US Laws, Codes, Statutes & Cases

From the U.S. Code Online via GPO Access
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[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 15USC1604]

 
                      TITLE 15--COMMERCE AND TRADE
 
                 CHAPTER 41--CONSUMER CREDIT PROTECTION
 
              SUBCHAPTER I--CONSUMER CREDIT COST DISCLOSURE
 
                       Part A--General Provisions
 
Sec. 1604. Disclosure guidelines


(a) Promulgation, contents, etc., of regulations

    The Board shall prescribe regulations to carry out the purposes of 
this subchapter. Except in the case of a mortgage referred to in section 
1602(aa) of this title, these regulations may contain such 
classifications, differentiations, or other provisions, and may provide 
for such adjustments and exceptions for any class of transactions, as in 
the judgment of the Board are necessary or proper to effectuate the 
purposes of this subchapter, to prevent circumvention or evasion 
thereof, or to facilitate compliance therewith.

(b) Model disclosure forms and clauses; publication, criteria, 
        compliance, etc.

    The Board shall publish model disclosure forms and clauses for 
common transactions to facilitate compliance with the disclosure 
requirements of this subchapter and to aid the borrower or lessee in 
understanding the transaction by utilizing readily understandable 
language to simplify the technical nature of the disclosures. In 
devising such forms, the Board shall consider the use by creditors or 
lessors of data processing or similar automated equipment. Nothing in 
this subchapter may be construed to require a creditor or lessor to use 
any such model form or clause prescribed by the Board under this 
section. A creditor or lessor shall be deemed to be in compliance with 
the disclosure provisions of this subchapter with respect to other than 
numerical disclosures if the creditor or lessor (1) uses any appropriate 
model form or clause as published by the Board, or (2) uses any such 
model form or clause and changes it by (A) deleting any information 
which is not required by this subchapter, or (B) rearranging the format, 
if in making such deletion or rearranging the format, the creditor or 
lessor does not affect the substance, clarity, or meaningful sequence of 
the disclosure.

(c) Procedures applicable for adoption of model forms and clauses

    Model disclosure forms and clauses shall be adopted by the Board 
after notice duly given in the Federal Register and an opportunity for 
public comment in accordance with section 553 of title 5.

(d) Effective dates of regulations containing new disclosure 
        requirements

    Any regulation of the Board, or any amendment or interpretation 
thereof, requiring any disclosure which differs from the disclosures 
previously required by this part, part D, or part E of this subchapter 
or by any regulation of the Board promulgated thereunder shall have an 
effective date of that October 1 which follows by at least six months 
the date of promulgation, except that the Board may at its discretion 
take interim action by regulation, amendment, or interpretation to 
lengthen the period of time permitted for creditors or lessors to adjust 
their forms to accommodate new requirements or shorten the length of 
time for creditors or lessors to make such adjustments when it makes a 
specific finding that such action is necessary to comply with the 
findings of a court or to prevent unfair or deceptive disclosure 
practices. Notwithstanding the previous sentence, any creditor or lessor 
may comply with any such newly promulgated disclosure requirements prior 
to the effective date of the requirements.

(f) \1\ Exemption authority
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    \1\ So in original. No subsec. (e) has been enacted.
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                           (1) In general

        The Board may exempt, by regulation, from all or part of this 
    subchapter any class of transactions, other than transactions 
    involving any mortgage described in section 1602(aa) of this title, 
    for which, in the determination of the Board, coverage under all or 
    part of this subchapter does not provide a meaningful benefit to 
    consumers in the form of useful information or protection.

                    (2) Factors for consideration

        In determining which classes of transactions to exempt in whole 
    or in part under paragraph (1), the Board shall consider the 
    following factors and publish its rationale at the time a proposed 
    exemption is published for comment:
            (A) The amount of the loan and whether the disclosures, 
        right of rescission, and other provisions provide a benefit to 
        the consumers who are parties to such transactions, as 
        determined by the Board.
            (B) The extent to which the requirements of this subchapter 
        complicate, hinder, or make more expensive the credit process 
        for the class of transactions.
            (C) The status of the borrower, including--
                (i) any related financial arrangements of the borrower, 
            as determined by the Board;
                (ii) the financial sophistication of the borrower 
            relative to the type of transaction; and
                (iii) the importance to the borrower of the credit, 
            related supporting property, and coverage under this 
            subchapter, as determined by the Board;

            (D) whether the loan is secured by the principal residence 
        of the consumer; and
            (E) whether the goal of consumer protection would be 
        undermined by such an exemption.

(g) Waiver for certain borrowers

                           (1) In general

        The Board, by regulation, may exempt from the requirements of 
    this subchapter certain credit transactions if--
            (A) the transaction involves a consumer--
                (i) with an annual earned income of more than $200,000; 
            or
                (ii) having net assets in excess of $1,000,000 at the 
            time of the transaction; and

            (B) a waiver that is handwritten, signed, and dated by the 
        consumer is first obtained from the consumer.

                    (2) Adjustments by the Board

        The Board, at its discretion, may adjust the annual earned 
    income and net asset requirements of paragraph (1) for inflation.

(Pub. L. 90-321, title I, Sec. 105, May 29, 1968, 82 Stat. 148; Pub. L. 
96-221, title VI, Sec. 605, Mar. 31, 1980, 94 Stat. 170; Pub. L. 103-
325, title I, Sec. 152(e)(2)(A), Sept. 23, 1994, 108 Stat. 2194; Pub. L. 
104-208, div. A, title II, Secs. 2102(b), 2104, Sept. 30, 1996, 110 
Stat. 3009-399, 3009-401.)


                               Amendments

    1996--Subsec. (f). Pub. L. 104-208, Sec. 2102(b), added subsec. (f).
    Subsec. (g). Pub. L. 104-208, Sec. 2104, added subsec. (g).
    1994--Subsec. (a). Pub. L. 103-325 substituted ``Except in the case 
of a mortgage referred to in section 1602(aa) of this title, these'' for 
``These'' in second sentence.
    1980--Pub. L. 96-221 designated existing provisions as subsec. (a) 
and added subsecs. (b) to (d).


                    Effective Date of 1980 Amendment

    Amendment by Pub. L. 96-221 effective on expiration of two years and 
six months after Mar. 31, 1980, 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 section 625 of 
Pub. L. 96-221, set out as a note under section 1602 of this title.