The Congress finds that economic stabilization would be enhanced and the competition among the various financial institutions and other firms engaged in the extension of consumer credit would be strengthened by the informed use of credit. The informed use of credit results from an awareness of the cost thereof by consumers. It is the purpose of this subchapter to assure a meaningful disclosure of credit terms so that the consumer will be able to compare more readily the various credit terms available to him and avoid the uninformed use of credit, and to protect the consumer against inaccurate and unfair credit billing and credit card practices.
(b)
Terms of personal property leases
The Congress also finds that there has been a recent trend toward leasing automobiles and other durable goods for consumer use as an alternative to installment credit sales and that these leases have been offered without adequate cost disclosures. It is the purpose of this subchapter to assure a meaningful disclosure of the terms of leases of personal property for personal, family, or household purposes so as to enable the lessee to compare more readily the various lease terms available to him, limit balloon payments in consumer leasing, enable comparison of lease terms with credit terms where appropriate, and to assure meaningful and accurate disclosures of lease terms in advertisements.
Pub. L. 94–2401976— designated existing provisions as subsec. (a) and added subsec. (b).
Pub. L. 93–4951974— inserted provisions expanding purposes of subchapter to include protection of consumer against inaccurate and unfair credit billing and credit card practices.
The regulations required to be prescribed under this title [see Tables for classification] or the amendments made by this title shall—
“(A)
be prescribed in final form before the end of the 18-month period beginning on the designated transfer date; and
“(B)
take effect not later than 12 months after the date of issuance of the regulations in final form.
“(2)
Effective date established by rule .—
Except as provided in paragraph (3), a section, or provision thereof, of this title shall take effect on the date on which the final regulations implementing such section, or provision, take effect.
“(3)
Effective date .—
A section of this title for which regulations have not been issued on the date that is 18 months after the designated transfer date shall take effect on such date.”
section 5512 of Title 12“This title [amending sections 1639c and 1639d of this title and enacting provisions set out as a note under , Banks and Banking] may be cited as the ‘Helping Expand Lending Practices in Rural Communities Act of 2015’ or the ‘HELP Rural Communities Act of 2015’.”
lsection 1a–7b of Title 16lsection 5311 of Title 31“This Act [enacting sections 1616, 1651, 1665c to 1665e, 1666i–1, 1666i–2, and 1693–1 of this title and , Conservation, amending sections 1602, 1632, 1637, 1640, 1650, 1666b, 1666c, 1666j, 1681b, 1681j, and 1693m to 1693r of this title, enacting provisions set out as notes under sections 1602, 1637, 1638, 1666b, 1681j, and 1693–1 of this title and , Money and Finance, and amending provisions set out as notes under sections 1638 and 1693 of this title] may be cited as the ‘Credit Card Accountability Responsibility and Disclosure Act of 2009’ or the ‘Credit CARD Act of 2009’.”
section 1638 of this title“This title [amending sections 1638 and 1640 of this title and sections 24 and 338a of Title 12, Banks and Banking, and enacting provisions set out as a note under ] may be cited as the ‘Mortgage Disclosure Improvement Act of 2008’.”
osection 5318 of Title 31section 9701 of Title 20“This Act [enacting sections 1681c–1, 1681c–2, 1681s–3, 1681w, and 1681x of this title and sections 9701 to 9708 of Title 20, Education, amending sections 1681a, 1681b, 1681c, 1681g, 1681i, 1681j, 1681m, 1681, 1681p, 1681s, 1681s–2, 1681t, 1681u, and 1681v of this title and , Money and Finance, enacting provisions set out as notes under this section, sections 1681, 1681a, 1681b, 1681c, 1681c–1, 1681i, 1681j, 1681m, 1681n, 1681s–2, 1681s–3 of this title, and , and amending provisions set out as a note under this section] may be cited as the ‘Fair and Accurate Credit Transactions Act of 2003’.”
Pub. L. 106–102“This subtitle [subtitle A (§§ 701–705) of title VII of , amending sections 1693b, 1693c, and 1693h of this title] may be cited as the ‘ATM Fee Reform Act of 1999’.”
section 1681a of this title“This Act [amending sections 1681a to 1681c, 1681g, 1681i, 1681k, and 1681s of this title and enacting provisions set out as a note under ] may be cited as the ‘Consumer Reporting Employment Clarification Act of 1998’.”
Pub. L. 104–208section 1681s–2 of this titleo“This chapter [chapter 1 (§§ 2401–2422) of subtitle D of title II of div. A of , enacting , amending sections 1681a to 1681e, 1681g to 1681j, 1681m to 1681, 1681q to 1681s, and 1681t of this title, and enacting provisions set out as notes under sections 1681a, 1681b, and 1681g of this title] may be cited as the ‘Consumer Credit Reporting Reform Act of 1996’.”
section 1649 of this titlesection 1605 of this title“This Act [enacting , amending sections 1605, 1631, 1635, 1640, and 1641 of this title, and enacting provisions set out as notes under ] may be cited as the ‘Truth in Lending Act Amendments of 1995’.”
Pub. L. 103–325section 1602 of this title“This subtitle [subtitle B (§§ 151–158) of title I of , enacting sections 1639 and 1648 of this title, amending sections 1602, 1604, 1610, 1640, 1641, and 1647 of this title, and enacting provisions set out as notes under this section and ] may be cited as the ‘Home Ownership and Equity Protection Act of 1994’.”
section 1637a of this title“This Act [enacting sections 1637a, 1647, and 1665b of this title, amending sections 1632 and 1637 of this title, and enacting provisions set out as notes under ] may be cited as the ‘Home Equity Loan Consumer Protection Act of 1988’.”
section 1637 of this title“This Act [amending sections 1610, 1632, 1637, 1640, and 1646 of this title and enacting provisions set out as a note under ] may be cited as the ‘Fair Credit and Charge Card Disclosure Act of 1988’.”
section 29 of Title 12“That this Act [amending sections 1602 and 1666f of this title, , Banks and Banking, and sections 205 and 212 of Title 42, The Public Health and Welfare; enacting provisions set out as notes under this section and sections 1602 and 1666f of this title; and amending provisions set out as notes under sections 1602 and 1666f of this title] may be cited as the ‘Cash Discount Act’.”
section 1646 of this title“This title [enacting , amending sections 57a, 1602 to 1607, 1610, 1612, 1613, 1631, 1632, 1635, 1637, 1638, 1640, 1641, 1643, 1663, 1664, 1665a, 1666, 1666d, 1667d, and 1691f of this title, repealing sections 1614, 1636, and 1639 of this title, and enacting provisions set out as notes under sections 1602 and 1607 of this title] may be cited as the ‘Truth in Lending Simplification and Reform Act’.”
section 1640 of this titlesection 1667 of this title“This Act [enacting sections 1667 to 1667e of this title, amending this section and , and enacting provisions set out as a note under ] may be cited as the ‘Consumer Leasing Act of 1976’.”
section 1691f of this titlesection 1609 of this title“This Act [enacting , amending this section and sections 1691b, 1691c, 1691d, 1691e of this title, repealing , enacting provisions set out as notes under this section, and repealing provision set out as a note under this section] may be cited as the ‘Equal Credit Opportunity Act Amendments of 1976’.”
section 1666 of this title“This title [enacting sections 1666 to 1666j of this title, amending this section and sections 1602, 1610, 1631, 1632, and 1637 of this title, and enacting provision set out as a note under ] may be cited as the ‘Fair Credit Billing Act’.”
section 891 of Title 18“This Act [enacting this chapter, sections 891 to 896 of Title 18, Crimes and Criminal Procedure, and provisions set out as notes under this section, sections 1631 and 1671 of this title, and ] may be cited as the ‘Consumer Credit Protection Act’.”
section 1691 of this title“This title [enacting subchapter IV of this chapter and notes set out under ] may be cited as the ‘Equal Credit Opportunity Act’.”
“If a provision enacted by this Act [see Short Title note above], is held invalid, all valid provisions that are severable from the invalid provision remain in effect. If a provision enacted by this Act is held invalid in one or more of its applications, the provision remains in effect in all valid applications that are severable from the invalid application or applications.”
, , , provided that:
Exemption or Modification of Mortgage Disclosure Requirements
“Notwithstanding any other provision of this title [see Tables for classification], in order to improve consumer awareness and understanding of transactions involving residential mortgage loans through the use of disclosures, the Board may, by rule, exempt from or modify disclosure requirements, in whole or in part, for any class of residential mortgage loans if the Board determines that such exemption or modification is in the interest of consumers and in the public interest.”
, , , provided that:
Analysis of Further Restrictions on Offers of Credit or Insurance
the ability of consumers to avoid receiving written offers of credit or insurance in connection with transactions not initiated by the consumer; and
“(B)
the potential impact that any further restrictions on providing consumers with such written offers of credit or insurance would have on consumers.
“(2)
Report .—
The Board shall submit a report summarizing the results of the study required under paragraph (1) to the Congress not later than 12 months after the date of enactment of this Act [], together with such recommendations for legislative or administrative action as the Board may determine to be appropriate.
“(3)
Content of report .—
The report described in paragraph (2) shall address the following issues:
“(A)
The current statutory or voluntary mechanisms that are available to a consumer to notify lenders and insurance providers that the consumer does not wish to receive written offers of credit or insurance.
“(B)
The extent to which consumers are currently utilizing existing statutory and voluntary mechanisms to avoid receiving offers of credit or insurance.
“(C)
The benefits provided to consumers as a result of receiving written offers of credit or insurance.
“(D)
Whether consumers incur significant costs or are otherwise adversely affected by the receipt of written offers of credit or insurance.
“(E)
Whether further restricting the ability of lenders and insurers to provide written offers of credit or insurance to consumers would affect—
“(i)
the cost consumers pay to obtain credit or insurance;
“(ii)
the availability of credit or insurance;
“(iii)
consumers’ knowledge about new or alternative products and services;
“(iv)
the ability of lenders or insurers to compete with one another; and
“(v)
the ability to offer credit or insurance products to consumers who have been traditionally underserved.”
Federal Reserve Study of Home Equity Lending and Appropriate Interest Rate Index
Pub. L. 103–325, title I, § 157108 Stat. 2197section 1602 of this titlesection 1602(bb)(1)(A) of this title, , , provided that during the period beginning 180 days after , and ending 2 years after that date, the Board of Governors of the Federal Reserve System was to conduct a study and submit to the Congress a report, including recommendations for any appropriate legislation, regarding whether consumers engaging in open end credit transactions as defined in secured by principal dwellings have adequate Federal protection and whether a more appropriate interest rate index existed for purposes of than the yield on Treasury securities.
Not less than once during the 3-year period beginning on the date of enactment of this Act [], and regularly thereafter, the Bureau, in consultation with the Advisory Board to the Bureau, shall conduct a public hearing to examine the home equity loan market and the adequacy of existing regulatory and legislative provisions and the provisions of this subtitle [see Short Title of 1994 Amendment note above] in protecting the interests of consumers, and low-income consumers in particular.
“(b)
Participation .—
In conducting hearings required by subsection (a), the Bureau shall solicit participation from consumers, representatives of consumers, lenders, and other interested parties.”
, , , as amended by , , , provided that:
Study by Federal Reserve Board of Governors Covering Effect of Charge Card Transactions Upon Card Issuers, Merchants, and Consumers
Pub. L. 97–25, title II, § 20295 Stat. 145, , , directed Board of Governors of Federal Reserve System, not later than 2 years after , to prepare a study and submit its findings to Congress on the effect of charge card transactions upon card issuers, merchants, and consumers.
Inference of Legislative Intent in Section Captions and Catchlines
section 891 of Title 18“Captions and catchlines are intended solely as aids to convenient reference, and no inference as to the legislative intent with respect to any provision enacted by this Act [enacting this chapter, section 891 to 896 of Title 18, Crimes and Criminal Procedure, and provisions set out as notes under this section, sections 1631 and 1671 of this title, and ] may be drawn from them.”
section 891 of Title 18“In this Act [enacting this chapter, sections 891 to 896 of Title 18, Crimes and Criminal Procedure, and provisions set out as notes under this section, sections 1631 and 1671 of this title, and ]:“(1)
The word ‘may’ is used to indicate that an action either is authorized or is permitted.
“(2)
The word ‘shall’ is used to indicate that an action is both authorized and required.
“(3)
The phrase ‘may not’ is used to indicate that an action is both unauthorized and forbidden.
12 U.S.C. 5582“For purposes of this title [see Tables for classification], the term ‘designated transfer date’ means the date established under section 1062 of this Act [].”