Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
Fed issues CARD Act clarifications dates
WASHINGTON (10/20/10)--Credit unions will want to note a proposal just issued by the Federal Reserve Board, one which is intended to help card issuers more fully understand their compliance obligations under changes to Regulation Z. The Credit Card Accountability Responsibility and Disclosure (CARD) Act, enacted in May 2009, made a series of changes to credit card rules, which were implemented under Reg Z Truth in Lending rules. This new Fed proposal is intended to clarify the Fed’s CARD Act rules. Specifically, the proposed clarifications state:
* Promotional programs that waive interest charges for a specified period of time are subject to the same protections as promotional programs that apply a reduced rate for a specified period. For example, a card issuer that offers to waive interest charges for six months would be prohibited from revoking the waiver and charging interest during the six-month period unless the account becomes more than 60 days delinquent. * Application and similar fees that a consumer is required to pay before a credit card account is opened are covered by the same limitations as fees charged during the first year after the account is opened. Because the total amount of these fees cannot exceed 25% of the account's initial credit limit, a card issuer that, for example, charges a $75 fee to apply for a credit card with a $400 credit limit generally would not be permitted to charge more than $25 in additional fees during the first year after account opening. * When evaluating a consumer's ability to make the required payments before opening a new credit card account or increasing the credit limit on an existing account, card issuers must consider information regarding the consumer's independent income, rather than his or her household income.
The Fed will be publishing its proposal (see resource link) in the Federal Register, likely within the next week. Comments on the proposal must be submitted within 60 days after its publication. The Fed on Tuesday also made official an interim final rule that pushed back the compliance date for gift card-related disclosure rules until Jan. 31, 2011. Those rules were previously slated to come into effect on Aug. 22. For that Fed release, use the resource link.
Other Resources

RSS





print
News Now LiveWire
What role are #creditunions playing in @gatesfoundation's 2030 vision of financial services? Read #NewsNow Monday
1 day ago
Consumers fear inaccurate info lingers on credit reports, says @FTC study Read @CUNA's News Now: http://t.co/RzNLMnaROO
57 minutes ago
@PCUA has formed a @LinkedIn networking group for former bankers turned #creditunion employees.
59 minutes ago
.@politico reports Democrats haven't picked the city yet, but their 2016 convention will be held the week of July 25.
1 hour ago
.@cuna, @DCUC_HQ urge @CFPB to exempt #CUs from changes to Military Lending Act rules cuz CUs aren't part of the targeted problem. NN Monday
3 hours ago