Consumer Fair Credit Probe

Consumer Fair Credit Probe Information

SUBCHAPTER I -CONSUMER CREDIT COST DISCLOSURE PART A - GENERAL PROVISIONS Sec.

1601. Congressional findings and declaration of purpose.

(a) Informed use of credit.

(b) Terms of personal property leases.

1602. Definitions and rules of construction.

1603. Exempted transactions.

1604. Disclosure guidelines.

(a) Promulgation, contents, etc., of regulations.

(b) Model disclosure forms and clauses; publication, criteria, compliance, etc.

(d) Effective dates of regulations containing new disclosure requirements.

(f) Exemption authority.

(g) Waiver for certain borrowers.

1605. Determination of finance charge.

(a) ''Finance charge'' defined.

(b) Life, accident, or health insurance premiums included in finance charge.

(d) Items exempted from computation of finance charge in all credit transactions.

(e) Items exempted from computation of finance charge in extensions of credit secured by an interest in real property.

(f) Tolerances for accuracy.

1606. Determination of annual percentage rate.

(a) ''Annual percentage rate'' defined.

(b) Computation of rate of finance charges for balances within a specified range.

(d) Use of rate tables or charts having allowable variance from determined rates.

(e) Authorization of tolerances in determining annual percentage rates.

1607. Administrative enforcement.

(a) Enforcing agencies.

(b) Violations of this subchapter deemed violations of preexisting statutory requirements; additional agency powers.

(d) Rules and regulations.

(e) Adjustment of finance charges; procedures applicable, coverage, criteria, etc.

1608. Views of other agencies. 1609. Repealed. 1610. Effect on other laws.

(a) Inconsistent provisions; procedures applicable for determination.

(b) State credit charge statutes.

(d) Contract or other obligations under State or Federal law.

(e) Certain credit and charge card application and solicitation disclosure provisions.

1611. Criminal liability for willful and knowing violation.

1612. Effect on government agencies.

(a) Consultation requirements respecting compliance of credit instruments issued to participating creditor.

(b) Inapplicability of Federal civil or criminal penalties to Federal, State, and local agencies.

(c) Inapplicability of Federal civil or criminal penalties to participating creditor where violating instrument issued by United States.

(d) Applicability of State penalties to violations by participating creditor.

1613. Annual reports to Congress by Board.

1614. Repealed.

1615. Prohibition on use of ''Rule of 78's'' in connection with mortgage refinancing and other consumer loans.

(a) Prompt refund of unearned interest required.

(b) Use of ''Rule of 78's ''prohibited.

(d) Definitions.

PART B -CREDIT TRANSACTIONS

1631. Disclosure requirements.

(a) Duty of creditor or lessor respecting one or more than one obligor.

(b) Creditor or lessor required to make disclosure.

(d) Tolerances for numerical disclosures.

1632. Form of disclosure; additional information.

(a) Information clearly and conspicuously disclosed; ''annual percentage rate'' and ''finance charge''; order of disclosures and use of different terminology.

(b) Optional information by creditor or lessor.

1633. Exemption for State-regulated transactions.

1634. Effect of subsequent occurrence.

1635. Right of rescission as to certain transactions.

(a) Disclosure of obligor's right to rescind.

(b) Return of money or property following rescission.

(d) Modification and waiver of rights.

(e) Exempted transactions; reapplication of provisions.

(f) Time limit for exercise of right.

(g) Additional relief.

(h) Limitation on rescission.

(i) Rescission rights in foreclosure.

1636. Repealed.

1637. Open end consumer credit plans.

(a) Required disclosures by creditor.

(b) Statement required with each billing cycle.

(d) Disclosure prior to renewal.

(e) Other rules for disclosures under subsections (c) and (d).

(f) Disclosure of range of certain fees which vary by State allowed.

(g) Insurance in connection with certain open end credit card plans.

1637a. Disclosure requirements for open end consumer credit plans secured by consumer's principal dwelling.

(a) Application disclosures.

(b) Time and form of disclosures.

(d) ''Principal dwelling'' defined.

(e) Pamphlet.

1638. Transactions other than under an open end credit plan.

(a) Required disclosures by creditor.

(b) Form and timing of disclosures; residential mortgage transaction requirements.

(d) Timing of disclosure in cases of an addition of a deferred payment price to an existing outstanding balance.

1639. Requirements for certain mortgages.

(a) Disclosures.

(b) Time of disclosures.

(d) Limitations after default.

(e) No balloon payments.

(f) No negative amortization.

(g) No prepaid payments.

(h) Prohibition on extending credit without regard to payment ability of consumer.

(i) Requirements for payments under home improvement contracts.

(j) Consequence of failure to comply.

(k) ''Affiliate'' defined.

(l) Discretionary regulatory authority of Board.

1640. Civil liability.

(a) Individual or class action for damages; amount of award; factors determining amount of award.

(b) Correction of errors.

(d) Liability in transaction or lease involving multiple obligors.

(e) Jurisdiction of courts; limitations on actions; State attorney general enforcement.

(f) Good faith compliance with rule, regulation, or interpretation of Board or with interpretation or

approval of duly authorized official or employee of Federal Reserve System.

(g) Recovery for multiple failures to disclose.

(h) Offset from amount owed to creditor or assignee; rights of defaulting consumer.

(i) Class action moratorium.

1641. Liability of assignees.

(a) Prerequisites.

(b) Proof of compliance with statutory provisions.

(d) Rights upon assignment of certain mortgages.

(e) Liability of assignee for consumer credit transactions secured by real property.

(f) Treatment of servicer.

1642. Issuance of credit cards.

1643. Liability of holder of credit card.

(a) Limits on liability.

(b) Burden of proof.

(d) Exclusiveness of liability.

1644. Fraudulent use of credit cards; penalties.

(a) Use, attempt or conspiracy to use card in transaction affecting interstate or foreign commerce.

(b) Transporting, attempting or conspiring to transport card in interstate commerce.

(d) Receipt, concealment, etc., of goods obtained by use of card.

(e) Receipt, concealment, etc., of tickets for interstate or foreign transportation obtained by use of card.

(f) Furnishing of money, etc., through use of card.

1645. Business credit cards; limits on liability of employees.

1646. Dissemination of annual percentage rates; implementation, etc.

(a) Annual percentage rates.

(b) Credit card price and availability information.

1647. Home equity plans.

(a) Index requirement.

(b) Grounds for acceleration of outstanding balance.

(d) Terms changed after application.

(e) Additional requirements relating to refunds and imposition of nonrefundable fees.

1648. Reverse mortgages.

(a) In general.

(b) Projected total cost.

1649. Certain limitations on liability.

(a) Limitations on liability.

(b) Exceptions.

PART C - CREDIT ADVERTISING 1661. Catalogs and multiple-page advertisements.

1662. Advertising of down payments and installments.

1663. Advertising of open end credit plans.

1664. Advertising of credit other than open end plans.

(a) Exclusion of open end credit plans.

(b) Advertisements of residential real estate.

(d) Requisite disclosures in advertisement.

1665. Nonliability of advertising media.

1665a. Use of annual percentage rate in oral disclosures; exceptions.

1665b. Advertising of open end consumer credit plans secured by consumer's principal dwelling.

(a) In general.

(b) Tax deductibility.

(d) Discounted initial rate.

(e) Balloon payment.

(f) ''Balloon payment'' defined.

PART D - CREDIT BILLING

1666. Correction of billing errors.

(a) Written notice by obligor to creditor; time for and contents of notice; procedure upon receipt of notice

by creditor.

(b) Billing error.

(d) Restricting or closing by creditor of account regarded by obligor to contain a billing error.

(e) Effect of noncompliance with requirements by creditor.

1666a. Regulation of credit reports.

(a) Reports by creditor on obligor's failure to pay amount regarded as billing error.

(b) Reports by creditor on delinquent amounts in dispute; notification of obligor of parties notified

of delinquency.

1666b. Length of billing period in credit statement for imposition of finance charge; effect of failure of timely mailing or delivery of statement.

(a) Additional finance charge.

(b) Excusable cause.

1666c. Prompt crediting of payments; imposition of finance charge.

1666d. Treatment of credit balances.

1666e. Notification of credit card issuer by seller of return of goods, etc., by obligor; credit for account of obligor.

1666f. Inducements to cardholders by sellers of cash discounts for payments by cash, check or similar means; credit card surcharge prohibition; finance charge for sales transactions involving cash discounts.

(a) Cash discounts.

(b) Finance charge. 1666g. Tie-in services prohibited for issuance of credit card.

1666h. Offset of cardholder's indebtedness by issuer of credit card with funds deposited with issuer by cardholder; remedies of creditors under State law not affected.

(a) Offset against consumer's funds.

(b) Attachments and levies.

1666i. Assertion by cardholder against card issuer of claims and defenses arising out of credit card transaction; prerequisites; limitation on amount of claims or defenses.

(a) Claims and defenses assertable.

(b) Amount of claims and defenses assertable. 1666j. Applicability of State laws.

(a) Consistency of provisions

(b) Exemptions by Board from credit billing requirements.

PART E - CONSUMER LEASES 1667. Definitions.

1667a. Consumer lease disclosures.

1667b. Lessee's liability on expiration or termination of lease.

(a) Estimated residual value of property as basis; presumptions; action by lessor for excess liability; mutually agreeable final adjustment.

(b) Penalties and charges for delinquency,

default, or early termination.

1667c. Consumer lease advertising; liability of advertising media.

(a) In general.

(b) Advertising medium not liable.

1667d. Civil liability of lessors.

(a) Grounds for maintenance of action.

(b) Additional grounds for maintenance of action; ''creditor'' defined.

1667e. Applicability of State laws; exemptions by Board from leasing requirements.

1667f. Regulations.

(a) Regulations authorized.

(b) Model disclosure.

SUBCHAPTER II - RESTRICTIONS ON GARNISHMENT 1671. Congressional findings and declaration of purpose.

(a)Disadvantages of garnishment.

(b) Necessity for regulation.

1672. Definitions.

1673. Restriction on garnishment.

(a) Maximum allowable garnishment.

(b) Exceptions.

1674. Restriction on discharge from employment by reason of garnishment.

(a) Termination of employment.

(b) Penalties.

1675. Exemption for State-regulated garnishments.

1676. Enforcement by Secretary of Labor.

1677. Effect on State laws.

SUBCHAPTER II-A - CREDIT REPAIR ORGANIZATIONS

1679. Findings and purposes.

(a) Findings.

(b)Purposes.

1679a. Definitions.

1679b. Prohibited practices.

(a) In general.

(b) Payment in advance.

1679c. Disclosures.

(a) Disclosure required.

(b) Separate statement requirement.

1679d. Credit repair organizations contracts.

(a) Written contracts required.

(b) Terms and conditions of contract.

1679e. Right to cancel contract.

(a) In general.

(b) Cancellation form and other information.

1679f. Noncompliance with this subchapter.

(a) Consumer waivers invalid.

(b) Attempt to obtain waiver.

1679g. Civil liability.

(a) Liability established.

(b) Factors to be considered in awarding punitive damages.

1679h. Administrative enforcement.

(a) In general.

(b) Violations of this subchapter treated as violations of Federal Trade Commission Act.

1679i. Statute of limitations.

1679j. Relation to State law.

SUBCHAPTER III- CREDIT REPORTING AGENCIES 1681. Congressional findings and statement of purpose.

(a) Accuracy and fairness of credit reporting.

(b) Reasonable procedures.

1681a. Definitions; rules of construction.

1681b. Permissible purposes of consumer reports.

(a) In general.

(b) Conditions for furnishing and using consumer reports for employment purposes.

(d) Reserved.

(e) Election of consumer to be excluded from lists.

(f) Certain use or obtaining of information prohibited.

(g) Furnishing reports containing medical information.

1681c. Requirements relating to information contained in consumer reports.

(a) Information excluded from consumer reports.

(b) Exempted cases.

(d) Information required to be disclosed.

(e) Indication of closure of account by consumer.

(f) Indication of dispute by consumer.

1681d. Disclosure of investigative consumer reports.

(a) Disclosure of fact of preparation.

(b) Disclosure on request of nature and scope of investigation.

(d) Prohibitions.

1681e. Compliance procedures.

(a) Identity and purposes of credit users.

(b) Accuracy of report.

(d) Notice to users and furnishers of information.

(e) Procurement of consumer report for resale.

1681f. Disclosures to governmental agencies.

1681g. Disclosures to consumers.

(a) Information on file; sources; report recipients.

(b) Exempt information.

1681h. Conditions and form of disclosure to consumers.

(a) In general.

(b)Other forms of disclosure.

(d) Persons accompanying consumer.

(e) Limitation of liability.

1681i. Procedure in case of disputed accuracy.

(a) Reinvestigations of disputed information.

(b) Statement of dispute.

(d) Notification of deletion of disputed information.

1681j. Charges for certain disclosures.

(a) Reasonable charges allowed for certain disclosures.

(b) Free disclosure after adverse notice to consumer.

(d) Other charges prohibited.

1681k. Public record information for employment purposes.

1681l. Restrictions on investigative consumer reports.

1681m. Requirements on users of consumer reports.

(a) Duties of users taking adverse actions on basis of information contained in consumer reports.

(b) Adverse action based on information obtained from third parties other than consumer reporting

agencies.

(d) Duties of users making written credit or insurance solicitations on basis of information contained in consumer files.

1681n. Civil liability for willful noncompliance.

(a) In general.

(b) Civil liability for knowing noncompliance.

1681o. Civil liability for negligent noncompliance.

(a) In general.

(b) Attorney's fees.

1681p. Jurisdiction of courts; limitation of actions.

1681q. Obtaining information under false pretenses.

1681r. Unauthorized disclosures by officers or employees.

1681s. Administrative enforcement.

(a) Enforcement by Federal Trade Commission.

(b) Enforcement by other agencies.

(d) Enforcement under other authority.

(e) Interpretive authority.

1681s-1. Information on overdue child support obligations.

1681s-2. Responsibilities of furnishers of information to consumer reporting agencies.

(a) Duty of furnishers of information to provide accurate information.

(b) Duties of furnishers of information upon notice of dispute.

(d) Limitation on enforcement.

1681t. Relation to State laws.

(a) In general.

(b) General exceptions.

(d) Limitations.

1681u. Disclosures to FBI for counterintelligence purposes.

(a) Identity of financial institutions.

(b) Identifying information.

(d) Confidentiality.

(e) Payment of fees.

(f) Limit on dissemination.

(g) Rules of construction.

(h) Reports to Congress.

(i) Damages.

(j) Disciplinary actions for violations.

(k) Good-faith exception.

(l) Limitation of remedies.

(m) Injunctive relief.

SUBCHAPTER IV - EQUAL CREDIT OPPORTUNITY

1691. Scope of prohibition.

(a) Activities constituting discrimination.

(b) Activities not constituting discrimination.

(d) Reason for adverse action; procedure applicable; ''adverse action'' defined.

(e) Appraisals; copies of reports to applicants; costs.

1691a. Definitions; rules of construction.

1691b. Promulgation of regulations by Board; establishment of Consumer Advisory Council by Board; duties, membership, etc., of Council.

(a) Regulations.

(b) Consumer Advisory Council.

1691c. Administrative enforcement.

(a) Enforcing agencies.

(b) Violations of subchapter deemed violations of preexisting statutory requirements; additional agency powers.

(d) Rules and regulations by enforcing agencies.

1691c-1. Incentives for self-testing and self-correction.

(a) Privileged information.

(b) Results of self-testing.

1691d. Applicability of other laws.

(a) Requests for signature of husband and wife for creation of valid lien, etc.

(b) State property laws affecting creditworthiness.

(d) Combining credit accounts of husband and wife with same creditor to determine permissible finance charges or loan ceilings under Federal or State laws.

(e) Election of remedies under subchapter or State law; nature of relief determining applicability.

(f) Compliance with inconsistent State laws; determination of inconsistency.

(g) Exemption by regulation of credit transactions covered by State law; failure to comply with State law.

1691e. Civil liability.

(a) Individual or class action for actual damages.

(b) Recovery of punitive damages in individual and class action for actual damages; exemptions; maximum amount of punitive damages in individual actions; limitation on total recovery in class actions; factors determining amount of award.

(d) Recovery of costs and attorney fees.

(e) Good faith compliance with rule, regulation, or interpretation of Board or interpretation or approval by an official or employee of Federal Reserve System duly authorized by Board.

(f) Jurisdiction of courts; time for maintenance of action; exceptions.

(g) Request by responsible enforcement agency to Attorney General for civil action.

(h) Authority for Attorney General to bring civil action; jurisdiction.

(i) Recovery under both subchapter and fair housing enforcement provisions prohibited for violation based on same transaction.

(j) Discovery of creditor's granting standards.

(k) Notice to HUD of violations.

1691f. Annual reports to Congress; contents.

SUBCHAPTER V - DEBT COLLECTION PRACTICES

1692. Congressional findings and declaration of purpose.

(a) Abusive practices.

(b) Inadequacy of laws.

(d) Interstate commerce.

(e) Purposes.

1692a. Definitions.

1692b. Acquisition of location information.

1692c. Communication in connection with debt collection.

(a) Communication with the consumer generally.

(b) Communication with third parties.

(d) ''Consumer'' defined.

1692d. Harassment or abuse. \

1692e. False or misleading representations.

1692f. Unfair practices.

1692g. Validation of debts.

(a) Notice of debt; contents.

(b) Disputed debts.

1692h. Multiple debts.

1692i. Legal actions by debt collectors.

(a) Venue.

(b) Authorization of actions.

1692j. Furnishing certain deceptive forms.

1692k. Civil liability.

(a) Amount of damages.

(b) Factors considered by court.

(d) Jurisdiction.

(e) Advisory opinions of Commission.

1692l. Administrative enforcement.

(a) Federal Trade Commission.

(b) Applicable provisions of law.

(d) Rules and regulations.

1692m. Reports to Congress by the Commission; views of other Federal agencies.

1692n. Relation to State laws. 1692o. Exemption for State regulation.

SUBCHAPTER VI - ELECTRONIC FUND TRANSFERS

1693. Congressional findings and declaration of purpose.

(a) Rights and liabilities undefined.

(b) Purposes.

1693a. Definitions.

1693b. Regulations.

(a) Prescription by Board.

(b) Issuance of model clauses.

(d) Applicability to service providers other than certain financial institutions.

1693c. Terms and conditions of transfers.

(a) Disclosures; time; form; contents.

(b) Notification of changes to consumer.

1693d. Documentation of transfers.

(a) Availability of written documentation to consumer; contents.

(b) Notice of credit to consumer.

(d) Consumer passbook accounts.

(e) Accounts other than passbook accounts.

(f) Documentation as evidence.

1693e. Preauthorized transfers.

1693f. Error resolution.

(a) Notification to financial institution of error.

(b) Correction of error; interest.

(d) Absence of error; finding; explanation.

(e) Treble damages.

(f) Acts constituting error.

1693g. Consumer liability.

(a) Unauthorized electronic fund transfers; limit.

(b) Burden of proof.

(d) Restriction on liability.

(e) Scope of liability.

1693h. Liability of financial institutions.

(a) Action or failure to act proximately causing damages.

(b) Acts of God and technical malfunctions.

1693i. Issuance of cards or other means of access.

(a) Prohibition; proper issuance.

(b) Exceptions.

1693j. Suspension of obligations.

1693k. Compulsory use of electronic fund transfers.

1693l. Waiver of rights.

1693m. Civil liability.

(a) Individual or class action for damages; amount of award.

(b) Factors determining amount of award.

(d) Good faith compliance with rule, regulation, or interpretation of Board or approval of duly authorized official or employee of Federal Reserve System.

(e) Notification to consumer prior to action; adjustment of consumer's account.

(f) Action in bad faith or for harassment; attorney's fees.

(g) Jurisdiction of courts; time for maintenance of action.

1693n. Criminal liability.

(a) Violations respecting giving of false or inaccurate information, failure to provide information, and failure to comply with provisions of this subchapter.

(b) Violations affecting interstate or foreign commerce.

1693o. Administrative enforcement.

(a) Enforcing agencies.

(b) Violations of subchapter deemed violations of preexisting statutory requirements; additional powers.

1693p. Reports to Congress.

1693q. Relation to State laws.

1693r. Exemption for State regulation.