Truth in Lending; Correction, 31221-31222 [2011-12795]
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Federal Register / Vol. 76, No. 104 / Tuesday, May 31, 2011 / Rules and Regulations
the interim rule until July 25, 2011. This
additional time will allow CEM testing
facilities to make any adjustments to
their operating procedures that may be
necessary in order to successfully
implement the interim rule.
Accordingly, we are delaying
enforcement of the interim rule
amending 9 CFR part 93, published at
76 FR 16683–16686 on March 25, 2011,
until July 25, 2011.
Authority: 7 U.S.C. 1622 and 8301–8317;
21 U.S.C. 136 and 136a; 31 U.S.C. 9701; 7
CFR 2.22, 2.80, and 371.4.
Done in Washington, DC, this 25th day of
May 2011.
Kevin Shea,
Acting Administrator, Animal and Plant
Health Inspection Service.
[FR Doc. 2011–13360 Filed 5–27–11; 8:45 am]
BILLING CODE 3410–34–P
[Docket No. R–1393]
RIN 7100–AD55
Truth in Lending; Correction
Board of Governors of the
Federal Reserve System.
ACTION: Final rule; correction.
AGENCY:
This document corrects
certain typographical errors in the
regulation and the staff commentary of
the final rule published in the Federal
Register of April 25, 2011. The final rule
amends Regulation Z, which
implements the Truth in Lending Act,
in order to clarify certain aspects of the
rules that implement the Credit Card
Accountability Responsibility and
Disclosure Act of 2009.
DATES: Effective Date: October 1, 2011.
FOR FURTHER INFORMATION CONTACT:
Stephen Shin, Attorney, or Benjamin K.
Olson, Counsel, 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: The Board
published a final rule in the Federal
Register of April 25, 2011 (76 FR 22948)
(FR Doc. 2011–8843), amending
Regulation Z and the staff commentary
to the regulation, in order to clarify
certain aspects of the rules that
implement the Credit Card
Accountability Responsibility and
Disclosure Act of 2009. As published,
the final rule inadvertently omits the
rmajette on DSK89S0YB1PROD with RULES
14:21 May 27, 2011
Jkt 223001
§ 226.9
[Corrected]
1. On page 23000, in the third column,
line 55, correct amendatory instruction
7 to read as follows:
Section 226.9 is amended by adding
paragraph (b)(3)(iii) and by revising
paragraphs (c)(2)(i)A), (c)(2)(ii),
(c)(2)(iii), (c)(2)(iv)(A)(1), (c)(2)(iv)(B),
(c)(2)(iv)(D), (c)(2)(v)(B)(1) through (3),
(c)(2)(v)(C), and (c)(2)(v)(D).
■
[Corrected]
2. On page 23003, in the third column,
line 48, correct amendatory instruction
14.B. to read as follows:
B. Redesignating paragraphs (b)(4)
through (7) as paragraphs (b)(5) through
(8), and revising redesignated paragraph
(b)(7);
■ 3. On page 23004, in the first column,
line 24, in § 226.58, correct paragraph
(b) by adding paragraph (b)(7) to read as
follows:
(7) Pricing information. For purposes
of this section, ‘‘pricing information’’
means the information listed in
§ 226.6(b)(2)(i) through (b)(2)(xii).
Pricing information does not include
temporary or promotional rates and
terms or rates and terms that apply only
to protected balances.
*
*
*
*
*
■
12 CFR Part 226
VerDate Mar<15>2010
PART 226—[CORRECTED]
§ 226.58
FEDERAL RESERVE SYSTEM
SUMMARY:
revisions to redesignated § 226.58(b)(7)
and the revised commentary to
§ 226.55(b)(6). In addition, the
published final rule misprints comment
51(b)(2)–1 and contains other
typographical errors.
Accordingly, in the final rule, FR Doc.
2011–8843, published on April 25,
2011, (76 FR 22948) make the following
corrections:
Supplement I to Part 226 [Corrected]
4. On page 23016, in the first column,
line 3, italicize the heading ‘‘9(c)
Change in terms.’’
■ 5. On page 23021, in the third column,
line 29, correct paragraph 1. of 51(b)(2)
to read as follows:
■
1. Credit line request by joint
accountholder aged 21 or older. The
requirement under § 226.51(b)(2) that a
cosigner, guarantor, or joint accountholder
for a credit card account opened pursuant to
§ 226.51(b)(1)(ii) must agree in writing to
assume liability for the increase before a
credit line is increased, does not apply if the
cosigner, guarantor or joint accountholder
who is at least 21 years old initiates the
request for the increase.
6. On page 23034, in the first column,
line 24, correct 55(b) by adding 55(b)(6)
to read as follows:
■
55(b)(6) Servicemembers Civil Relief Act
exception.
PO 00000
Frm 00005
Fmt 4700
Sfmt 4700
31221
1. Rate, fee, or charge that does not exceed
rate, fee, or charge that applied before
decrease. When a rate or a fee or charge
subject to § 226.55 has been decreased
pursuant to 50 U.S.C. app. 527 or a similar
federal or state statute or regulation,
§ 226.55(b)(6) permits the card issuer to
increase the rate, fee, or charge once 50
U.S.C. app. 527 or the similar statute or
regulation no longer applies. However,
§ 226.55(b)(6) prohibits the card issuer from
applying to any transactions that occurred
prior to the decrease a rate, fee, or charge that
exceeds the rate, fee, or charge that applied
to those transactions prior to the decrease
(except to the extent permitted by one of the
other exceptions in § 226.55(b)). For example,
if a temporary rate applied prior to a decrease
in rate pursuant to 50 U.S.C. app. 527 and
the temporary rate expired during the period
that 50 U.S.C. app. 527 applied to the
account, the card issuer may apply an
increased rate once 50 U.S.C. app. 527 no
longer applies to the extent consistent with
§ 226.55(b)(1). Similarly, if a variable rate
applied prior to a decrease in rate pursuant
to 50 U.S.C. app. 527, the card issuer may
apply any increase in that variable rate once
50 U.S.C. app. 527 no longer applies to the
extent consistent with § 226.55(b)(2).
2. Decreases in rates, fees, and charges to
amounts consistent with 50 U.S.C. app. 527
or similar statute or regulation. If a card
issuer deceases an annual percentage rate or
a fee or charge subject to § 226.55 pursuant
to 50 U.S.C. app. 527 or a similar federal or
state statute or regulation and if the card
issuer also decreases other rates, fees, or
charges (such as the rate that applies to new
transactions) to amounts that are consistent
with 50 U.S.C. app. 527 or a similar federal
or state statute or regulation, the card issuer
may increase those rates, fees, and charges
consistent with § 226.55(b)(6).
3. Example. Assume that on December 31
of year one the annual percentage rate that
applies to a $5,000 balance on a credit card
account is a variable rate that is determined
by adding a margin of 10 percentage points
to a publicly-available index that is not under
the card issuer’s control. The account is also
subject to a monthly maintenance fee of $10.
On January 1 of year two, the card issuer
reduces the rate that applies to the $5,000
balance to a non-variable rate of 6% and
ceases to impose the $10 monthly
maintenance fee and other fees (including
late payment fees) pursuant to 50 U.S.C. app.
527. The card issuer also decreases the rate
that applies to new transactions to 6%.
During year two, the consumer uses the
account for $1,000 in new transactions. On
January 1 of year three, 50 U.S.C. app. 527
ceases to apply and the card issuer provides
a notice pursuant to § 226.9(c) informing the
consumer that on February 15 of year three
the variable rate determined using the 10point margin will apply to any remaining
portion of the $5,000 balance and to any
remaining portion of the $1,000 balance. The
notice also states that the $10 monthly
maintenance fee and other fees (including
late payment fees) will resume on February
15 of year three. Consistent with
§ 226.9(c)(2)(iv)(B), the card issuer is not
required to provide a right to reject in these
E:\FR\FM\31MYR1.SGM
31MYR1
31222
Federal Register / Vol. 76, No. 104 / Tuesday, May 31, 2011 / Rules and Regulations
circumstances. On February 15 of year three,
§ 226.55(b)(6) permits the card issuer to begin
accruing interest on any remaining portion of
the $5,000 and $1,000 balances at the
variable rate determined using the 10-point
margin and to resume imposing the $10
monthly maintenance fee and other fees
(including late payment fees).
By order of the Board of Governors of the
Federal Reserve System, acting through the
Secretary under delegated authority, May 19,
2011.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 2011–12795 Filed 5–27–11; 8:45 am]
BILLING CODE 6210–01–P
BUREAU OF CONSUMER FINANCIAL
PROTECTION
12 CFR Chapter X
[Docket No.: CFPB–HQ–2011–1]
Identification of Enforceable Rules and
Orders
Bureau of Consumer Financial
Protection.
ACTION: Notice for Public Comment.
AGENCY:
Section 1063(i) of the
Consumer Financial Protection Act of
2010 (‘‘Act’’) 1 requires the Bureau of
Consumer Financial Protection (‘‘CFPB’’
or ‘‘Bureau’’) to publish in the Federal
Register a list of the rules and orders
that will be enforced by the CFPB. This
notice sets forth a list for public
comment. A final list will be published
not later than the designated transfer
date, July 21, 2011.
DATES: Comments are invited and must
be received on or before June 30, 2011.
ADDRESSES: Interested parties are
invited to submit written comments
electronically or in paper form.
Comments should refer to ‘‘Docket No.
CFPB–HQ–2011–1.’’ Comments should
be submitted to:
• Electronic: https://
www.regulations.gov.
• Mail or Hand Delivery/Courier in
Lieu of Mail: Office of the General
Counsel, CFPB, 1801 L Street, NW.,
Washington, DC 20036.
All comments received will be posted
to https://www.regulations.gov. In
addition, comments will be available for
public inspection and copying in
Treasury’s Library, Room 1428, Main
Treasury Building, 1500 Pennsylvania
Avenue, NW., Washington, DC 20220,
on official business days between the
hours of 10 a.m. and 5 p.m. Eastern
rmajette on DSK89S0YB1PROD with RULES
SUMMARY:
1 The Act is Title X of the Dodd-Frank Wall Street
Reform and Consumer Protection Act, Public Law
111–203.
VerDate Mar<15>2010
14:21 May 27, 2011
Jkt 223001
Time. An appointment to inspect
comments can be made by telephoning
(202) 622–0990.
All comments, including attachments
and other supporting materials, will
become part of the public record and
subject to public disclosure. Sensitive
personal information, such as account
numbers or social security numbers,
should not be included. Comments will
not be edited to remove any identifying
or contact information.
FOR FURTHER INFORMATION CONTACT:
Rebecca G. Deutsch, Office of the
General Counsel, CFPB, 1801 L Street,
NW., Washington, DC 20036,
rebecca.deutsch@treasury.gov.
SUPPLEMENTARY INFORMATION: Under the
Act, on the designated transfer date, July
21, 2011,2 certain consumer financial
protection authorities will transfer from
seven transferor agencies 3 to the CFPB,
and the CFPB will also assume certain
new authorities. Subject to the
limitations and other provisions of the
Act, the CFPB will be authorized to
enforce, inter alia, rules and orders
issued by the transferor agencies under
the enumerated consumer laws.4 The
CFPB will also have authority to enforce
in some circumstances the Federal
Trade Commission’s Telemarketing
Sales Rule and its rules under the
Federal Trade Commission Act,
although the Federal Trade Commission
will retain full authority over these
rules.5
Section 1063(i) of the Act provides
that, not later than the designated
transfer date, the CFPB ‘‘(1) shall, after
consultation with the head of each
transferor agency, identify the rules and
orders that will be enforced by the
Bureau; and (2) shall publish a list of
such rules and orders in the Federal
Register.’’ The CFPB has consulted with
each transferor agency pursuant to
section 1063(i) and has developed a list
of rules for which it seeks public
2 The Secretary of the Treasury designated this
date pursuant to section 1062 of the Act. See 75 FR
57252–02, Sept. 20, 2010.
3 Section 1061(a)(2) of the Act defines the terms
‘‘transferor agency’’ and ‘‘transferor agencies’’ to
mean, respectively, ‘‘(A) the Board of Governors
(and any Federal Reserve Bank, as context requires),
the Federal Deposit Insurance Corporation, the
Federal Trade Commission, the National Credit
Union Administration, the Office of the Comptroller
of the Currency, the Office of Thrift Supervision,
and the Department of Housing and Urban
Development, and the heads of those agencies, and
(B) the agencies listed in subparagraph (A)
collectively.’’
4 ‘‘Enumerated consumer laws’’ is defined in
section 1002(12) of the Act and section 1400(b) of
the Mortgage Reform and Anti-Predatory Lending
Act, Tit. XIV, Public Law 111–203.
5 These rules are listed as items 1 and 5 through
11 in section F (‘‘Federal Trade Commission’’) of
the list below.
PO 00000
Frm 00006
Fmt 4700
Sfmt 4700
comment.6 After consultation, neither
the transferor agencies nor the CFPB
have identified any orders for inclusion
in the list. After considering any public
comments, the CFPB will publish a final
list in the Federal Register not later
than the designated transfer date.
The CFPB’s enforcement authority is
defined by the Act and other applicable
law. As a result, the list required by
section 1063(i) will not have a
substantive effect on any rules or orders
or the parties who may be subject to
them; it will merely provide a
convenient reference source.
Accordingly, the inclusion or exclusion
of any rule or order would not alter the
CFPB’s authority. In addition, section
1063(i) does not require the CFPB to
update, correct, or otherwise maintain
the final list. Because the list under
section 1063(i) reflects the CFPB’s
interpretation of its authority under the
Act and relates to agency organization,
procedure, or practice, the list is not
subject to the notice-and-comment
requirements of the Administrative
Procedure Act (‘‘APA’’) (5 U.S.C. 551 et
seq).7 Nevertheless, the Bureau invites
public comment during a thirty-day
period.
Accordingly, pursuant to section
1063(i), the CFPB invites public
comment on the following list of rules
that will be enforceable by the CFPB
subject to the limitations and other
provisions of the Act:8
A. Board of Governors of the Federal
Reserve
1. 12 CFR Part 202—Equal Credit
Opportunity Act (Regulation B)
2. 12 CFR Part 203—Home Mortgage
Disclosure (Regulation C)
3. 12 CFR Part 205—Electronic Fund
Transfers (Regulation E)
4. 12 CFR 208.101–105 & Appendix A
to Subpart I—Registration of Residential
Mortgage Loan Originators (Regulation
H, Subpart I)
5. 12 CFR Part 213—Consumer
Leasing (Regulation M)
6. 12 CFR Part 216—Privacy of
Consumer Financial Information
(Regulation P)
7. 12 CFR Part 222—Fair Credit
Reporting (Regulation V), except with
6 Section 1066 of the Act grants the Secretary of
the Treasury interim authority to perform certain
functions of the CFPB. Pursuant to that authority,
Treasury publishes this notice on behalf of the
CFPB.
7 Because publication of the list under section
1063(i) is not subject to the APA’s notice-andcomment requirements, an initial regulatory
flexibility analysis is not required under the
Regulatory Flexibility Act (5 U.S.C. 601 et seq.).
8 Unless otherwise noted, all references to a Part
include accompanying appendices and
supplements.
E:\FR\FM\31MYR1.SGM
31MYR1
]]>Agencies
[Federal Register Volume 76, Number 104 (Tuesday, May 31, 2011)]
[Rules and Regulations]
[Pages 31221-31222]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-12795]
=======================================================================
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
12 CFR Part 226
[Docket No. R-1393]
RIN 7100-AD55
Truth in Lending; Correction
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Final rule; correction.
-----------------------------------------------------------------------
SUMMARY: This document corrects certain typographical errors in the
regulation and the staff commentary of the final rule published in the
Federal Register of April 25, 2011. The final rule amends Regulation Z,
which implements the Truth in Lending Act, in order to clarify certain
aspects of the rules that implement the Credit Card Accountability
Responsibility and Disclosure Act of 2009.
DATES: Effective Date: October 1, 2011.
FOR FURTHER INFORMATION CONTACT: Stephen Shin, Attorney, or Benjamin K.
Olson, Counsel, 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: The Board published a final rule in the
Federal Register of April 25, 2011 (76 FR 22948) (FR Doc. 2011-8843),
amending Regulation Z and the staff commentary to the regulation, in
order to clarify certain aspects of the rules that implement the Credit
Card Accountability Responsibility and Disclosure Act of 2009. As
published, the final rule inadvertently omits the revisions to
redesignated Sec. 226.58(b)(7) and the revised commentary to Sec.
226.55(b)(6). In addition, the published final rule misprints comment
51(b)(2)-1 and contains other typographical errors.
Accordingly, in the final rule, FR Doc. 2011-8843, published on
April 25, 2011, (76 FR 22948) make the following corrections:
PART 226--[CORRECTED]
Sec. 226.9 [Corrected]
0
1. On page 23000, in the third column, line 55, correct amendatory
instruction 7 to read as follows:
Section 226.9 is amended by adding paragraph (b)(3)(iii) and by
revising paragraphs (c)(2)(i)A), (c)(2)(ii), (c)(2)(iii),
(c)(2)(iv)(A)(1), (c)(2)(iv)(B), (c)(2)(iv)(D), (c)(2)(v)(B)(1) through
(3), (c)(2)(v)(C), and (c)(2)(v)(D).
Sec. 226.58 [Corrected]
0
2. On page 23003, in the third column, line 48, correct amendatory
instruction 14.B. to read as follows:
B. Redesignating paragraphs (b)(4) through (7) as paragraphs (b)(5)
through (8), and revising redesignated paragraph (b)(7);
0
3. On page 23004, in the first column, line 24, in Sec. 226.58,
correct paragraph (b) by adding paragraph (b)(7) to read as follows:
(7) Pricing information. For purposes of this section, ``pricing
information'' means the information listed in Sec. 226.6(b)(2)(i)
through (b)(2)(xii). Pricing information does not include temporary or
promotional rates and terms or rates and terms that apply only to
protected balances.
* * * * *
Supplement I to Part 226 [Corrected]
0
4. On page 23016, in the first column, line 3, italicize the heading
``9(c) Change in terms.''
0
5. On page 23021, in the third column, line 29, correct paragraph 1. of
51(b)(2) to read as follows:
1. Credit line request by joint accountholder aged 21 or older.
The requirement under Sec. 226.51(b)(2) that a cosigner, guarantor,
or joint accountholder for a credit card account opened pursuant to
Sec. 226.51(b)(1)(ii) must agree in writing to assume liability for
the increase before a credit line is increased, does not apply if
the cosigner, guarantor or joint accountholder who is at least 21
years old initiates the request for the increase.
0
6. On page 23034, in the first column, line 24, correct 55(b) by adding
55(b)(6) to read as follows:
55(b)(6) Servicemembers Civil Relief Act exception.
1. Rate, fee, or charge that does not exceed rate, fee, or
charge that applied before decrease. When a rate or a fee or charge
subject to Sec. 226.55 has been decreased pursuant to 50 U.S.C.
app. 527 or a similar federal or state statute or regulation, Sec.
226.55(b)(6) permits the card issuer to increase the rate, fee, or
charge once 50 U.S.C. app. 527 or the similar statute or regulation
no longer applies. However, Sec. 226.55(b)(6) prohibits the card
issuer from applying to any transactions that occurred prior to the
decrease a rate, fee, or charge that exceeds the rate, fee, or
charge that applied to those transactions prior to the decrease
(except to the extent permitted by one of the other exceptions in
Sec. 226.55(b)). For example, if a temporary rate applied prior to
a decrease in rate pursuant to 50 U.S.C. app. 527 and the temporary
rate expired during the period that 50 U.S.C. app. 527 applied to
the account, the card issuer may apply an increased rate once 50
U.S.C. app. 527 no longer applies to the extent consistent with
Sec. 226.55(b)(1). Similarly, if a variable rate applied prior to a
decrease in rate pursuant to 50 U.S.C. app. 527, the card issuer may
apply any increase in that variable rate once 50 U.S.C. app. 527 no
longer applies to the extent consistent with Sec. 226.55(b)(2).
2. Decreases in rates, fees, and charges to amounts consistent
with 50 U.S.C. app. 527 or similar statute or regulation. If a card
issuer deceases an annual percentage rate or a fee or charge subject
to Sec. 226.55 pursuant to 50 U.S.C. app. 527 or a similar federal
or state statute or regulation and if the card issuer also decreases
other rates, fees, or charges (such as the rate that applies to new
transactions) to amounts that are consistent with 50 U.S.C. app. 527
or a similar federal or state statute or regulation, the card issuer
may increase those rates, fees, and charges consistent with Sec.
226.55(b)(6).
3. Example. Assume that on December 31 of year one the annual
percentage rate that applies to a $5,000 balance on a credit card
account is a variable rate that is determined by adding a margin of
10 percentage points to a publicly-available index that is not under
the card issuer's control. The account is also subject to a monthly
maintenance fee of $10. On January 1 of year two, the card issuer
reduces the rate that applies to the $5,000 balance to a non-
variable rate of 6% and ceases to impose the $10 monthly maintenance
fee and other fees (including late payment fees) pursuant to 50
U.S.C. app. 527. The card issuer also decreases the rate that
applies to new transactions to 6%. During year two, the consumer
uses the account for $1,000 in new transactions. On January 1 of
year three, 50 U.S.C. app. 527 ceases to apply and the card issuer
provides a notice pursuant to Sec. 226.9(c) informing the consumer
that on February 15 of year three the variable rate determined using
the 10-point margin will apply to any remaining portion of the
$5,000 balance and to any remaining portion of the $1,000 balance.
The notice also states that the $10 monthly maintenance fee and
other fees (including late payment fees) will resume on February 15
of year three. Consistent with Sec. 226.9(c)(2)(iv)(B), the card
issuer is not required to provide a right to reject in these
[[Page 31222]]
circumstances. On February 15 of year three, Sec. 226.55(b)(6)
permits the card issuer to begin accruing interest on any remaining
portion of the $5,000 and $1,000 balances at the variable rate
determined using the 10-point margin and to resume imposing the $10
monthly maintenance fee and other fees (including late payment
fees).
By order of the Board of Governors of the Federal Reserve
System, acting through the Secretary under delegated authority, May
19, 2011.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 2011-12795 Filed 5-27-11; 8:45 am]
BILLING CODE 6210-01-P
