[Federal Register Volume 76, Number 104 (Tuesday, May 31, 2011)]
[Rules and Regulations]
[Pages 31221-31222]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-12795]
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FEDERAL RESERVE SYSTEM
12 CFR Part 226
[Docket No. R-1393]
RIN 7100-AD55
Truth in Lending; Correction
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Final rule; correction.
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SUMMARY: This document corrects certain typographical errors in the
regulation and the staff commentary of the final rule published in the
Federal Register of April 25, 2011. The final rule amends Regulation Z,
which implements the Truth in Lending Act, in order to clarify certain
aspects of the rules that implement the Credit Card Accountability
Responsibility and Disclosure Act of 2009.
DATES: Effective Date: October 1, 2011.
FOR FURTHER INFORMATION CONTACT: Stephen Shin, Attorney, or Benjamin K.
Olson, Counsel, Division of Consumer and Community Affairs, Board of
Governors of the Federal Reserve System, at (202) 452-3667 or 452-2412;
for users of Telecommunications Device for the Deaf (TDD) only, contact
(202) 263-4869.
SUPPLEMENTARY INFORMATION: The Board published a final rule in the
Federal Register of April 25, 2011 (76 FR 22948) (FR Doc. 2011-8843),
amending Regulation Z and the staff commentary to the regulation, in
order to clarify certain aspects of the rules that implement the Credit
Card Accountability Responsibility and Disclosure Act of 2009. As
published, the final rule inadvertently omits the revisions to
redesignated Sec. 226.58(b)(7) and the revised commentary to Sec.
226.55(b)(6). In addition, the published final rule misprints comment
51(b)(2)-1 and contains other typographical errors.
Accordingly, in the final rule, FR Doc. 2011-8843, published on
April 25, 2011, (76 FR 22948) make the following corrections:
PART 226--[CORRECTED]
Sec. 226.9 [Corrected]
0
1. On page 23000, in the third column, line 55, correct amendatory
instruction 7 to read as follows:
Section 226.9 is amended by adding paragraph (b)(3)(iii) and by
revising paragraphs (c)(2)(i)A), (c)(2)(ii), (c)(2)(iii),
(c)(2)(iv)(A)(1), (c)(2)(iv)(B), (c)(2)(iv)(D), (c)(2)(v)(B)(1) through
(3), (c)(2)(v)(C), and (c)(2)(v)(D).
Sec. 226.58 [Corrected]
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2. On page 23003, in the third column, line 48, correct amendatory
instruction 14.B. to read as follows:
B. Redesignating paragraphs (b)(4) through (7) as paragraphs (b)(5)
through (8), and revising redesignated paragraph (b)(7);
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3. On page 23004, in the first column, line 24, in Sec. 226.58,
correct paragraph (b) by adding paragraph (b)(7) to read as follows:
(7) Pricing information. For purposes of this section, ``pricing
information'' means the information listed in Sec. 226.6(b)(2)(i)
through (b)(2)(xii). Pricing information does not include temporary or
promotional rates and terms or rates and terms that apply only to
protected balances.
* * * * *
Supplement I to Part 226 [Corrected]
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4. On page 23016, in the first column, line 3, italicize the heading
``9(c) Change in terms.''
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5. On page 23021, in the third column, line 29, correct paragraph 1. of
51(b)(2) to read as follows:
1. Credit line request by joint accountholder aged 21 or older.
The requirement under Sec. 226.51(b)(2) that a cosigner, guarantor,
or joint accountholder for a credit card account opened pursuant to
Sec. 226.51(b)(1)(ii) must agree in writing to assume liability for
the increase before a credit line is increased, does not apply if
the cosigner, guarantor or joint accountholder who is at least 21
years old initiates the request for the increase.
0
6. On page 23034, in the first column, line 24, correct 55(b) by adding
55(b)(6) to read as follows:
55(b)(6) Servicemembers Civil Relief Act exception.
1. Rate, fee, or charge that does not exceed rate, fee, or
charge that applied before decrease. When a rate or a fee or charge
subject to Sec. 226.55 has been decreased pursuant to 50 U.S.C.
app. 527 or a similar federal or state statute or regulation, Sec.
226.55(b)(6) permits the card issuer to increase the rate, fee, or
charge once 50 U.S.C. app. 527 or the similar statute or regulation
no longer applies. However, Sec. 226.55(b)(6) prohibits the card
issuer from applying to any transactions that occurred prior to the
decrease a rate, fee, or charge that exceeds the rate, fee, or
charge that applied to those transactions prior to the decrease
(except to the extent permitted by one of the other exceptions in
Sec. 226.55(b)). For example, if a temporary rate applied prior to
a decrease in rate pursuant to 50 U.S.C. app. 527 and the temporary
rate expired during the period that 50 U.S.C. app. 527 applied to
the account, the card issuer may apply an increased rate once 50
U.S.C. app. 527 no longer applies to the extent consistent with
Sec. 226.55(b)(1). Similarly, if a variable rate applied prior to a
decrease in rate pursuant to 50 U.S.C. app. 527, the card issuer may
apply any increase in that variable rate once 50 U.S.C. app. 527 no
longer applies to the extent consistent with Sec. 226.55(b)(2).
2. Decreases in rates, fees, and charges to amounts consistent
with 50 U.S.C. app. 527 or similar statute or regulation. If a card
issuer deceases an annual percentage rate or a fee or charge subject
to Sec. 226.55 pursuant to 50 U.S.C. app. 527 or a similar federal
or state statute or regulation and if the card issuer also decreases
other rates, fees, or charges (such as the rate that applies to new
transactions) to amounts that are consistent with 50 U.S.C. app. 527
or a similar federal or state statute or regulation, the card issuer
may increase those rates, fees, and charges consistent with Sec.
226.55(b)(6).
3. Example. Assume that on December 31 of year one the annual
percentage rate that applies to a $5,000 balance on a credit card
account is a variable rate that is determined by adding a margin of
10 percentage points to a publicly-available index that is not under
the card issuer's control. The account is also subject to a monthly
maintenance fee of $10. On January 1 of year two, the card issuer
reduces the rate that applies to the $5,000 balance to a non-
variable rate of 6% and ceases to impose the $10 monthly maintenance
fee and other fees (including late payment fees) pursuant to 50
U.S.C. app. 527. The card issuer also decreases the rate that
applies to new transactions to 6%. During year two, the consumer
uses the account for $1,000 in new transactions. On January 1 of
year three, 50 U.S.C. app. 527 ceases to apply and the card issuer
provides a notice pursuant to Sec. 226.9(c) informing the consumer
that on February 15 of year three the variable rate determined using
the 10-point margin will apply to any remaining portion of the
$5,000 balance and to any remaining portion of the $1,000 balance.
The notice also states that the $10 monthly maintenance fee and
other fees (including late payment fees) will resume on February 15
of year three. Consistent with Sec. 226.9(c)(2)(iv)(B), the card
issuer is not required to provide a right to reject in these
[[Page 31222]]
circumstances. On February 15 of year three, Sec. 226.55(b)(6)
permits the card issuer to begin accruing interest on any remaining
portion of the $5,000 and $1,000 balances at the variable rate
determined using the 10-point margin and to resume imposing the $10
monthly maintenance fee and other fees (including late payment
fees).
By order of the Board of Governors of the Federal Reserve
System, acting through the Secretary under delegated authority, May
19, 2011.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 2011-12795 Filed 5-27-11; 8:45 am]
BILLING CODE 6210-01-P