Code of Massachusetts Regulations
209 CMR - DIVISION OF BANKS AND LOAN AGENCIES
Title 209 CMR 32.00 - Disclosure Of Consumer Credit Costs And Terms
GENERAL
Section 32.01 - Purpose and Scope

Universal Citation: 209 CMR 32.00 MA Code of Regs 32.01

Current through Register 1537, December 20, 2024

(1) The purpose of 209 CMR 32.00 is to promote the informed use of consumer credit by requiring disclosures about its terms and cost. 209 CMR 32.00 also gives consumers the right to cancel certain credit transactions that involve a lien on a consumer's principal dwelling, regulates certain credit card practices, and provides a means for fair and timely resolution of credit billing disputes. 209 CMR 32.00 does not generally govern charges for consumer credit, except that several provisions in 209 CMR 32.51 through 32.60 set forth special rules addressing certain charges applicable to credit card accounts under an open-end (not home secured) consumer credit plan. In addition, 209 CMR 32.00 requires a maximum interest rate to be stated in variable rate contracts secured by the consumer's dwelling, and imposes limitations on home equity plans that are subject to the requirements of 209 CMR 32.40 and mortgages that are subject to the requirements of 209 CMR 32.32. 209 CMR 32.00 prohibits certain acts or practices in connection with credit secured by a dwelling in 209 CMR 32.36, and credit secured by a consumer's principal dwelling in 209 CMR 32.35. 209 CMR 32.00 also regulates certain practices of creditors who extend private education loans as defined in 209 CMR 32.46(2)(e).

(2)

(a) In general, 209 CMR 32.00 applies to each individual or business that offers or extends credit, other than a person excluded from coverage of 209 CMR 32.01 through 32.04 by M.G.L. c. 140D or section 1029 of the Consumer Financial Protection Act of 2010, title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111-203, 124 Stat. 1376 when four conditions are met:
1. The credit is offered or extended to consumers;

2. The offering or extension of credit is done regularly;

3. The credit is subject to a finance charge or is payable by a written agreement in more than four installments; and

4. The credit is primarily for personal, family, or household purposes.

(b) If a credit card is involved, however, certain provisions apply even if the credit is not subject to a finance charge, or is not payable by a written agreement in more than four installments, or if the credit card is to be used for business purposes.

(c) In addition, certain requirements of 209 CMR 32.40 apply to persons who are not creditors but who provide applications for home equity plans to consumers.

(d) Furthermore, certain requirements of 209 CMR 32.57 apply to institutions of higher education.

(e) No person is required to provide the disclosures required by sections 128(a)(16) through (19), 128(b)(4), 129C(f)(l), 129C(g)(2) and (3), 129C(h), 129D(h), 129D(j)(l)(A), or 129D(j)(l)(B) of the Truth in Lending Act or section 4(c) of the Real Estate Settlement Procedures Act.

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