District Circular Letters
April 8, 1998
REGULATION Z:
OFFICIAL STAFF COMMENTARY
REGULATION B:
AMENDMENT OF FORMS
To Member and Nonmember Banks
and Others Concerned
in the Twelfth Federal Reserve District
Final Revisions to Official Staff Commentary (Docket R-0992)
The Federal Reserve Board is publishing revisions to its Regulation
Z (Truth in Lending) official staff commentary, which applies and interprets
the requirements of the Regulation.
The revisions became effective March 31, 1998. Compliance
is optional until October 1, 1998.
The revisions provide guidance for open-end credit plans that increase
rates triggered by late payments or by exceeding credit limits and that
have deferred payment features. Proposed changes on how creditors may
determine whether credit is an open-end plan or a closed-end transaction
have been substantially modified in the final revisions.
In addition, the update discusses issues such as the treatment of annuity
costs in reverse mortgage transactions and transaction fees imposed on
checking accounts with overdraft protection.
Final Amendment of Model Forms (Docket R-0978)
The Federal Reserve Board is amending some model forms in its Regulation
B, Equal Credit Opportunity, to reflect changes to disclosures required
by recent amendments to the Fair Credit Reporting Act.
Statutory changes require that additional disclosures be given to a
consumer who is denied credit based on information from an affiliate or
from a consumer reporting agency.
The new model forms go into effect on April 30, 1998.
Copies
Copies of the Board's notices (Docket R-0992
and Docket R-0978)
are available from our Corporate Services Department. To request
copies to be sent via mail, please call (415) 974-2748.
To request copies to be sent via fax, please call (415) 974-3333,
and specify document numbers 4178 and 4163,
respectively.
Additional Information
For additional information regarding these matters, please contact our
Banking Supervision and Regulation Department, at (415) 974- 2967
[for Regulation Z] or (415) 974-2977 [for Regulation
B].
FEDERAL RESERVE BANK OF SAN FRANCISCO
|
