(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 regulation 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 Board to determine whether a state law requirement is inconsistent.
After the Board determines that a state law is inconsistent, a creditor
may not make disclosures using the inconsistent term or form.
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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
regulation 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 regulation 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 sections 161 or 162) and
the implementing provisions of this regulation and are preempted if
the creditor cannot comply with state law without violating federal law.
(iii) A state may request
the Board 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 Board 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 226.32) is substantially
the same in meaning as a disclosure required under the act or this
regulation, 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 Board 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 226.5a 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 226.9(e) of the regulation)
are preempted. State laws relating to the enforcement of section 127(c)
and (d) of the act are not preempted.
