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Truth in Lending: § 1666f. Inducements to cardholders by sellers of cash discounts for payments by cash, check or similar means; finance charge for sales transactions involving cash discounts [TILA § 167]

(a) Cash discounts

With respect to credit card which may be used for extensions of credit in sales transactions in which the seller is a person other than the card issuer, the card issuer may not, by contract, or otherwise, prohibit any such seller from offering a discount to a cardholder to induce the cardholder to pay by cash, check, or similar means rather than use a credit card.

(b) Finance charge

Collection Actions: Listing of Provisions

Title 16—Commercial Practices

Chapter I—Federal Trade Commission

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Subchapter D—Trade Regulation Rules

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Part 444—Credit Practices

Sec.

444.1 Definitions

444.2 Unfair credit practices

444.3 Unfair or deceptive cosigner practices

444.4 Late charges

444.5 State exemptions

Collection Actions: 16 C.F.R. § 444.1 Definitions

(a) Lender. A person who engages in the business of lending money to consumers within the jurisdiction of the Federal Trade Commission.

(b) Retail installment seller. A person who sells goods or services to consumers on a deferred payment basis or pursuant to a lease-purchase arrangement within the jurisdiction of the Federal Trade Commission.

(c) Person. An individual corporation, or other business organization.

Collection Actions: 16 C.F.R. § 444.2 Unfair credit practices

(a) In connection with the extension of credit to consumers in or affecting commerce, as commerce is defined in the Federal Trade Commission Act, it is an unfair act or practice within the meaning of Section 5 of that Act for a lender or retail installment seller directly or indirectly to take or receive from a consumer an obligation that:

Collection Actions: 16 C.F.R. § 444.3 Unfair or deceptive cosigner practices

(a) In connection with the extension of credit to consumers in or affecting commerce, as commerce is defined in the Federal Trade Commission Act, it is:

(1) A deceptive act or practice within the meaning of section 5 of that Act for a lender or retail installment seller, directly or indirectly, to misrepresent the nature or extent of cosigner liability to any person.

Collection Actions: 16 C.F.R. § 444.4 Late charges

(a) In connection with collecting a debt arising out of an extension of credit to a consumer in or affecting commerce, as commerce is defined in the Federal Trade Commission Act, it is an unfair act or practice within the meaning of section 5 of that Act for a creditor, directly or indirectly, to levy or collect any delinquency charge on a payment, which payment is otherwise a full payment for the applicable period and is paid on its due date or within an applicable grace period, when the only delinquency is attributable to late fee(s) or delinquency c

Collection Actions: 16 C.F.R. § 444.5 State exemptions

(a) If, upon application to the Federal Trade Commission by an appropriate State agency, the Federal Trade Commission determines that:

(1) There is a State requirement or prohibition in effect that applies to any transaction to which a provision of this rule applies; and

(2) The State requirement or prohibition affords a level of protection to consumers that is substantially equivalent to, or greater than, the protection afforded by this rule;

Truth in Lending: Amendment History and Title and Chapter

Competitive Equality Banking Act of 1987, 12 U.S.C. § 3806, Pub. L. No. 100-86, 101 Stat. 662, Title XII, § 1204 (Aug. 10, 1987), as amended by Pub. L. No. 102-550, 106 Stat. 3893, Title IX, § 952 (Oct. 28, 1992).

TITLE 12. BANKS AND BANKING

CHAPTER 39—ALTERNATIVE MORTGAGE TRANSACTIONS

Truth in Lending: § 3806. Adjustable rate mortgage caps

(a) In general

Any adjustable rate mortgage loan originated by a creditor shall include a limitation on the maximum interest rate that may apply during the term of the mortgage loan.

(b) Regulations

The Board of Governors of the Federal Reserve System shall prescribe regulations to carry out the purposes of this section.

(c) Enforcement

Fair Credit Reporting: 6.1.1 Overview

Before 1996, furnishers of information to consumer reporting agencies (CRAs) were essentially outside the scope of the FCRA. Despite their central role, furnishers were effectively immune from federal oversight. Before 1996, furnishers were under no federal duty to provide CRAs with correct information, to respond to or investigate a consumer’s dispute, or to cooperate with a CRA’s reinvestigation of the completeness or accuracy of the information which the furnisher itself provided.

Fair Credit Reporting: 6.2.1 Furnishers Provide Information to Consumer Reporting Agencies

Anyone who furnishes consumer information to a consumer reporting agency is a “furnisher” of information under the FCRA.34 No special attribute is required and, in fact, the terms furnisher and furnishing are not defined by the Act.35 The FCRA simply refers to “a person who furnishes information to a consumer reporting agency,” or similar terms.36 Regulation V defines “furnisher,” for the purposes of the furnisher accuracy guidelines, as an entity that f

Fair Credit Reporting: 6.2.2.1 Special Rules for Affiliate Sharing

The rules of the FCRA, including those that apply to furnishers, generally do not apply to companies furnishing information to other entities affiliated by common ownership or corporate control, even if the receiving affiliate functions as an in-house credit reporting agency. Such affiliate sharing of information is generally outside the scope of the FCRA.59 However, a consumer may opt out of the use by an affiliate of this exempt information when the information is used to market its products or services.

Fair Credit Reporting: 6.2.2.2 Direct Selling of Information Not Covered

Creditors sometimes sell information about their customers. In addition to sharing information with their own affiliates, they will sell lists of customers meeting different criteria to other creditors, to direct marketers, and to other compilers of marketing databases. Although such a creditor or other business may be furnishing information, it is not furnishing information to a CRA.

Fair Credit Reporting: 6.3.2.1 Generally

Metro 2 is a standardized reporting format used by furnishers to provide information about consumer accounts to the nationwide CRAs.78 The Metro format software had been around since the 1970s. Metro 2 is the version created after the 1996 amendments to the FCRA and was designed by the nationwide CRAs.

Fair Credit Reporting: 6.3.2.3 Obtaining The Metro 2 Manual in Litigation

The credit reporting industry distributes The Metro 2 Manual widely. Even so, when information about the Metro 2 format is provided in discovery, many defendants routinely insist on confidentiality agreements or protective orders. The justification for these discovery restrictions is doubtful, given that no competitive advantage is at stake and given the availability of much Metro 2 information on various websites.

Fair Credit Reporting: 6.3.2.4 The Mechanics of Metro 2

Creditors use Metro 2 to provide periodic reports to one or more of the CRAs about their current accounts and those just closed out. Data may be transferred by electronic transmission, on data tapes, or by computer disks or cartridges. Normally the “computer dump” of credit data is made monthly, although it can be more or less frequent.91 Generally speaking, creditors convert or transfer their own data into the Metro 2 format so that updated information on their entire active customer base is transferred to the CRAs at one time.

Fair Credit Reporting: 6.3.2.5 Other Standardized Methods of Communication

While Metro 2 is the overwhelmingly dominant way for information to be furnished to CRAs, Metro 2 users can and do submit information about consumers on an individualized basis in some circumstances. For example, when consumers have disputed the accuracy or completeness of information with a CRA, the CRA and the furnisher of that information will communicate about that specific transaction using a Consumer Dispute Verification (CDV).

Fair Credit Reporting: 6.3.3.1 Generally

The Metro 2 format is divided into several “record layouts.” Each layout is a separate chart or table used to collect a defined set of related information. For example, the so-called header record provides information identifying the furnisher, the CRA to which the information is being furnished, and information about the computer transmission itself. Another layout might be a segment used to communicate information about mortgages or employment.