Fed Proposes Amendments to Regulation Z for Credit Card Accounts

by Brian Wolfman

On May 23, the Federal Reserve Board proposed revisions to Regulation Z regarding disclosures of the cost of credit for credit card accounts (sometimes referred to as "open-end" credit). Regulation Z implements the federal Truth in Lending Act (TILA). This effort represents the first comprehensive overhaul of Regulation Z since 1981. Most of the proposed changes are non-substantive and concern, as does most of TILA, the type and manner of credit disclosures. One arguably more substantive proposal would require creditors to give borrowers 45 days' notice when terms of the account are changed. (Currently, only 15 days' notice is required.)

The Fed's proposal and a range of related documents are available here on the Fed's website. Comments are due within 120 days of the date that the proposal is published in the Federal Register. Publication should occur shortly. (It is possible that the proposal has been published already, but I could not a Federal Register version.)