Unfair or Deceptive Acts or Practices, 7925-7926 [2010-2672]
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Federal Register / Vol. 75, No. 34 / Monday, February 22, 2010 / Rules and Regulations
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[FR Doc. 2010–624 Filed 2–19–10; 8:45 am]
BILLING CODE 6210–01–P
FEDERAL RESERVE SYSTEM
12 CFR Part 226
[Regulation Z; Docket No. R–1286]
Truth in Lending
cprice-sewell on DSKHWCL6B1PROD with RULES2
AGENCY: Board of Governors of the
Federal Reserve System.
ACTION: Final rule; withdrawal.
SUMMARY: The Board is withdrawing a
final rule amending Regulation Z and
the staff commentary to the regulation
published on January 29, 2009 (January
2009 Regulation Z Rule). See 72 FR
5244. The Board is publishing a new
final rule elsewhere in this Federal
Register amending Regulation Z in
order to implement the provisions of the
Credit Card Accountability
Responsibility and Disclosure Act of
2009 that are effective on February 22,
2010. The requirements of the January
2009 Regulation Z Rule have been
revised for consistency with the Credit
Card Act and incorporated in the new
final rule. Therefore, the Board is
withdrawing the January 2009
Regulation Z Rule as unnecessary.
DATES: The final rule published on
January 29, 2009, at 74 FR 5244, is
withdrawn as of February 22, 2010.
FOR FURTHER INFORMATION CONTACT:
Stephen Shin, Attorney, or Amy
Henderson or Benjamin K. Olson,
Senior Attorneys, Division of Consumer
and Community Affairs, Board of
Governors of the Federal Reserve
System, at (202) 452–3667 or 452–2412;
for users of Telecommunications Device
for the Deaf (TDD) only, contact (202)
263–4869.
SUPPLEMENTARY INFORMATION: On
December 18, 2008, the Board adopted
a final rule amending Regulation Z,
which implements the Truth in Lending
Act (TILA), and the official staff
commentary. The rule followed a
comprehensive review of TILA’s
provisions for open-end (not homesecured) credit, including credit cards.
The rule made comprehensive changes
to those provisions, including
amendments that affect all of the five
major types of required disclosures:
Credit card applications and
solicitations, account-opening
disclosures, periodic statements, notices
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09:25 Feb 19, 2010
Jkt 220001
Page 3, Page 18,
Page 30.
Page 6, Page 24 .......
of changes in terms, and advertisements.
The rule was published in the Federal
Register on January 29, 2009, and the
effective date for the amendments was
July 1, 2010. See 74 FR 5244 (January
2009 Regulation Z Rule).
On May 22, 2009, the Credit Card
Accountability Responsibility and
Disclosure Act of 2009 (Credit Card Act)
was signed into law. See Public Law
111–24, 123 Stat. 1734 (2009). The
Credit Card Act primarily amends TILA
and establishes a number of new
substantive and disclosure requirements
to establish fair and transparent
practices pertaining to open-end
consumer credit plans, including credit
card accounts. Elsewhere in today’s
Federal Register, the Board has
published a new final rule amending
Regulation Z and the staff commentary
in order to implement provisions of the
Credit Card Act that are effective on
February 22, 2010. The provisions of the
Board’s January 2009 Regulation Z Rule
have been revised for consistency with
the Credit Card Act and incorporated
into the new final rule. Accordingly, the
Board is withdrawing the January 2009
Regulation Z Rule.
The new final rule is effective on
February 22, 2010. However, to the
extent consistent with the Credit Card
Act, the Board has retained the July 1,
2010 mandatory compliance date for
many of the provisions incorporated
from the January 2009 Regulation Z
Rule. The Board has provided
additional discussion of the withdrawal
of the January 2009 Regulation Z Rule
and the mandatory compliance dates in
the Supplementary Information for the
new final rule.
The final rule published on January
29, 2009, at 74 FR 5244, is withdrawn
as of February 22, 2010.
*
*
*
*
*
By order of the Board of Governors of the
Federal Reserve System, January 11, 2010.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 2010–606 Filed 2–19–10; 8:45 am]
BILLING CODE 6210–01–P
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7925
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FEDERAL RESERVE SYSTEM
12 CFR Part 227
[Regulation AA; Docket No. R–1383]
Unfair or Deceptive Acts or Practices
AGENCY: Board of Governors of the
Federal Reserve System.
ACTION: Final rule.
SUMMARY: On January 29, 2009, the
Board published a final rule amending
Regulation AA and the staff
commentary to the regulation. The
substantive requirements in the January
2009 Regulation AA Rule, which were
scheduled to go into effect on July 1,
2010, have been superseded by
provisions of the Credit Card
Accountability Responsibility and
Disclosure Act of 2009 (Credit Card Act)
that go into effect on February 22, 2010.
Elsewhere in this issue of the Federal
Register, the Board is implementing
these Credit Card Act provisions in a
new final rule amending Regulation Z.
Accordingly, in order to avoid
duplication and inconsistency, the
Board is further amending Regulation
AA to remove the substantive
requirements in the January 2009
Regulation AA Rule. For procedural
reasons, these requirements will be
removed effective July 1, 2010.
However, it is the Board’s intent that the
substantive requirements of the January
2009 Regulation AA Rule will not take
effect.
The Board issued its January 2009
Regulation AA Rule jointly with rules
issued by the Office of Thrift
Supervision (OTS) and the National
Credit Union Administration (NCUA).
This final rule applies only to the
Board’s Regulation AA and does not
affect the rules issued by the OTS and
NCUA.
DATES: This rule is effective July 1,
2010.
FOR FURTHER INFORMATION CONTACT:
Stephen Shin, Attorney, or Amy
Henderson or Benjamin K. Olson,
Senior Attorneys, Division of Consumer
and Community Affairs, Board of
Governors of the Federal Reserve
System, at (202) 452–3667 or 452–2412;
for users of Telecommunications Device
for the Deaf (TDD) only, contact (202)
263–4869.
SUPPLEMENTARY INFORMATION: On
December 18, 2008, the Board used its
authority under the Federal Trade
E:\FR\FM\22FER2.SGM
22FER2
cprice-sewell on DSKHWCL6B1PROD with RULES2
7926
Federal Register / Vol. 75, No. 34 / Monday, February 22, 2010 / Rules and Regulations
Commission Act (FTC Act) to adopt a
final rule amending Regulation AA (12
CFR Part 227) and the staff commentary
to the rule in order to protect consumers
from unfair acts or practices with
respect to consumer credit card
accounts. In addition to imposing new
substantive requirements, the rule also
made several non-substantive
amendments to Regulation AA. For
example, the Board revised certain
subpart headings and consolidated the
consumer complaint provisions in
§§ 227.1 and 227.2 into a new § 227.1
and added an e-mail address and Web
site where consumers can submit
complaints.
The rule was published in the Federal
Register on January 29, 2009 (See 74 FR
5498 (January 2009 Regulation AA
Rule)), and the effective date for the
amendments is July 1, 2010. The Board
issued its January 2009 Regulation AA
Rule jointly with a rule issued by the
Office of Thrift Supervision (OTS)
amending 12 CFR Part 535 and a rule
issued by the National Credit Union
Administration (NCUA) amending 12
CFR Part 706.
On May 22, 2009, the Credit Card
Accountability Responsibility and
Disclosure Act of 2009 (Credit Card Act)
was signed into law. See Public Law
111–24, 123 Stat. 1734 (2009). The
Credit Card Act primarily amends the
Truth in Lending Act (TILA) and
establishes a number of new substantive
and disclosure requirements to establish
fair and transparent practices pertaining
to open-end consumer credit plans,
including credit card accounts. The
majority of the Credit Card Act’s
provisions go into effect on February 22,
2010, including provisions that
supersede the substantive requirements
in the Board’s January 2009 Regulation
AA Rule. Elsewhere in today’s Federal
Register, the Board has published a new
final rule amending Regulation Z and
the staff commentary to the regulation
in order to implement those provisions
of the Credit Card Act.
Accordingly, because the substantive
requirements in the Board’s January
2009 Regulation AA Rule are no longer
necessary and—in some cases—are
inconsistent with the provisions of the
Credit Card Act, the Board is amending
Regulation AA to remove those
requirements. However, the Board is
retaining the non-substantive
amendments in the January 2009
Regulation AA Rule, such as the
revisions to the consumer complaint
provisions.
For procedural reasons, these
requirements will be removed effective
July 1, 2010. However, it is the Board’s
intent that the substantive requirements
VerDate Nov<24>2008
09:25 Feb 19, 2010
Jkt 220001
in the January 2009 Regulation AA Rule
will not take effect. In addition, the
Board does not intend to finalize the
proposed amendments to the January
2009 Regulation AA Rule, which were
published in the Federal Register on
May 5, 2009. See 74 FR 20804. This
final rule applies only to the Board’s
Regulation AA and does not affect the
rule issued by the OTS amending 12
CFR Part 535 or the rule issued by the
NCUA amending 12 CFR Part 706.
List of Subjects in 12 CFR Part 227
Banks, Banking, Credit,
Intergovernmental relations, Trade
practices.
Board of Governors of the Federal
Reserve System
12 CFR Chapter II
Authority and Issuance
For the reasons discussed in the
preamble, the Board amends 12 CFR
part 227 as set forth below:
■
PART 227—UNFAIR OR DECEPTIVE
ACTS OR PRACTICES (REGULATION
AA)
1. The authority citation for part 227
continues to read as follows:
■
Authority: 15 U.S.C. 57a(f).
Subpart A—General Provisions
2. Section 227.1 is revised to read as
follows:
■
§ 227.1
Authority, purpose, and scope.
(a) Authority. This part is issued by
the Board under section 18(f) of the
Federal Trade Commission Act, 15
U.S.C. 57a(f) (section 202(a) of the
Magnuson-Moss Warranty—Federal
Trade Commission Improvement Act,
Pub. L. 93–637).
(b) Purpose. The purpose of this part
is to prohibit unfair or deceptive acts or
practices in violation of section 5(a)(1)
of the Federal Trade Commission Act,
15 U.S.C. 45(a)(1). This part defines and
contains requirements prescribed for the
purpose of preventing specific unfair or
deceptive acts or practices of banks. The
prohibitions in this part do not limit the
Board’s or any other agency’s authority
to enforce the FTC Act with respect to
any other unfair or deceptive acts or
practices.
(c) Scope. This part applies to banks,
including subsidiaries of banks and
other entities listed in paragraph (c)(2)
of this section. This part does not apply
to savings associations as defined in 12
U.S.C. 1813(b). Compliance is to be
enforced by:
(1) The Comptroller of the Currency,
in the case of national banks and federal
PO 00000
Frm 00270
Fmt 4701
Sfmt 9990
branches and federal agencies of foreign
banks;
(2) The Board of Governors of the
Federal Reserve System, in the case of
banks that are members of the Federal
Reserve System (other than banks
referred to in paragraph (c)(1) of this
section), branches and agencies of
foreign banks (other than federal
branches, federal agencies, and insured
state branches of foreign banks),
commercial lending companies owned
or controlled by foreign banks, and
organizations operating under section
25 or 25A of the Federal Reserve Act;
and
(3) The Federal Deposit Insurance
Corporation, in the case of banks
insured by the Federal Deposit
Insurance Corporation (other than banks
referred to in paragraphs (c)(1) and (c)(2)
of this section), and insured state
branches of foreign banks.
(d) Definitions. Unless otherwise
noted, the terms used in paragraph (c)
of this section that are not defined in the
Federal Trade Commission Act or in
section 3(s) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(s)) shall
have the meaning given to them in
section 1(b) of the International Banking
Act of 1978 (12 U.S.C. 3101).
Subpart C—[Removed and Reserved]
3. Subpart C is removed and reserved.
■ 4. Supplement I is revised to read as
follows:
■
Supplement I to Part 227—Official Staff
Commentary
Subpart A—General Provisions for
Consumer Protection Rules
§ 227.1
Authority, purpose, and scope.
1(c) Scope
1. Penalties for noncompliance.
Administrative enforcement of the rule
for banks may involve actions under
section 8 of the Federal Deposit
Insurance Act (12 U.S.C. 1818),
including cease-and-desist orders
requiring that actions be taken to
remedy violations and civil money
penalties.
2. Industrial loan companies.
Industrial loan companies that are
insured by the Federal Deposit
Insurance Corporation are covered by
the Board’s rule.
By order of the Board of Governors of the
Federal Reserve System, February 3, 2010.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 2010–2672 Filed 2–19–10; 8:45 am]
BILLING CODE 6210–01–P
E:\FR\FM\22FER2.SGM
22FER2
]]>Agencies
[Federal Register Volume 75, Number 34 (Monday, February 22, 2010)]
[Rules and Regulations]
[Pages 7925-7926]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-2672]
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
12 CFR Part 227
[Regulation AA; Docket No. R-1383]
Unfair or Deceptive Acts or Practices
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: On January 29, 2009, the Board published a final rule amending
Regulation AA and the staff commentary to the regulation. The
substantive requirements in the January 2009 Regulation AA Rule, which
were scheduled to go into effect on July 1, 2010, have been superseded
by provisions of the Credit Card Accountability Responsibility and
Disclosure Act of 2009 (Credit Card Act) that go into effect on
February 22, 2010. Elsewhere in this issue of the Federal Register, the
Board is implementing these Credit Card Act provisions in a new final
rule amending Regulation Z. Accordingly, in order to avoid duplication
and inconsistency, the Board is further amending Regulation AA to
remove the substantive requirements in the January 2009 Regulation AA
Rule. For procedural reasons, these requirements will be removed
effective July 1, 2010. However, it is the Board's intent that the
substantive requirements of the January 2009 Regulation AA Rule will
not take effect.
The Board issued its January 2009 Regulation AA Rule jointly with
rules issued by the Office of Thrift Supervision (OTS) and the National
Credit Union Administration (NCUA). This final rule applies only to the
Board's Regulation AA and does not affect the rules issued by the OTS
and NCUA.
DATES: This rule is effective July 1, 2010.
FOR FURTHER INFORMATION CONTACT: Stephen Shin, Attorney, or Amy
Henderson or Benjamin K. Olson, Senior Attorneys, Division of Consumer
and Community Affairs, Board of Governors of the Federal Reserve
System, at (202) 452-3667 or 452-2412; for users of Telecommunications
Device for the Deaf (TDD) only, contact (202) 263-4869.
SUPPLEMENTARY INFORMATION: On December 18, 2008, the Board used its
authority under the Federal Trade
[[Page 7926]]
Commission Act (FTC Act) to adopt a final rule amending Regulation AA
(12 CFR Part 227) and the staff commentary to the rule in order to
protect consumers from unfair acts or practices with respect to
consumer credit card accounts. In addition to imposing new substantive
requirements, the rule also made several non-substantive amendments to
Regulation AA. For example, the Board revised certain subpart headings
and consolidated the consumer complaint provisions in Sec. Sec. 227.1
and 227.2 into a new Sec. 227.1 and added an e-mail address and Web
site where consumers can submit complaints.
The rule was published in the Federal Register on January 29, 2009
(See 74 FR 5498 (January 2009 Regulation AA Rule)), and the effective
date for the amendments is July 1, 2010. The Board issued its January
2009 Regulation AA Rule jointly with a rule issued by the Office of
Thrift Supervision (OTS) amending 12 CFR Part 535 and a rule issued by
the National Credit Union Administration (NCUA) amending 12 CFR Part
706.
On May 22, 2009, the Credit Card Accountability Responsibility and
Disclosure Act of 2009 (Credit Card Act) was signed into law. See
Public Law 111-24, 123 Stat. 1734 (2009). The Credit Card Act primarily
amends the Truth in Lending Act (TILA) and establishes a number of new
substantive and disclosure requirements to establish fair and
transparent practices pertaining to open-end consumer credit plans,
including credit card accounts. The majority of the Credit Card Act's
provisions go into effect on February 22, 2010, including provisions
that supersede the substantive requirements in the Board's January 2009
Regulation AA Rule. Elsewhere in today's Federal Register, the Board
has published a new final rule amending Regulation Z and the staff
commentary to the regulation in order to implement those provisions of
the Credit Card Act.
Accordingly, because the substantive requirements in the Board's
January 2009 Regulation AA Rule are no longer necessary and--in some
cases--are inconsistent with the provisions of the Credit Card Act, the
Board is amending Regulation AA to remove those requirements. However,
the Board is retaining the non-substantive amendments in the January
2009 Regulation AA Rule, such as the revisions to the consumer
complaint provisions.
For procedural reasons, these requirements will be removed
effective July 1, 2010. However, it is the Board's intent that the
substantive requirements in the January 2009 Regulation AA Rule will
not take effect. In addition, the Board does not intend to finalize the
proposed amendments to the January 2009 Regulation AA Rule, which were
published in the Federal Register on May 5, 2009. See 74 FR 20804. This
final rule applies only to the Board's Regulation AA and does not
affect the rule issued by the OTS amending 12 CFR Part 535 or the rule
issued by the NCUA amending 12 CFR Part 706.
List of Subjects in 12 CFR Part 227
Banks, Banking, Credit, Intergovernmental relations, Trade
practices.
Board of Governors of the Federal Reserve System
12 CFR Chapter II
Authority and Issuance
0
For the reasons discussed in the preamble, the Board amends 12 CFR part
227 as set forth below:
PART 227--UNFAIR OR DECEPTIVE ACTS OR PRACTICES (REGULATION AA)
0
1. The authority citation for part 227 continues to read as follows:
Authority: 15 U.S.C. 57a(f).
Subpart A--General Provisions
0
2. Section 227.1 is revised to read as follows:
Sec. 227.1 Authority, purpose, and scope.
(a) Authority. This part is issued by the Board under section 18(f)
of the Federal Trade Commission Act, 15 U.S.C. 57a(f) (section 202(a)
of the Magnuson-Moss Warranty--Federal Trade Commission Improvement
Act, Pub. L. 93-637).
(b) Purpose. The purpose of this part is to prohibit unfair or
deceptive acts or practices in violation of section 5(a)(1) of the
Federal Trade Commission Act, 15 U.S.C. 45(a)(1). This part defines and
contains requirements prescribed for the purpose of preventing specific
unfair or deceptive acts or practices of banks. The prohibitions in
this part do not limit the Board's or any other agency's authority to
enforce the FTC Act with respect to any other unfair or deceptive acts
or practices.
(c) Scope. This part applies to banks, including subsidiaries of
banks and other entities listed in paragraph (c)(2) of this section.
This part does not apply to savings associations as defined in 12
U.S.C. 1813(b). Compliance is to be enforced by:
(1) The Comptroller of the Currency, in the case of national banks
and federal branches and federal agencies of foreign banks;
(2) The Board of Governors of the Federal Reserve System, in the
case of banks that are members of the Federal Reserve System (other
than banks referred to in paragraph (c)(1) of this section), branches
and agencies of foreign banks (other than federal branches, federal
agencies, and insured state branches of foreign banks), commercial
lending companies owned or controlled by foreign banks, and
organizations operating under section 25 or 25A of the Federal Reserve
Act; and
(3) The Federal Deposit Insurance Corporation, in the case of banks
insured by the Federal Deposit Insurance Corporation (other than banks
referred to in paragraphs (c)(1) and (c)(2) of this section), and
insured state branches of foreign banks.
(d) Definitions. Unless otherwise noted, the terms used in
paragraph (c) of this section that are not defined in the Federal Trade
Commission Act or in section 3(s) of the Federal Deposit Insurance Act
(12 U.S.C. 1813(s)) shall have the meaning given to them in section
1(b) of the International Banking Act of 1978 (12 U.S.C. 3101).
Subpart C--[Removed and Reserved]
0
3. Subpart C is removed and reserved.
0
4. Supplement I is revised to read as follows:
Supplement I to Part 227--Official Staff Commentary
Subpart A--General Provisions for Consumer Protection Rules
Sec. 227.1 Authority, purpose, and scope.
1(c) Scope
1. Penalties for noncompliance. Administrative enforcement of the
rule for banks may involve actions under section 8 of the Federal
Deposit Insurance Act (12 U.S.C. 1818), including cease-and-desist
orders requiring that actions be taken to remedy violations and civil
money penalties.
2. Industrial loan companies. Industrial loan companies that are
insured by the Federal Deposit Insurance Corporation are covered by the
Board's rule.
By order of the Board of Governors of the Federal Reserve
System, February 3, 2010.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 2010-2672 Filed 2-19-10; 8:45 am]
BILLING CODE 6210-01-P
