(a) Inconsistent
disclosure requirements.
(1) Except as provided in paragraph (d)
of this section, State law requirements that are inconsistent with
the requirements contained in chapter 1 (General Provisions), chapter
2 (Credit Transactions), or chapter 3 (Credit Advertising) of the
Act and the implementing provisions of this part are preempted to
the extent of the inconsistency. A State law is inconsistent if it
requires a creditor to make disclosures or take actions that contradict
the requirements of the Federal law. A State law is contradictory
if it requires the use of the same term to represent a different amount
or a different meaning than the Federal law, or if it requires the
use of a term different from that required in the Federal law to describe
the same item. A creditor, State, or other interested party may request
the Bureau to determine whether a State law requirement is inconsistent.
After the Bureau determines that a State law is inconsistent, a creditor
may not make disclosures using the inconsistent term or form. A determination
as to whether a State law is inconsistent with the requirements of
sections 4 and 5 of RESPA (other than the RESPA section 5(c) requirements
regarding provision of a list of certified homeownership counselors)
and sections 1026.19(e) and (f), 1026.37, and 1026.38 shall be made
in accordance with this section and not 12 CFR 1024.13.
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(2) (i) State law requirements
are inconsistent with the requirements contained in sections 161 (Correction
of billing errors) or 162 (Regulation of credit reports) of the Act
and the implementing provisions of this part and are preempted if
they provide rights, responsibilities, or procedures for consumers
or creditors that are different from those required by the Federal
law. However, a state law that allows a consumer to inquire about
an open-end credit account and imposes on the creditor an obligation
to respond to such inquiry after the time allowed in the Federal law
for the consumer to submit written notice of a billing error shall
not be preempted in any situation where the time period for making
written notice under this part has expired. If a creditor gives written
notice of a consumer’s rights under such state law, the notice
shall state that reliance on the longer time period available under
state law may result in the loss of important rights that could be
preserved by acting more promptly under Federal law; it shall also
explain that the state law provisions apply only after expiration
of the time period for submitting a proper written notice of a billing
error under the Federal law. If the state disclosures are made on
the same side of a page as the required Federal disclosures, the state
disclosures shall appear under a demarcation line below the Federal
disclosures, and the Federal disclosures shall be identified by a
heading indicating that they are made in compliance with Federal law.
(ii) State law requirements are
inconsistent with the requirements contained in chapter 4 (Credit
billing) of the Act (other than section 161 or 162) and the implementing
provisions of this part and are preempted if the creditor cannot comply
with state law without violating Federal law.
(iii) A state may request the Bureau
to determine whether its law is inconsistent with chapter 4 of the
Act and its implementing provisions.
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(b) Equivalent disclosure requirements. If the Bureau determines that a disclosure required by state law
(other than a requirement relating to the finance charge, annual percentage
rate, or the disclosures required under section 1026.32) is substantially
the same in meaning as a disclosure required under the Act or this
part, creditors in that state may make the state disclosure in lieu
of the Federal disclosure. A creditor, state, or other interested
party may request the Bureau to determine whether a state disclosure
is substantially the same in meaning as a Federal disclosure.
(c) Request for determination. The
procedures under which a request for a determination may be made under
this section are set forth in Appendix A.
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(d) Special rule for credit and charge cards. State law requirements
relating to the disclosure of credit information in any credit or
charge card application or solicitation that is subject to the requirements
of section 127(c) of chapter 2 of the Act (section 1026.60 of the
regulation) or in any renewal notice for a credit or charge card that
is subject to the requirements of section 127(d) of chapter 2 of the
Act (section 1026.9(e) of the regulation) are preempted. State laws
relating to the enforcement of section 127(c) and (d) of the Act are
not preempted.
