A really, really brief overview

TRUTH IN LENDING

Full and fair disclosure of credit terms

Most commonly violated regulation

Has evolved beyond being a disclosure regulation

Enormous Scope

INTRODUCTION

Non-consumer credit Amount financed is more than $50,000 (except real

property)Certain student loans

EXEMPTIONS

Annual Percentage Rate

Business DayClosed-end Credit

Open-end Credit

Finance Charge

KEY DEFINITIONS

OPEN-END CREDIT

At applicationBefore first

transaction or at consummation

After consummation

TIMING OF OPEN-END DISCLOSURES

General Clear, conspicuous, in writing, in a form the member may

keep Model forms required

Initial Disclosures Finance charge Other charges Voluntary Credit Insurance, Debt Cancellation, or Debt

Suspension Premiums Security interests Statement of billing rights

DISCLOSURES

Plan termination or change

Payment informationNegative amortizationTransaction

requirementsTax implicationsAPR only includes

interestVariable rate

disclosure and example

HELOC DISCLOSURES

APRsAnnual or other periodic

feesFixed fi nance chargesTransaction chargesGrace periodBalance computation

method FeesRequired insurance, debt

cancellation or debt suspension

FRB WebsiteBilling error rights

reference

TABLE DISCLOSURES (NON-HELOC)

Give required disclosures

Give rescission notice

Delay line access and deed recording for three business days

RESCISSION

Previous balance Identification of transactionsCreditsPeriodic ratesBalance on which finance charge computedAmount of finance charge and other chargesGrace periodAddress for notice of billing errorsClosing date of billing cycleNew balance

PERIODIC STATEMENT – ALL ACCOUNTS

Formatting requirementsChange-in-terms and increased penalty rate Deferred interest or similar transactions

PERIODIC STATEMENT – NON-HELOC

Due date and late payment costs

Repayment disclosures

PERIODIC STATEMENT – CREDIT CARDS

15 days for HELOCs45 days for non-HELOC accounts (formatting

requirements apply)

CHANGE IN TERMS

Limitations on increasing APRs, fees, and charges

Opt-in for over-the-limit charges

Fee limitations Special rules for marketing

to college students Special rules for handling

payments Evaluation of consumer’s

ability to pay Allocation of payments Internet posting of credit

card agreements Reevaluation of rate

increases

CARD ACT REQUIREMENTS

Clear and conspicuous

LegibleReasonably

understandableActually available

terms

MARKETING AND ADVERTISING

A description of the circumstances under which a finance charge will be imposed, or how it is to be determined

APRPeriodic rateGrace periodThe amounts of any other charges Security InterestBilling RightsHome equity plan information

TRIGGER TERMS

Any minimum, fixed, transaction, activity, or similar charge

Any periodic rate that may apply, expressed as an annual percentage rate

Variable rate informationMembership or participation fees

ADDITIONAL DISCLOSURES REQUIRED

APRs referred to as “fixed” unless a time period is also mentioned

“Free Money”Promotional rates

must list a time period

MISLEADING TERMS

FeesThe periodic rate, if any, used to compute the finance

charge, expressed as an annual percentage rate.The maximum annual percentage rate that may be

charged if it is a variable-rate plan.Special variable rate information if the ad contains an

introductory rate not based on the index and margin used to determine future rate changes

Balloon Payment informationTax ImplicationsPromotional Rate informationAlternative Disclosures for Television or Radio

Advertisements

HELOC ADDITIONAL DISCLOSURES

CLOSED-END CREDIT

Clearly and conspicuously

In writingIn a form that the

consumer may keepGrouped togetherSegregated from

everything elseBefore consummation

of a loanEarly disclosures

required for certain mortgage loans

FORM OF DISCLOSURES

Identity of the creditorThe amount financedItemization of the

Amount FinancedFinance ChargeAnnual Percentage

RateVariable-Rate

InformationPayment ScheduleTotal of paymentsTotal sales price

Demand featurePrepaymentLate paymentSecurity interestCertain security

interest chargesContract referenceAssumption policyRequired depositMaximum interest

disclosure for variable-rate mortgage loans

CONTENTS

Reverse mortgage loansHigh-rate, high-fee mortgage loans (Section 32 loans)Mortgage Disclosure Improvement Act (rules for

mortgages)Notice of purchase, assignment or transfer

(mortgages)Loan originator compensation and steering

(mortgages)Private education loans

SPECIAL DISCLOSURES

Give required disclosures

Give rescission notice

Delay loan funding and deed recording for three business days

RESCISSION

Terms advertised must be actually availableThe “annual percentage rate” (or APR) must be used

whenever a rate is disclosedDisclosures must be legible and reasonably

understandableTRIGGER TERMS:The amount or percentage of any down paymentThe number of payments or the period of repaymentThe amount of any paymentThe amount of any finance chargedThe amounts of any other charges you mightThe fact that the credit union will take a security

interest in any asset

MARKETING AND ADVERTISING

The amount or percentage of the down paymentThe terms of repaymentThe “annual percentage rate,” using that termFor an APR that may be increased after

consummation, a statement to that eff ect.

ADDITIONAL DISCLOSURES