(i) Highlighting. In the table, any annual
percentage rate required to be disclosed pursuant to paragraph (b)(2)(i)
of this section; any introductory rate permitted to be disclosed pursuant
to paragraph (b)(2)(i)(B) or required to be disclosed under paragraph
(b)(2)(i)(F) of this section, any rate that will apply after a premium
initial rate expires permitted to be disclosed pursuant to paragraph (b)(2)(i)(C)
or required to be disclosed pursuant to paragraph (b)(2)(i)(F), and
any fee or percentage amounts or maximum limits on fee amounts disclosed
pursuant to paragraphs (b)(2)(ii), (b)(2)(iv), (b)(2)(vii) through
(b)(2)(xii) of this section must be disclosed in bold text. However,
bold text shall not be used for: The amount of any periodic fee disclosed
pursuant to paragraph (b)(2) of this section that is not an annualized
amount; and other annual percentage rates or fee amounts disclosed
in the table.
(ii) Location. Only the information required
or permitted by paragraphs (b)(2)(i) through (v) (except for (b)(2)(i)(D)(2)) and (b)(2)(vii) through (xiv) of this section shall be in
the table. Disclosures required by paragraphs (b)(2)(i)(D)(2), (b)(2)(i)(D)(3), (b)(2)(vi), and (b)(2)(xv) of this section
shall be placed directly below the table. Disclosures required by
paragraphs (b)(3) through (5) of this section that are not otherwise
required to be in the table and other information may be presented
with the account agreement or account-opening disclosure statement,
provided such information appears outside the required table.
(iii) Fees that vary by state. Creditors that
impose fees referred to in paragraphs (b)(2)(vii) through (b)(2)(xi)
of this section that vary by state and that provide the disclosures
required by paragraph (b) of this section in person at the time the
open-end (not home-secured) plan is established in connection with
financing the purchase of goods or services may, at the creditor’s
option, disclose in the account-opening table the specific fee applicable
to the consumer’s account, or the range of the fees, if the disclosure
includes a statement that the amount of the fee varies by state and
refers the consumer to the account agreement or other disclosure provided
with the account-opening table where the amount of the fee applicable
to the consumer’s account is disclosed. A creditor may not list fees
for multiple states in the account-opening summary table.
(iv) Fees based on a percentage. If the amount of any fee required
to be disclosed under this section is determined on the basis of a
percentage of another amount, the percentage used and the identification
of the amount against which the percentage is applied may be disclosed
instead of the amount of the fee.
(i) Annual
percentage rate. Each periodic rate that may be used to compute
the finance charge on an outstanding balance for purchases, a cash
advance, or a balance transfer, expressed as an annual percentage
rate (as determined by section 226.14(b)). When more than one rate
applies for a category of transactions, the range of balances to which
each rate is applicable shall also be disclosed. The annual percentage
rate for purchases disclosed pursuant to this paragraph shall be in
at least 16-point type, except for the following: A penalty rate that
may apply upon the occurrence of one or more specific events.
(A) Variable-rate information. If a rate disclosed
under paragraph (b)(2)(i) of this section is a variable rate, the
creditor shall also disclose the fact that the rate may vary and how
the rate is determined. In describing how the applicable rate will
be determined, the creditor must identify the type of index or formula
that is used in setting the rate. The value of the index and the amount
of the margin that are used to calculate the variable rate shall not
be disclosed in the table. A disclosure of any applicable limitations
on rate increases or decreases shall not be included in the table.
(B) Discounted initial rates. If the initial rate is an introductory
rate, as that term is defined in section 226.16(g)(2)(ii), the creditor
must disclose the rate that would otherwise apply to the account pursuant
to paragraph (b)(2)(i) of this section. Where the rate is not tied
to an index or formula, the creditor must disclose the rate that will
apply after the introductory rate expires. In a variable-rate account,
the creditor must disclose a rate based on the applicable index or
formula in accordance with the accuracy requirements of paragraph
(b)(4)(ii)(G) of this section. Except as provided in paragraph (b)(2)(i)(F)
of this section, the creditor is not required to, but may disclose
in the table the introductory rate along with the rate that would
otherwise apply to the account if the creditor also discloses the
time period during which the introductory rate will remain in effect,
and uses the term “introductory” or “intro” in immediate proximity
to the introductory rate.
(C) Premium initial rate. If the initial
rate is temporary and is higher than the rate that will apply after
the temporary rate expires, the creditor must disclose the premium
initial rate pursuant to paragraph (b)(2)(i) of this section. Consistent
with paragraph (b)(2)(i) of this section, the premium initial rate
for purchases must be in at least 16-point type. Except as provided
in paragraph (b)(2)(i)(F) of this section, the creditor is not required
to, but may disclose in the table the rate that will apply after the
premium initial rate expires if the creditor also discloses the time
period during which the premium initial rate will remain in effect.
If the creditor also discloses in the table the rate that will apply
after the premium initial rate for purchases expires, that rate also
must be in at least 16-point type.
(D) Penalty rates.
(1) In general. Except as provided in paragraph
(b)(2)(i)(D)(2) and (b)(2)(i)(D)(3) of this section, if a rate may
increase as a penalty for one or more events specified in the account
agreement, such as a late payment or an extension of credit that exceeds
the credit limit, the creditor must disclose pursuant to paragraph
(b)(2)(i) of this section the increased rate that may apply, a brief
description of the event or events that may result in the increased
rate, and a brief description of how long the increased rate will
remain in effect. If more than one penalty rate may apply, the creditor
at its option may disclose the highest rate that could apply, instead
of disclosing the specific rates or the range of rates that could
apply.
(2) Introductory rates. If the creditor discloses
in the table an introductory rate, as that term is defined in section
226.16(g)(2)(ii), creditors must briefly disclose directly beneath
the table the circumstances under which the introductory rate may
be revoked, and the rate that will apply after the introductory rate
is revoked.
(3) Employee preferential rates. If
a creditor discloses in the table a preferential annual percentage
rate for which only employees of the creditor, employees of a third
party, or other individuals with similar affiliations with the creditor
or third party, such as executive officers, directors, or principal
shareholders are eligible, the creditor must briefly disclose directly
beneath the table the circumstances under which such preferential
rate may be revoked, and the rate that will apply after such preferential
rate is revoked.
(E) Point of sale
where APRs vary by state or based on creditworthiness. Creditors
imposing annual percentage rates that vary by state or based on the
consumer’s creditworthiness and providing the disclosures required
by paragraph (b) of this section in person at the time the open-end
(not home-secured) plan is established in connection
with financing the purchase of goods or services may, at the creditor’s
option, disclose pursuant to paragraph (b)(2)(i) of this section in
the account-opening table:
(1) The specific annual percentage rate applicable to the
consumer’s account; or
(2) The range of the annual percentage rates, if the disclosure
includes a statement that the annual percentage rate varies by state
or will be determined based on the consumer’s creditworthiness and
refers the consumer to the account agreement or other disclosure
provided with the account-opening table where the annual percentage
rate applicable to the consumer’s account is disclosed. A creditor
may not list annual percentage rates for multiple states in the account-opening
table.
(F) Credit card accounts under an open-end (not
home-secured) consumer credit plan. Notwithstanding paragraphs
(b)(2)(i)(B) and (b)(2)(i)(C) of this section, for credit card accounts
under an open-end (not home-secured) plan, issuers must disclose in
the table—
(1) Any introductory
rate as that term is defined in section 226.16(g)(2)(ii) that would
apply to the account, consistent with the requirements of paragraph
(b)(2)(i)(B) of this section, and
(2) Any rate that would apply upon
the expiration of a premium initial rate, consistent with the requirements
of paragraph (b)(2)(i)(C) of this section.
(ii) Fees for issuance or availability.
(A) Any annual or other periodic fee that may be imposed for the
issuance or availability of an open-end plan, including any fee based
on account activity or inactivity; how frequently it will be imposed;
and the annualized amount of the fee.
(B) Any non-periodic fee that relates to opening
the plan. A creditor must disclose that the fee is a one-time fee.
(iii) Fixed finance charge; minimum interest charge. Any fixed finance charge and a brief description of the charge.
Any minimum interest charge if it exceeds $1.00 that could be imposed
during a billing cycle, and a brief description of the charge. The
$1.00 threshold amount shall be adjusted periodically by the Board
to reflect changes in the Consumer Price Index. The Board shall calculate
each year a price level adjusted minimum interest charge using the
Consumer Price Index in effect on the June 1 of that year. When the
cumulative change in the adjusted minimum value derived from applying
the annual Consumer Price level to the current minimum interest charge
threshold has risen by a whole dollar, the minimum interest charge
will be increased by $1.00. The creditor may, at its option, disclose
in the table minimum interest charges below this threshold.
(iv) Transaction charges. Any transaction charge imposed by the creditor
for use of the open-end plan for purchases.
(v) Grace
period. The date by which or the period within which any credit
extended may be repaid without incurring a finance charge due to a
periodic interest rate and any conditions on the availability of the
grace period. If no grace period is provided, that fact must be disclosed.
If the length of the grace period varies, the creditor may disclose
the range of days, the minimum number of days, or the average number
of the days in the grace period, if the disclosure is identified as
a range, minimum, or average. In disclosing in the tabular format
a grace period that applies to all features on the account, the phrase
“How to Avoid Paying Interest” shall be used as the heading for the
row describing the grace period. If a grace period is not offered
on all features of the account, in disclosing this fact in the tabular
format, the phrase “Paying Interest” shall be used as the heading
for the row describing this fact.
(vi) Balance
computation method. The name of the balance computation method
listed in section 226.5a(g) that is used to determine the balance
on which the finance charge is computed for each feature, or an explanation
of the method used if it is not listed, along with a statement that
an explanation of the method(s) required by paragraph (b)(4)(i)(D)
of this section is provided with the account-opening disclosures.
In determining which balance computation method to disclose, the creditor
shall assume that credit extended will not be repaid within any grace
period, if any.
(vii) Cash advance fee. Any fee imposed for an extension
of credit in the form of cash or its equivalent.
(viii) Late
payment fee. Any fee imposed for a late payment.
(ix) Over-the-limit fee. Any fee imposed for
exceeding a credit limit.
(x) Balance
transfer fee. Any fee imposed to transfer an outstanding balance.
(xi) Returned-payment fee. Any fee imposed by
the creditor for a returned payment.
(xii) Required
insurance, debt cancellation or debt suspension coverage.
(A) A fee for insurance described in section 226.4(b)(7) or debt
cancellation or suspension coverage described in section 226.4(b)(10),
if the insurance, or debt cancellation or suspension coverage is required
as part of the plan; and
(B) A cross reference to any additional information provided about
the insurance or coverage, as applicable.
(xiii) Available credit. If a creditor requires
fees for the issuance or availability of credit described in paragraph
(b)(2)(ii) of this section, or requires a security deposit for such
credit, and the total amount of those required fees and/or security
deposit that will be imposed and charged to the account when the account
is opened is 15 percent or more of the minimum credit limit for the
plan, a creditor must disclose the available credit remaining after
these fees or security deposit are debited to the account. The determination
whether the 15 percent threshold is met must be based on the minimum
credit limit for the plan. However, the disclosure provided under
this paragraph must be based on the actual initial credit limit provided
on the account. In determining whether the 15 percent threshold test
is met, the creditor must only consider fees for issuance or availability
of credit, or a security deposit, that are required. If fees for issuance
or availability are optional, these fees should not be considered
in determining whether the disclosure must be given. Nonetheless,
if the 15 percent threshold test is met, the creditor in providing
the disclosure must disclose the amount of available credit calculated
by excluding those optional fees, and the available credit including
those optional fees. The creditor shall also disclose that the consumer
has the right to reject the plan and not be obligated to pay those
fees or any other fee or charges until the consumer has used the account
or made a payment on the account after receiving a periodic statement.
This paragraph does not apply with respect to fees or security deposits
that are not debited to the account.
(xiv) Website
reference. For issuers of credit cards that are not charge cards,
a reference to the Web site established by the Board and a statement
that consumers may obtain on the Web site information about shopping
for and using credit cards.
(xv) Billing
error rights reference. A statement that information about consumers’
right to dispute transactions is included in the account-opening disclosures.
(i) For charges imposed as part of an
open-end (not home-secured) plan, the circumstances under which the
charge may be imposed, including the amount of the charge or an explanation
of how the charge is determined. For finance charges, a statement
of when the charge begins to accrue and an explanation of whether
or not any time period exists within which any credit that has been
extended may be repaid without incurring the charge. If such a time
period is provided, a creditor may, at its option and without disclosure,
elect not to impose a finance charge when payment is received after
the time period expires.
(ii) Charges imposed as part of the
plan are:
(A) Finance charges identified under section 226.4(a) and section
226.4(b).
(B) Charges
resulting from the consumer’s failure to use the plan as agreed, except
amounts payable for collection activity after default, attorney’s
fees whether or not automatically imposed, and post-judgment interest
rates permitted by law.
(C) Taxes imposed on the credit transaction by a state or other governmental
body, such as documentary stamp taxes on cash advances.
(D) Charges for which the payment,
or nonpayment, affect the consumer’s access to the plan, the duration
of the plan, the amount of credit extended, the period for which credit
is extended, or the timing or method of billing or payment.
(E) Charges imposed for terminating
a plan.
(F) Charges for
voluntary credit insurance, debt cancellation or debt suspension.
(iii)
Charges that are not imposed as part of the plan include:
(A) Charges imposed
on a cardholder by an institution other than the card issuer for the
use of the other institution’s ATM in a shared or interchange system.
(B) A charge for a package
of services that includes an open-end credit feature, if the fee is
required whether or not the open-end credit feature is included and
the non-credit services are not merely incidental to the credit feature.
(C) Charges under section
226.4(e) disclosed as specified.
(i) For each
periodic rate that may be used to calculate interest:
(A) Rates. The rate, expressed as a periodic
rate and a corresponding annual percentage rate.
(B) Range of balances. The range of balances to which the rate is applicable; however,
a creditor is not required to adjust the range of balances disclosure
to reflect the balance below which only a minimum charge applies.
(C) Type of transaction. The type of transaction to which the rate
applies, if different rates apply to different types of transactions.
(D) Balance computation method. An explanation of the method used
to determine the balance to which the rate is applied.
(ii) Variable-rate accounts. For interest rate
changes that are tied to increases in an index or formula (variable-rate
accounts) specifically set forth in the account agreement:
(A) The fact
that the annual percentage rate may increase.
(B) How the rate is determined, including
the margin.
(C) The circumstances
under which the rate may increase.
(D) The frequency with which the rate may
increase.
(E) Any limitation
on the amount the rate may change.
(F) The effect(s) of an increase.
(G) Except as specified in paragraph
(b)(4)(ii)(H) of this section, a rate is accurate if it is a rate
as of a specified date and this rate was in effect within the last
30 days before the disclosures are provided.
(H) Creditors imposing annual percentage rates
that vary according to an index that is not under the creditor’s control
that provide the disclosures required by paragraph (b) of this section
in person at the time the open-end (not home-secured) plan is established
in connection with financing the purchase of goods or services may
disclose in the table a rate, or range of rates to the extent permitted
by section 226.6(b)(2)(i)(E), that was in effect within the last 90
days before the disclosures are provided, along with a reference directing
the consumer to the account agreement or other disclosure provided
with the account-opening table where an annual percentage rate applicable
to the consumer’s account in effect within the last 30 days before
the disclosures are provided is disclosed.
(iii) Rate changes not due to index or formula. For interest rate changes that are specifically set forth in the
account agreement and not tied to increases in an index or formula:
(A) The initial rate (expressed as a periodic rate and a corresponding
annual percentage rate) required under paragraph (b)(4)(i)(A) of this
section.
(B) How long the
initial rate will remain in effect and the specific events that cause
the initial rate to change.
(C) The rate (expressed as a periodic rate and a corresponding annual
percentage rate) that will apply when the initial rate is no longer
in effect and any limitation on the time period the new rate will
remain in effect.
(D) The
balances to which the new rate will apply.
(E) The balances to which the current rate
at the time of the change will apply.
