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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).



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

Truth in Lending: SECTION 1026.1 Authority, purpose, coverage, organization, enforcement, and liability. [§ 226.1]

(a) Authority. This part, known as Regulation Z, is issued by the Bureau of Consumer Financial Protection to implement the Federal Truth in Lending Act, which is contained in title I of the Consumer Credit Protection Act, as amended (15 U.S.C. 1601 et seq.). This part also implements title XII, section 1204 of the Competitive Equality Banking Act of 1987 (Pub. L. 100-86, 101 Stat. 552). Furthermore, this part implements certain provisions of the Real Estate Settlement Procedures Act of 1974, as amended (12 U.S.C. 2601 et seq.).

Truth in Lending: SECTION 1026.2 Definitions and rules of construction. [§ 226.2]

(a) Definitions. For purposes of this part, the following definitions apply:

(1) Act means the Truth in Lending Act (15 U.S.C. 1601 et seq.).

(2) Advertisement means a commercial message in any medium that promotes, directly or indirectly, a credit transaction.

(3)(i)6 Application means the submission of a consumer’s financial information for the purposes of obtaining an extension of credit.

Truth in Lending: SECTION 1026.3 Exempt transactions. [§ 226.3]

The following transactions are not subject to this part or, if the exemption is limited to specified provisions of this part, are not subject to those provisions:16

(a) Business, commercial, agricultural, or organizational credit.

(1) An extension of credit primarily for a business, commercial or agricultural purpose.

(2) An extension of credit to other than a natural person, including credit to government agencies or instrumentalities.

Truth in Lending: SECTION 1026.4 Finance charge. [§ 226.4]

(a) Definition. The finance charge is the cost of consumer credit as a dollar amount. It includes any charge payable directly or indirectly by the consumer and imposed directly or indirectly by the creditor as an incident to or a condition of the extension of credit. It does not include any charge of a type payable in a comparable cash transaction.

Truth in Lending: SECTION 1026.6 Account-opening disclosures. [§ 226.6]

(a) Rules affecting home-equity plans. The requirements of this paragraph (a) apply only to home-equity plans subject to the requirements of § 1026.40. A creditor shall disclose the items in this section, to the extent applicable:

(1) Finance charge. The circumstances under which a finance charge will be imposed and an explanation of how it will be determined, as follows:

Truth in Lending: SECTION 1026.8 Identifying transactions on periodic statements. [§ 226.8]

The creditor shall identify credit transactions on or with the first periodic statement that reflects the transaction by furnishing the following information, as applicable:

(a) Sale credit.

(1) Except as provided in paragraph (a)(2) of this section, for each credit transaction involving the sale of property or services, the creditor must disclose the amount and date of the transaction, and either:

Truth in Lending: SECTION 1026.9 Subsequent disclosure requirements. [§ 226.9]

(a) Furnishing statement of billing rights.

(1) Annual statement. The creditor shall mail or deliver the billing rights statement required by § 1026.6(a)(5) and (b)(5)(iii) at least once per calendar year, at intervals of not less than 6 months nor more than 18 months, either to all consumers or to each consumer entitled to receive a periodic statement under § 1026.5(b)(2) for any one billing cycle.

Truth in Lending: SECTION 1026.10 Payments. [§ 226.10]

(a) General rule. A creditor shall credit a payment to the consumer’s account as of the date of receipt, except when a delay in crediting does not result in a finance or other charge or except as provided in paragraph (b) of this section.

(b) Specific requirements for payments.

(1) General rule. A creditor may specify reasonable requirements for payments that enable most consumers to make conforming payments.

Truth in Lending: SECTION 1026.11 Treatment of credit balances; account termination. [§ 226.11]

(a) Credit balances. When a credit balance in excess of $1 is created on a credit account (through transmittal of funds to a creditor in excess of the total balance due on an account, through rebates of unearned finance charges or insurance premiums, or through amounts otherwise owed to or held for the benefit of the consumer), the creditor shall:

(1) Credit the amount of the credit balance to the consumer’s account;

Truth in Lending: SECTION 1026.12 Special credit card provisions. [§ 226.12]

(a) Issuance of credit cards. Regardless of the purpose for which a credit card is to be used, including business, commercial, or agricultural use, no credit card shall be issued to any person except:

(1) In response to an oral or written request or application for the card; or

(2) As a renewal of, or substitute for, an accepted credit card.

(b) Liability of cardholder for unauthorized use.

Truth in Lending: SECTION 1026.13 Billing-error resolution. [§ 226.13]

(a) Definition of billing error. For purposes of this section, the term billing error means:

(1) A reflection on or with a periodic statement of an extension of credit that is not made to the consumer or to a person who has actual, implied, or apparent authority to use the consumer’s credit card or open-end credit plan.

Truth in Lending: SECTION 1026.14 Determination of annual percentage rate. [§ 226.14]

(a) General rule. The annual percentage rate is a measure of the cost of credit, expressed as a yearly rate. An annual percentage rate shall be considered accurate if it is not more than 1/8th of 1 percentage point above or below the annual percentage rate determined in accordance with this section. An error in disclosure of the annual percentage rate or finance charge shall not, in itself, be considered a violation of this part if:

Truth in Lending: SECTION 1026.16 Advertising. [§ 226.16]

(a) Actually available terms. If an advertisement for credit states specific credit terms, it shall state only those terms that actually are or will be arranged or offered by the creditor.

(b) Advertisement of terms that require additional disclosures.

Truth in Lending: SECTION 1026.18 Content of disclosures. [§ 226.18]

For each transaction other than a mortgage transaction subject to § 1026.19(e) and (f), the creditor shall disclose the following information as applicable:37

(a) Creditor. The identity of the creditor making the disclosures.

(b) Amount financed. The amount financed, using that term, and a brief description such as the amount of credit provided to you or on your behalf. The amount financed is calculated by:

Truth in Lending: SECTION 1026.20 Disclosure requirements regarding post-consummation events. [§ 226.20]

(a) Refinancings. A refinancing occurs when an existing obligation that was subject to this subpart is satisfied and replaced by a new obligation undertaken by the same consumer. A refinancing is a new transaction requiring new disclosures to the consumer. The new finance charge shall include any unearned portion of the old finance charge that is not credited to the existing obligation. The following shall not be treated as a refinancing:

(1) A renewal of a single payment obligation with no change in the original terms.

Truth in Lending: SECTION 1026.21 Treatment of credit balances. [§ 226.21]

When a credit balance in excess of $1 is created in connection with a transaction (through transmittal of funds to a creditor in excess of the total balance due on an account, through rebates of unearned finance charges or insurance premiums, or through amounts otherwise owed to or held for the benefit of a consumer), the creditor shall:

(a) Credit the amount of the credit balance to the consumer’s account;

(b) Refund any part of the remaining credit balance, upon the written request of the consumer; and