US Laws, Codes, Statutes & Cases

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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: 15USC1631]

 
                      TITLE 15--COMMERCE AND TRADE
 
                 CHAPTER 41--CONSUMER CREDIT PROTECTION
 
              SUBCHAPTER I--CONSUMER CREDIT COST DISCLOSURE
 
                       Part B--Credit Transactions
 
Sec. 1631. Disclosure requirements


(a) Duty of creditor or lessor respecting one or more than one obligor

    Subject to subsection (b) of this section, a creditor or lessor 
shall disclose to the person who is obligated on a consumer lease or a 
consumer credit transaction the information required under this 
subchapter. In a transaction involving more than one obligor, a creditor 
or lessor, except in a transaction under section 1635 of this title, 
need not disclose to more than one of such obligors if the obligor given 
disclosure is a primary obligor.

(b) Creditor or lessor required to make disclosure

    If a transaction involves one creditor as defined in section 1602(f) 
of this title, or one lessor as defined in section 1667(3) of this 
title, such creditor or lessor shall make the disclosures. If a 
transaction involves more than one creditor or lessor, only one creditor 
or lessor shall by required to make the disclosures. The Board shall by 
regulation specify which creditor or lessor shall make the disclosures.

(c) Estimates as satisfying statutory requirements; basis of disclosure 
        for per diem interest

    The Board may provide by regulation that any portion of the 
information required to be disclosed by this subchapter may be given in 
the form of estimates where the provider of such information is not in a 
position to know exact information. In the case of any consumer credit 
transaction a portion of the interest on which is determined on a per 
diem basis and is to be collected upon the consummation of such 
transaction, any disclosure with respect to such portion of interest 
shall be deemed to be accurate for purposes of this subchapter if the 
disclosure is based on information actually known to the creditor at the 
time that the disclosure documents are being prepared for the 
consummation of the transaction.

(d) Tolerances for numerical disclosures

    The Board shall determine whether tolerances for numerical 
disclosures other than the annual percentage rate are necessary to 
facilitate compliance with this subchapter, and if it determines that 
such tolerances are necessary to facilitate compliance, it shall by 
regulation permit disclosures within such tolerances. The Board shall 
exercise its authority to permit tolerances for numerical disclosures 
other than the annual percentage rate so that such tolerances are narrow 
enough to prevent such tolerances from resulting in misleading 
disclosures or disclosures that circumvent the purposes of this 
subchapter.

(Pub. L. 90-321, title I, Sec. 121, May 29, 1968, 82 Stat. 152; Pub. L. 
93-495, title III, Sec. 307(c), (d), title IV, Sec. 409, Oct. 28, 1974, 
88 Stat. 1516, 1519; Pub. L. 94-205, Sec. 11, Jan. 2, 1976, 89 Stat. 
1159; Pub. L. 96-221, title VI, Sec. 611, Mar. 31, 1980, 94 Stat. 174; 
Pub. L. 104-29, Sec. 3(b), Sept. 30, 1995, 109 Stat. 273.)


                               Amendments

    1995--Subsec. (c). Pub. L. 104-29 inserted at end ``In the case of 
any consumer credit transaction a portion of the interest on which is 
determined on a per diem basis and is to be collected upon the 
consummation of such transaction, any disclosure with respect to such 
portion of interest shall be deemed to be accurate for purposes of this 
subchapter if the disclosure is based on information actually known to 
the creditor at the time that the disclosure documents are being 
prepared for the consummation of the transaction.''
    1980--Subsec. (a). Pub. L. 96-221 substituted provisions respecting 
to which obligor duty of creditor or lessor, where one or more than one 
obligor is involved, is owed, for provisions setting forth clear and 
conspicuous disclosure requirements for creditors to persons extended 
consumer credit.
    Subsec. (b). Pub. L. 96-221 substituted provisions relating to 
disclosure requirements of creditor or lessor, for provisions relating 
to statement of information where more than one obligor is involved.
    Subsecs. (c), (d). Pub. L. 96-221 added subsecs. (c) and (d).
    1976--Subsec. (c). Pub. L. 94-205 struck out subsec. (c) which 
related to disclosure including a full statement of closing costs 
incurred and permitted estimates of such information where the lender 
was not in a position to know exact information.
    1974--Subsec. (a). Pub. L. 93-495, Sec. 307(c), inserted reference 
to part D of this subchapter and struck out ``and upon whom a finance 
charge is or may be imposed'' after ``extended''.
    Subsec. (b). Pub. L. 93-495, Sec. 307(d), inserted reference to part 
D of this subchapter.
    Subsec. (c). Pub. L. 93-495, Sec. 409, added subsec (c).


                    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.


                    Effective Date of 1976 Amendment

    Amendment by Pub. L. 94-205 effective Jan. 2, 1976, see section 12 
of Pub. L. 94-205, set out as a note under section 2602 of Title 12, 
Banks and Banking.


                    Effective Date of 1974 Amendment

    For effective date of amendment by section 307(c), (d) of Pub. L. 
93-495, see section 308 of Pub. L. 93-495, set out as an Effective Date 
note under section 1666 of this title.
    For effective date of amendment by section 409 of Pub. L. 93-495, 
see section 416 of Pub. L. 93-495, set out as an Effective Date note 
under section 1665a of this title.


                             Effective Date

    Section 504(b) of Pub. L. 90-321 provided in part that chapter 2 of 
title I, which enacted sections 1631 to 1641 of this title, is effective 
July 1, 1969.


                    Real Estate Settlement Procedures

    Provisions of Real Estate Settlement Procedures Act of 1974, as 
superseding provisions of subsec. (c) of this section insofar as 
applying to federally related mortgage loans, see section 2605 of Title 
12, Banks and Banking.

                  Section Referred to in Other Sections

    This section is referred to in section 1638 of this title.