New York Codes, Rules and Regulations
Title 3 - BANKING
Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT
Part 91 - Variable Rate Retail Instalment Credit Agreements Established By Retail Sellers
Section 91.3 - Disclosures
Current through Register Vol. 46, No. 12, March 20, 2024
All disclosures required by this Part are to be made in a single, separate document, in plain language and with captioned subdivisions for the information to be disclosed. Such disclosures shall be provided by the retail seller to a customer who is to be primarily liable on the credit account prior to the date of the first transaction on the account in the case of a new account, or, in the case where an existing credit account is being amended to provide for the variable rate feature, at least 30 days prior to the effective date of the variable rate amendment. Disclosure shall be made, in any reasonable order, of the following information:
(a) an identification of the index to be used by the creditor in connection with changing the rate on the credit account, and information where the index figures will be available;
(b) disclosure of the intervals at which the creditor may change the rate on the credit account, the time(s) or date(s) at which the creditor will calculate the rate with respect to the index, and any conditions or events on which the changes in the rate are contingent;
(c) the effect that an increase in the rate on the credit account will have on the amount of the monthly payment;
(d) a hypothetical example, illustrative of the type of credit being offered, of the effect of a rate increase on monthly payments;
(e) a history of the movements in the index selected for the credit account, as further provided under section 91.4 of this Part; and
(f) the fact that the customer will receive prior notifications from the creditor of increases in the rate for the credit account, and the time periods within which the notifications will be sent.
