed to call attention to the nature and significance of the information
in the notice."
REGULATIONS; EFFECTIVE DATE For provisions relating to promulgation of regulations to implement amendment by Pub. L. 100-
709, and effective date of such amendment in connection with those regulations, see section 7 of Pub. L. 100-709, set out as a note under
section 1637a of this title.Pub. L. 100-583, §7, Nov. 3, 1988, 102 Stat. 2968, provided that: "Any regulation required to be prescribed by th
Board under the amendments made by section 2 [amending this section and section 1632 of this title] shall-"(1) take effect not later than
18
Section 1637 - Open end consumer credit plans 15 U.S.C. § 1637
the end of the 150-day period beginning on the date of the enactment of this Act [Nov. 3, 1988]; and "(2) apply only with respect to
applications, solicitations, and other material distributed after the end of the 150-day period beginning after the end of the period referred
to in paragraph (1), except that-"(A) in the case of applications and solicitations subject to paragraph (3) or (4)(C) of section 127(c) of the
Truth in Lending Act [ 15 U.S.C. 1637(c)(3), (4)(C) ] (as added by section 2), such period shall be 240 days; and"(B) any card issuer may,
at its option, comply with the requirements of the amendments made by this Act [see Short Title of 1988 Amendment note under section
1601 of this title] prior to the applicable effective date, in which case the amendments made by this Act shall be fully applicable to such
card issuer."
REPORTS TO CONGRESSPub. L. 111-24, title III, §305(b), May 22, 2009, 123 Stat. 1750, provided that:"(1) STUDY.-The Comptroller
General of the United States shall, from time to time, review the reports submitted by creditors under section 127(r) of the Truth in Lending
Act [ 15 U.S.C. 1637(r) ], as added by this section, and the marketing practices of creditors to determine the impact that college affinity
card agreements and college student card agreements have on credit card debt."(2) REPORT.-Upon completion of any study under
paragraph (1), the Comptroller General shall periodically submit a report to the Congress on the findings and conclusions of the study,
together with such recommendations for administrative or legislative action as the Comptroller General determines to be appropriate."Pub
L. 100-583, §8, Nov. 3, 1988, 102 Stat. 2969, provided that: "Not later than 1 year after the regulations prescribed under section 7 of this
Act [set out as a note above] become effective and annually thereafter, the Board of Governors of the Federal Reserve System shall transm
to the Congress a report containing an assessment by the Board of the profitability of credit card operations of depository institutions,
including an analysis of any impact of the amendments made by this Act [see Short Title of 1988 Amendment note under section 1601 of thi
title] on such profitability."
19