In responding orally to any inquiry about the cost of credit, a creditor, regardless of the method used to compute finance charges, shall state rates only in terms of the annual percentage rate, except that in the case of an open end credit plan, the periodic rate also may be stated and, in the case of an other than open end credit plan where a major component of the finance charge consists of interest computed at a simple annual rate, the simple annual rate also may be stated. The Bureau may, by regulation, modify the requirements of this section or provide an exception from this section for a transaction or class of transactions for which the creditor cannot determine in advance the applicable annual percentage rate.
Pub. L. 90–321, title I, § 146Pub. L. 93–495, title IV, § 401(a)88 Stat. 1517Pub. L. 96–221, title VI, § 623(a)94 Stat. 185Pub. L. 111–203, title X, § 1100A(2)124 Stat. 2107(, as added , , ; amended , , ; , , .)
Editorial Notes
Amendments
Pub. L. 111–2032010— substituted “Bureau” for “Board”.
Pub. L. 96–2211980— substituted provisions relating to use of annual percentage rate in oral disclosures by creditors, for provisions setting forth requirements for advertisements concerning consumer credit repayable in more than four installments.
Statutory Notes and Related Subsidiaries
Effective Date of 2010 Amendment
Pub. L. 111–203section 1100H of Pub. L. 111–203section 552a of Title 5Amendment by effective on the designated transfer date, see , set out as a note under , Government Organization and Employees.
Effective Date of 1980 Amendment
Pub. L. 96–221section 625 of Pub. L. 96–221section 1602 of this titleAmendment by effective on expiration of two years and six months after , with all regulations, forms, and clauses required to be prescribed to be promulgated at least one year prior to such effective date, and allowing any creditor to comply with any amendments, in accordance with the regulations, forms, and clauses prescribed by the Board prior to such effective date, see , set out as a note under .
Effective Date
Pub. L. 93–495, title IV, § 41688 Stat. 1521