The creditor shall furnish the
consumer with a periodic statement that discloses the following items,
to the extent applicable:
(1) Previous
balance. The account balance outstanding at the beginning of
the billing cycle.
(2) Identification of transactions. An identification of each credit transaction in accordance with
section 226.8.
(3) Credits. Any credit to the account during
the billing cycle, including the amount and the date of crediting.
The date need not be provided if a delay in accounting does not result
in any finance or other charge.
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(4) Periodic
rates.
(i) Except as provided in paragraph
(a)(4)(ii) of this section, each periodic rate that may be used to
compute the finance charge, the range of balances to which it is applicable,
14 and the corresponding annual percentage rate.
15 If no finance charge is imposed when the outstanding balance
is less than a certain amount, the creditor is not required to disclose
that fact, or the balance below which no finance charge will be imposed.
If different
periodic rates apply to different types of transactions, the types
of transactions to which the periodic rates apply shall also be disclosed.
For variable-rate plans, the fact that the periodic rate(s) may vary.
(ii) Exception. An annual percentage rate that
differs from the rate that would otherwise apply and is offered only
for a promotional period need not be disclosed except in periods in
which the offered rate is actually applied.
(5) Balance on which finance charge computed. The amount of the
balance to which a periodic rate was applied and an explanation of
how that balance was determined. When a balance is determined without
first deducting all credits and payments made during the billing cycle,
the fact and the amount of the credits and payments shall be disclosed.
(6) Amount of finance charge and other charges. Creditors may comply with paragraphs (a)(6) of this section, or
with paragraph (b)(6) of this section, at their option.
(i) Finance charges. The amount of any finance
charge debited or added to the account during the billing cycle, using
the term finance charge. The components of the finance charge shall
be individually itemized and identified to show the amount(s) due
to the application of any periodic rates and the amounts(s) of any
other type of finance charge. If there is more than one periodic rate,
the amount of the finance charge attributable to each rate need not
be separately itemized and identified.
(ii) Other
charges. The amounts, itemized and identified by type, of any
charges other than finance charges debited to the account during the
billing cycle.
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(7) Annual percentage
rate. At a creditor’s option, when a finance charge is imposed
during the billing cycle, the annual percentage rate(s) determined
under Section 226.14(c) using the term annual percentage rate.
(8) Grace period. The date by which or the
time period within which the new balance or any portion of the new
balance must be paid to avoid additional finance charges. If such
a time period is provided, a creditor may, at its option and without
disclosure, impose no finance charge if payment is received after
the time period’s expiration.
(9) Address for
notice of billing errors. The address to be used for notice of
billing errors. Alternatively, the address may be provided on the
billing rights statement permitted by section 226.9(a)(2).
(10) Closing date of billing cycle; new balance. The closing date
of the billing cycle and the account balance outstanding on that date.
(1) Previous
balance. The account balance outstanding at the beginning of
the billing cycle.
(2) Identification of transactions. An identification of each credit transaction in accordance with
section 226.8.
(3) Credits. Any credit to the account during
the billing cycle, including the amount and the date of crediting.
The date need not be provided if a delay in crediting does not result
in any finance or other charge.
(4) Periodic
rates.
(i) Except as provided in paragraph
(b)(4)(ii) of this section, each periodic rate that may be used to
compute the interest charge expressed as an annual percentage rate
and using the term Annual Percentage Rate, along with the range
of balances to which it is applicable. If no interest charge is imposed
when the outstanding balance is less than a certain amount, the creditor
is not required to disclose that fact, or the balance below which
no interest charge will be imposed. The types of transactions to which
the periodic rates apply shall also be disclosed. For variable-rate
plans, the fact that the annual percentage rate may vary.
(ii) Exception. A promotional rate, as that
term is defined in section 226.16(g)(2)(i), is required to be disclosed
only in periods in which the offered rate is actually applied.
(5) Balance on which finance charge computed. The amount of the balance to which a periodic rate was applied and
an explanation of how that balance was determined, using the term Balance Subject to Interest Rate. When a balance is determined
without first deducting all credits and payments made during the billing
cycle, the fact and the amount of the credits and payments shall be
disclosed. As an alternative to providing an explanation of how the
balance was determined, a creditor that uses a balance computation
method identified in section 226.5a(g) may, at the creditor’s option,
identify the name of the balance computation method and provide a
toll-free telephone number where consumers may obtain from the creditor
more information about the balance computation method and how resulting
interest charges were determined. If the method used is not identified
in section 226.5a(g), the creditor shall provide a brief explanation
of the method used.
(6) Charges imposed.
(i) The amounts of any charges imposed
as part of a plan as stated in section 226.6(b)(3), grouped together,
in proximity to transactions identified under paragraph (b)(2) of
this section, substantially similar to Sample G-18(A) in appendix
G to this part.
(ii) Interest. Finance charges attributable
to periodic interest rates, using the term Interest Charge, must be
grouped together under the heading Interest Charged, itemized
and totaled by type of transaction, and a total of finance charges
attributable to periodic interest rates, using the term Total Interest,
must be disclosed for the statement period and calendar year to date,
using a format substantially similar to Sample G-18(A) in appendix
G to this part.
(iii) Fees. Charges imposed as part
of the plan other than charges attributable to periodic interest rates
must be grouped together under the heading Fees, identified consistent
with the feature or type, and itemized, and a total of charges, using
the term Fees, must be disclosed for the statement period and calendar
year to date, using a format substantially similar to Sample G-18(A)
in appendix G to this part.
(7) Change-in-terms
and increased penalty rate summary for open-end (not home-secured)
plans. Creditors that provide a change-in-terms notice required
by section 226.9(c), or a rate increase notice required by section
226.9(g), on or with the periodic statement, must disclose the information
in sections 226.9(c)(2)(iv)(A) and (c)(2)(iv)(B) (if applicable) or
section 226.9(g)(3)(i) on the periodic statement in accordance with
the format requirements in section 226.9(c)(2)(iv)(D), and section
226.9(g)(3)(ii). See Forms G-18(F) and G-18(G) in appendix G to this
part.
(8) Grace period. The date by which or the
time period within which the new balance or any portion of the new
balance must be paid to avoid additional finance charges. If such
a time period is provided, a creditor may, at its option and without
disclosure, impose no finance charge if payment is received after
the time period’s expiration.
(9) Address for
notice of billing errors. The address to be used for notice of
billing errors. Alternatively, the address may be provided on the
billing rights statement permitted by section 226.9(a)(2).
(10) Closing date of billing cycle; new balance. The closing date
of the billing cycle and the account balance outstanding on that date.
The new balance must be disclosed in accordance with the format requirements
of paragraph (b)(13) of this section.
(11) Due date;
late payment costs.
(i) Except as provided in paragraph
(b)(11)(ii) of this section and in accordance with the format requirements
in paragraph (b)(13) of this section, for a credit card account under
an open-end (not home-secured) consumer credit plan, a card issuer
must provide on each periodic statement:
(A) The due date for a payment.
The due date disclosed pursuant to this paragraph shall be the same
day of the month for each billing cycle.
(B) The amount of any late payment fee and
any increased periodic rate(s) (expressed as an annual percentage
rate(s)) that may be imposed on the account as a result of a late
payment. If a range of late payment fees may be assessed, the card
issuer may state the range of fees, or the highest fee and an indication
that the fee imposed could be lower. If the rate may be increased
for more than one feature or balance, the card issuer may state the
range of rates or the highest rate that could apply and at the issuer’s
option an indication that the rate imposed could be lower.
(ii) Exception. The requirements of paragraph
(b)(11)(i) of this section do not apply to the following:
(A) Periodic statements
provided solely for charge card accounts; and
(B) Periodic statements provided for a charged-off
account where payment of the entire account balance is due immediately.
(12) Repayment disclosures.
(i) In general. Except as provided in paragraphs
(b)(12)(ii) and (b)(12)(v) of this section, for a credit card account
under an open-end (not home-secured) consumer credit plan, a card
issuer must provide the following disclosures on each periodic statement:
(A) The following statement with a bold heading: “Minimum Payment
Warning: If you make only the minimum payment each period, you will
pay more in interest and it will take you longer to pay off your balance;”
(B) The minimum payment
repayment estimate, as described in Appendix M1 to this part. If the
minimum payment repayment estimate is less than 2 years, the card
issuer must disclose the estimate in months. Otherwise, the estimate
must be disclosed in years and rounded to the nearest whole year;
(C) The minimum payment
total cost estimate, as described in Appendix M1 to this part. The
minimum payment total cost estimate must be rounded either to the
nearest whole dollar or to the nearest cent, at the card issuer’s
option;
(D) A statement
that the minimum payment repayment estimate and the minimum payment
total cost estimate are based on the current outstanding balance shown
on the periodic statement. A statement that the minimum payment repayment
estimate and the minimum payment total cost estimate are based on
the assumption that only minimum payments are made and no other amounts
are added to the balance;
(E) A toll-free telephone number where the consumer may obtain from
the card issuer information about credit counseling services consistent
with paragraph (b)(12)(iv) of this section; and (F)(1) Except as provided
in paragraph (b)(12)(i)(F)(2) of this section, the following disclosures:
(i) The estimated monthly payment
for repayment in 36 months, as described in Appendix M1 to this part.
The estimated monthly payment for repayment in 36 months must be rounded
either to the nearest whole dollar or to the nearest cent, at the
card issuer’s option;
(ii) A statement that the card issuer estimates that the consumer
will repay the outstanding balance shown on the periodic statement
in 3 years if the consumer pays the estimated monthly payment each
month for 3 years;
(iii) The total cost estimate for repayment in 36 months, as described
in Appendix M1 to this part. The total cost estimate for repayment
in 36 months must be rounded either to the nearest whole dollar or
to the nearest cent, at the card issuer’s option; and
(iv) The savings estimate
for repayment in 36 months, as described in Appendix M1 to this part.
The savings estimate for repayment in 36 months must be rounded either
to the nearest whole dollar or to the nearest cent, at the card issuer’s
option.
(2) The requirements
of paragraph (b)(12)(i)(F)(1) of this section do not apply to a periodic
statement in any of the following circumstances:
(i) The minimum payment
repayment estimate that is disclosed on the periodic statement pursuant
to paragraph (b)(12)(i)(B) of this section after rounding is three
years or less;
(ii) The estimated monthly payment for repayment in 36 months, as described
in Appendix M1 to this part, after rounding as set forth in paragraph
(b)(12)(f)(1)(i) of this section that is calculated for a particular
billing cycle is less than the minimum payment required for the plan
for that billing cycle; and
(iii) A billing cycle where an account has both a balance
in a revolving feature where the required minimum payments for this
feature will not amortize that balance in a fixed amount of time specified
in the account agreement and a balance in a fixed repayment feature
where the required minimum payment for this fixed repayment feature
will amortize that balance in a fixed amount of time specified in
the account agreement which is less than 36 months.
(ii) Negative or no amortization. If negative
or no amortization occurs when calculating the minimum payment repayment
estimate as described in Appendix M1 of this part, a card issuer must
provide the following disclosures on the periodic statement instead
of the disclosures set forth in paragraph (b)(12)(i) of this section:
(A) The following statement: “Minimum Payment Warning: Even if you
make no more charges using this card, if you make only the minimum
payment each month we estimate you will never pay off the balance
shown on this statement because your payment will be less than the
interest charged each month”;
(B) The following statement: “If you make
more than the minimum payment each period, you will pay less in interest
and pay off your balance sooner”;
(C) The estimated monthly payment for repayment
in 36 months, as described in Appendix M1 to this part. The estimated
monthly payment for repayment in 36 months must be rounded either
to the nearest whole dollar or to the nearest cent, at the issuer’s
option;
(D) A statement
that the card issuer estimates that the consumer will repay the outstanding
balance shown on the periodic statement in 3 years if the consumer
pays the estimated monthly payment each month for 3 years; and
(E) A toll-free telephone
number where the consumer may obtain from the card issuer information
about credit counseling services consistent with paragraph (b)(12)(iv)
of this section.
(13) Format requirements. The due date required by paragraph (b)(11) of this section shall
be disclosed on the front of the first page of the periodic statement.
The amount of the late payment fee and the annual percentage rate(s)
required by paragraph (b)(11) of this section shall be stated in close
proximity to the due date. The ending balance required by paragraph
(b)(10) of this section and the disclosures required by paragraph
(b)(12) of this section shall be disclosed closely proximate to the
minimum payment due. The due date, late payment fee and annual percentage
rate, ending balance, minimum payment due, and disclosures required
by paragraph (b)(12) of this section shall be grouped together. Sample
G-18(D) in Appendix G to this part sets forth an example of how these
terms may be grouped.
(14) Deferred interest or similar transactions. For accounts with an outstanding balance subject to a deferred interest
or similar program, the date by which that outstanding balance must
be paid in full in order to avoid the obligation to pay finance charges
on such balance must be disclosed on the front of any page of each
periodic statement issued during the deferred interest period beginning
with the first periodic statement issued during the deferred interest
period that reflects the deferred interest or similar transaction.
The disclosure provided pursuant to this paragraph must be substantially
similar to Sample G-18(H) in Appendix G to this part.
