(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 1026.14(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 1026.16(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 1026.16(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 1026.16(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 Bureau
to reflect changes in the Consumer Price Index. The Bureau 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 1026.60(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 1026.4(b)(7) or debt
cancellation or suspension coverage described in section 1026.4(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) Web site reference. For issuers of credit
cards that are not charge cards, a reference to the Web site established
by the Bureau and a statement that consumers may obtain on the Web
site information about shopping for and using credit cards. Until
January 1, 2013, issuers may substitute for this reference a reference
to the Web site established by the Board of Governors of the Federal
Reserve System.
(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
1026.4(a) and section 1026.4(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 1026.4(e) disclosed as specified.
(D) With regard to a covered separate credit
feature and an asset feature on a prepaid account that are both accessible
by a hybrid prepaid-credit card as defined in section 1026.61, any
fee or charge imposed on the asset feature of the prepaid account
to the extent that the amount of the fee or charge does not exceed
comparable fees or charges imposed on prepaid accounts in the same
prepaid account program that do not have a covered separate credit
feature accessible by a hybrid prepaid-credit card.
(E) With regard to a non-covered separate
credit feature accessible by a prepaid card as defined in section
1026.61, any fee or charge imposed on the asset feature of the prepaid
account.
(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 1026.6(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.
