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: 15USC1665a]

 
                      TITLE 15--COMMERCE AND TRADE
 
                 CHAPTER 41--CONSUMER CREDIT PROTECTION
 
              SUBCHAPTER I--CONSUMER CREDIT COST DISCLOSURE
 
                       Part C--Credit Advertising
 
Sec. 1665a. Use of annual percentage rate in oral disclosures; 
        exceptions
        
     In responding orally to any inquiry about the cost of credit, a 
creditor, regardless of the method used to compute finance charges, 
shall state rates only in terms of the annual percentage rate, except 
that in the case of an open end credit plan, the periodic rate also may 
be stated and, in the case of an other than open end credit plan where a 
major component of the finance charge consists of interest computed at a 
simple annual rate, the simple annual rate also may be stated. The Board 
may, by regulation, modify the requirements of this section or provide 
an exception from this section for a transaction or class of 
transactions for which the creditor cannot determine in advance the 
applicable annual percentage rate.

(Pub. L. 90-321, title I, Sec. 146, as added Pub. L. 93-495, title IV, 
Sec. 401(a), Oct. 28, 1974, 88 Stat. 1517; amended Pub. L. 96-221, title 
VI, Sec. 623(a), Mar. 31, 1980, 94 Stat. 185.)


                               Amendments

    1980--Pub. L. 96-221 substituted provisions relating to use of 
annual percentage rate in oral disclosures by creditors, for provisions 
setting forth requirements for advertisements concerning consumer credit 
repayable in more than four installments.


                    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

    Section 416 of title IV of Pub. L. 93-495 provided that: ``This 
title [enacting this section and sections 1614 and 1645 of this title, 
amending sections 1603, 1607, 1635, 1637, 1640, and 1644 of this title, 
and enacting provision set out as a note under section 1640 of this 
title] takes effect upon the date of its enactment [Oct. 28, 1974], 
except that sections 409 [amending section 1631 of this title] and 411 
[amending section 1637 of this title] take effect upon the expiration of 
one year after the date of its enactment [Oct. 28, 1974].''