District Circular Letters

June 02, 2000

BANKING SUPERVISION AND REGULATION:
REQUEST FOR COMMENT--
REGULATION Z: REVISION OF DISCLOSURE
REQUIREMENTS FOR CREDIT AND CHARGE CARD
SOLICITATIONS

To State Member Banks, Bank
Holding Companies, U.S. Branches and
Agencies of Foreign Banks,
and Others Concerned
in the Twelfth Federal Reserve District

Proposed Amendments to Regulation Z, Truth in Lending (R-1070)

The Federal Reserve Board has proposed amendments to Regulation Z, Truth in Lending, which would revise the disclosure requirements for credit and charge card solicitations and applications.

Comment is requested by July 18, 2000. Comments may now be sent electronically to regs.comments@federalreserve.gov.

Under Regulation Z, direct mail and other applications and solicitations to open card accounts must disclose the annual percentage rate (APR) and other cost information, generally in the form of a table. The proposed amendments are intended to make the disclosure more noticeable and easier to understand.

The APR for purchase transactions would be subject to a minimum type-size requirement. The requirement that disclosures be "clear and conspicuous" would be more strictly construed. The proposed revisions also would provide additional guidance on the requirement that the table is prominently located, and on the level of detail about cost information required or permitted in the table.

Copies

Copies of the Board's notice (Docket R-1070) are available from our Corporate Services Department. To request copies to be sent by mail, please call (415) 974-2060. To request copies to be sent via fax, please call (415) 974-3333, and specify document number 4214.

Additional Information

For additional information about the examination procedures, please contact our Banking Supervision and Regulation Department, at (415) 974-2967 or (415) 974-2966.

FEDERAL RESERVE BANK OF SAN FRANCISCO