Enter Search TextSubmitSearch Advanced Search HOME DEPOSIT INSURANCE CONSUMER PROTECTION INDUSTRY ANALYSIS REGULATIONS & EXAMINATIONS ASSET SALES NEWS & EVENTS ABOUT FDIC

		Home > Regulation & Examinations > Laws & Regulations > FDIC Law, Regulations, Related Acts

FDIC Law, Regulations, Related Acts

[Main Tabs]     [Table of Contents - 6500]     [Index]     [Previous Page]     [Next Page]     [Search] 6500 - FDIC Consumer Protection CHAPTER 2—CREDIT TRANSACTIONS     Sec.     121.    General requirement of disclosure.     122.    Form of disclosure; additional information.     123.    Exemption for State-regulated transactions.     124.    Effect of subsequent occurrence.     125.    Right of rescission as to certain transactions.     126.    [Repealed].     127.    Open end consumer credit plans.     127A.    Disclosure requirements for open end consumer credit plans secured by the consumer's principal dwelling.     128.    Consumer credit not under open end credit plans.     129.    Requirements for certain mortgages.     130.    Civil liability.     131.    Liability of assignees.     132.    Issuance of credit cards.     133.    Liability of holder of credit card.     134.    Fraudulent use of credit card.     135.    Business credit cards.     136.    Dissemination of annual percentage rates.     137.    Home equity plans.     138.    Reverse mortgages.     139.    Certain limitations on liability. § 121.  General requirement of disclosure   (a)  Subject to subsection (b), 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 title. In a transaction involving more than one obligor, a creditor or lessor, except in a transaction under section 125, need not disclose to more than one of such obligors if the obligor given disclosure is a primary obligor.   (b)  If a transaction involves one creditor as defined in section 103(f), or one lessor as defined in section 181(3), such creditor or lessor shall make the disclosures. If a transaction involves more than one creditor or lessor, only one creditor or lessor shall be required to make the disclosures. The Board shall by regulation specify which creditor or lessor shall make the disclosures.   (c)  The Board may provide by regulation that any portion of the information required to be disclosed by this title 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 {{10-31-95 p.6577}}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 title 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)  The Board shall determine whether tolerances for numerical disclosures other than the annual percentage rate are necessary to facilitate compliance with this title, 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 title. [Codified to 15 U.S.C. 1631] [Source:  Section 121 of title I of the Act of May 29, 1968 (Pub. L. No. 90--321; 82 Stat. 152), effective July 1, 1969, as amended by section 307(c) and (d) of title III of the Act of October 28, 1974 (Pub. L. No. 93--495; 88 Stat. 1516), effective October 28, 1975; section 409 of title IV of the Act of October 28, 1974 (Pub. L. No. 93--495; 88 Stat. 1519), effective October 28, 1975; section 11 of the Act of January 2, 1976 (Pub. L. No. 94--205; 89 Stat. 1159), effective January 2, 1976; and section 611 of title VI of the Act of March 31, 1980 (Pub. L. No. 96--221; 94 Stat. 174), effective October 1, 1982; section 3 of the Act of September 30, 1995, (Pub. L. No. 104--29; 109 Stat. 273), effective September 30, 1995] § 122.  Form of disclosure; additional information   (a)  Information required by this title shall be disclosed clearly and conspicuously, in accordance with regulations of the Board. The terms "annual percentage rate" and "finance charge" shall be disclosed more conspicuously than other terms, data, or information provided in connection with a transaction, except information relating to the identity of the creditor. Except as provided in subsection (c), regulations of the Board need not require that disclosures pursuant to this title be made in the order set forth in this title and, except as otherwise provided, may permit the use of terminology different from that employed in this title if it conveys substantially the same meaning.   (b)  Any creditor or lessor may supply additional information or explanation with any disclosures required under chapters 4 and 5 and, except as provided in sections 127A(b)(3) and 128(b)(1), under this chapter.   (c)  Tabular Format Required for Certain Disclosures Under Section 127(c).--     (1)  IN GENERAL.--The information described in paragraphs (1)(A), (3)(B)(i)(I), (4)(A), and (4)(C)(i)(I) of section 127(c) shall be--       (A)  disclosed in the form and manner which the Board shall prescribe by regulations; and       (B)  placed in a conspicuous and prominent location on or with any written application, solicitation, or other document or paper with respect to which such disclosure is required.     (2)  TABULAR FORMAT.--       (A)  FORM OF TABLE TO BE PRESCRIBED.--In the regulations prescribed under paragraph (1)(A) of this subsection, the Board shall require that the disclosure of such information shall, to the extent the Board determines to be practicable and appropriate, be in the form of a table which--         (i)  contains clear and concise headings for each item of such information; and         (ii)  provides a clear and concise form for stating each item of information required to be disclosed under each such heading.       (B)  Board discretion in prescribing order and wording of table.--In prescribing the form of the table under subparagraph (A), the Board may--         (i)  list the items required to be included in the table in a different order than the order in which such items are set forth in paragraph (1)(A) or (4)(A) of section 127(c); and {{10-31-95 p.6578}}         (ii)  subject to subparagraph (C), employ terminology which is different than the terminology which is employed in section 127(c) if such terminology conveys substantially the same meaning.       (C)  GRACE PERIOD.--Either the heading or the statement under the heading which relates to the time period referred to in section 127(c)(1)(A)(iii) shall contain the term "grace period". [Codified to 15 U.S.C. 1632] [Source:  Section 122 of title I of the Act of May 29, 1968 (Pub. L. No. 90--321; 82 Stat. 152), effective July 1, 1969, as amended by sections 307(e) and (f) of title III of the Act of October 28, 1974 (Pub. L. No. 93--495; 88 Stat. 1516, 1517), effective October 28, 1975; section 611 of title VI of the Act of March 31, 1980 (Pub. L. No. 96--221; 94 Stat. 175), effective October 1, 1982; section 2(b) of the Act of November 3, 1988 (Pub. L. No. 100--583; 102 Stat. 2966), effective November 3, 1988; and section 2(d) of the Act of November 23, 1988 (Pub. L. No. 100--709; 102 Stat. 4731), effective November 23, 1988] § 123.  Exemption for State-regulated transactions   The Board shall by regulation exempt from the requirements of this chapter any class of credit transactions within any State if it determines that under the law of that State that class of transactions is subject to requirements substantially similar to those imposed under this chapter, and that there is adequate provision for enforcement. [Codified to 15 U.S.C. 1633] [Source:  Section 123 of title I of the Act of May 29, 1968 (Pub. L. No. 90--321; 82 Stat. 152), effective July 1, 1969] § 124.  Effect of subsequent occurrence   If information disclosed in accordance with this chapter is subsequently rendered inaccurate as the result of any act, occurrence, or agreement subsequent to the delivery of the required disclosures, the inaccuracy resulting therefrom does not constitute a violation of this chapter. [Codified to 15 U.S.C. 1634] [Source:  Section 124 of title I of the Act of May 29, 1968 (Pub. L. No. 90--321; 82 Stat. 152), effective July 1, 1969] § 125.  Right of rescission as to certain transactions   (a)  Except as otherwise provided in this section, in the case of any consumer credit transaction (including opening or increasing the credit limit for an open end credit plan) in which a security interest, including any such interest arising by operation of law, is or will be retained or acquired in any property which is used as the principal dwelling of the person to whom credit is extended, the obligor shall have the right to rescind the transaction until midnight of the third business day following the consummation of the transaction or the delivery of the information and rescission forms required under this section together with a statement containing the material disclosures required under this title, whichever is later, by notifying the creditor, in accordance with regulations of the Board, of his intention to do so. The creditor shall clearly and conspicuously disclose, in accordance with regulations of the Board, to any obligor in a transaction subject to this section the rights of the obligor under this section. The creditor shall also provide, in accordance with regulations of the Board, appropriate forms for the obligor to exercise his right to rescind any transaction subject to this section.   (b)  When an obligor exercises his right to rescind under subsection (a), he is not liable for any finance or other charge, and any security interest given by the obligor, including any such interest arising by operation of law, becomes void upon such a rescission. Within 20 days after receipt of a notice of rescission, the creditor shall return to the obligor any money or property given as earnest money, downpayment, or otherwise, and shall take any action {{10-31-95 p.6579}}necessary or appropriate to reflect the termination of any security interest created under the transaction. If the creditor has delivered any property to the obligor, the obligor may retain possession of it. Upon the performance of the creditor's obligations under this section, the obligor shall tender the property to the creditor, except that if return of the property in kind would be impracticable or inequitable, the obligor shall tender its reasonable value. Tender shall be made at the location of the property or at the residence of the obligor, at the option of the obligor. If the creditor does not take possession of the property within 20 days after tender by the obligor, ownership of the property vests in the obligor without obligation on his part to pay for it. The procedures prescribed by this subsection shall apply except when otherwise ordered by a court.   (c)  Notwithstanding any rule of evidence, written acknowledgment of receipt of any disclosures required under this title by a person to whom information, forms, and a statement is required to be given pursuant to this section does no more than create a rebuttable presumption of delivery thereof.   (d)  The Board may, if it finds that such action is necessary in order to permit homeowners to meet bona fide personal financial emergencies, prescribe regulations authorizing the modification or waiver of any rights created under this section to the extent and under the circumstances set forth in those regulations.   (e)  This section does not apply to--       (1)  a residential mortgage transaction as defined in section 103(w);       (2)  a transaction which constitutes a refinancing or consolidation (with no new advances) of the principal balance then due and any accrued and unpaid finance charges of an existing extension of credit by the same creditor secured by an interest in the same property;       (3)  a transaction in which an agency of a State is the creditor; or       (4)  advances under a preexisting open end credit plan if a security interest has already been retained or acquired and such advances are in accordance with a previously established credit limit for such plan.   (f)  An obligor's right of rescission shall expire three years after the date of consummation of the transaction or upon the sale of the property, whichever occurs first, notwithstanding the fact that the information and forms required under this section or any other disclosures required under this chapter have not been delivered to the obligor, except that if (1) any agency empowered to enforce the provisions of this title institutes a proceeding to enforce the provisions of this section within three years after the date of consummation of the transaction, (2) such agency finds a violation of section 125, and (3) the obligor's right to rescind is based in whole or in part on any matter involved in such proceeding, then the obligor's right of rescission shall expire three years after the date of consummation of the transaction or upon the earlier sale of the property, or upon the expiration of one year following the conclusion of the proceeding, or any judicial review or period for judicial review thereof, whichever is later.   (g)  In any action in which it is determined that a creditor has violated this section, in addition to rescission the court may award relief under section 130 for violations of this title not relating to the right to rescind.   (h)  LIMITATION ON RESCISSION.--An obligor shall have no rescission rights arising solely from the form of written notice used by the creditor to inform the obligor of the rights of the obligor under this section, if the creditor provided the obligor the appropriate form of written notice published and adopted by the Board, or a comparable written notice of the rights of the obligor, that was properly completed by the creditor, and otherwise complied with all other requirements of this section regarding notice.   (i)  RESCISSION RIGHTS IN FORECLOSURE.--     (1)  IN GENERAL.--Notwithstanding section 139, and subject to the time period provided in subsection (f), in addition to any other right of rescission available under this section for a transaction, after the initiation of any judicial or nonjudicial foreclosure process on the primary dwelling of an obligor securing an extension of credit, the obligor {{10-31-95 p.6580}}shall have a right to rescind the transaction equivalent to other rescission rights provided by this section, if--       (A)  a mortgage broker fee is not included in the finance charge in accordance with the laws and regulations in effect at the time the consumer credit transaction was consummated; or       (B)  the form of notice of rescission for the transaction is not the appropriate form of written notice published and adopted by the Board or a comparable written notice, and otherwise complied with all the requirements of this section regarding notice.     (2)  TOLERANCE FOR DISCLOSURES.--Notwithstanding section 106(f), and subject to the time period provided in subsection (f), for the purposes of exercising any rescission rights after the initiation of any judicial or nonjudicial foreclosure process on the principal dwelling of the obligor securing an extension of credit, the disclosure of the finance charge and other disclosures affected by any finance charge shall be treated as being accurate for purposes of this section if the amount disclosed as the finance charge does not vary from the actual finance charge by more than $35 or is greater than the amount required to be disclosed under this title.     (3)  RIGHT OF RECOUPMENT UNDER STATE LAW.--Nothing in this subsection affects a consumer's right of rescission in recoupment under State law.     (4)  APPLICABILITY.--This subsection shall apply to all consumer credit transactions in existence or consummated on or after the date of the enactment of the Truth in Lending Act Amendments of 1995. [Codified to 15 U.S.C. 1635] [Source:  Section 125 of title I of the Act of May 29, 1968 (Pub. L. No. 90--321; 82 Stat. 152), effective July 1, 1969, as amended by sections 404, 405, and 412 of title IV of the Act of October 28, 1974 (Pub. L. No. 93--495; 88 Stat. 1517, 1519), effective October 28, 1974; section 612 of title VI of the Act of March 31, 1980 (Pub. L. No. 96--221; 94 Stat. 175), effective October 1, 1982; and section 205 of title II of the Act of October 17, 1984 (Pub. L. No. 98--479; 98 Stat. 2234), effective October 17, 1984; section 5 and 8 of the Act of September 30, 1995 (Pub. L. No. 104--29; 109 Stat. 274 and 275, respectively), effective September 30, 1995] § 126.  [Repealed] [Source:  Section 126 of title I of the Act of May 29, 1968 (Pub. L. No. 90--321; 82 Stat. 153), effective July 1, 1969; as repealed by section 614 of title VI of the Act of March 31, 1980 (Pub. L. No. 96--221; 94 Stat. 180), effective October 1, 1982] § 127.  Open end consumer credit plans   (a)  Before opening any account under an open end consumer credit plan, the creditor shall disclose to the person to whom credit is to be extended each of the following items, to the extent applicable:     (1)  The conditions under which a finance charge may be imposed, including the time period (if any) within which any credit extended may be repaid without incurring a finance charge, except that the creditor may, at his election and without disclosure, impose no such finance charge if payment is received after the termination of such time period. If no such time period is provided, the creditor shall disclose such fact.     (2)  The method of determining the balance upon which a finance charge will be imposed.     (3)  The method of determining the amount of the finance charge, including any minimum or fixed amount imposed as a finance charge.     (4)  Where one or more periodic rates may be used to compute the finance charge, each such rate, the range of balances to which it is applicable, and the corresponding nominal annual percentage rate determined by multiplying the periodic rate by the number of periods in a year. {{6-30-05 p.6580.01}}     (5)  Identification of other charges which may be imposed as part of the plan, and their method of computation, in accordance with regulations of the Board.     (6)  In cases where the credit is or will be secured, a statement that a security interest has been or will be taken in (A) the property purchased as part of the credit transaction, or (B) property not purchased as part of the credit transaction identified by item or type.     (7)  A statement, in a form prescribed by regulations of the Board of the protection provided by sections 161 and 170 to an obligor and the creditor's responsibilities under sections 162 and 170. With respect to one billing cycle per calendar year, at intervals of not less than six months or more than eighteen months, the creditor shall transmit such statement to each obligor to whom the creditor is required to transmit a statement pursuant to section 127(b) for such billing cycle.     (8)  In the case of any account under an open end consumer credit plan which provides for any extension of credit which is secured by the consumer's principal dwelling, any information which--       (A)  is required to be disclosed under section 127A(a); and       (B)  the Board determines is not described in any other paragraph of this subsection.   (b)  The creditor of any account under an open end consumer credit plan shall transmit to the obligor, for each billing cycle at the end of which there is an outstanding balance in that account or with respect to which a finance charge is imposed, a statement setting forth each of the following items to the extent applicable:     (1)  The outstanding balance in the account at the beginning of the statement period.     (2)  The amount and date of each extension of credit during the period, and a brief identification, on or accompanying the statement of each extension of credit in a form prescribed by the Board sufficient to enable the obligor either to identify the transaction or to relate it to copies of sales vouchers or similar instruments previously furnished, except that a creditor's failure to disclose such information in accordance with this paragraph shall not be deemed a failure to comply with this chapter or this title if (A) the creditor maintains procedures reasonably adapted to procure and provide such information, and (B) the creditor responds to and treats any inquiry for clarification or documentation as a billing error and an erroneously billed amount under section 161. In lieu of complying with the requirements of the previous sentence, in the case of any transaction in which the creditor and seller are the same person, as defined by the Board, and such person's open end credit plan has fewer than 15,000 accounts, the creditor may elect to provide only the amount and date of each extension of credit during the period and the seller's name and location where the transaction took place if (A) a brief identification of the transaction has been previously furnished, and (B) the creditor responds to and treats any inquiry for clarification or documentation as a billing error and an erroneously billed amount under section 161.     (3)  The total amount credited to the account during the period.     (4)  The amount of any finance charge added to the account during the period, itemized to show the amounts, if any, due to the application of percentage rates and the amount, if any, imposed as a minimum or fixed charge.     (5)  Where one or more periodic rates may be used to compute the finance charge, each such rate, the range of balances to which it is applicable, and, unless the annual percentage rate (determined under section 107(a)(2)) is required to be disclosed pursuant to paragraph (6), the corresponding nominal annual percentage rate determined by multiplying the periodic rate by the number of periods in a year.     (6)  Where the total finance charge exceeds 50 cents for a monthly or longer billing cycle, or the pro rata part of 50 cents for a billing cycle shorter than monthly, the total finance charge expressed as an annual percentage rate (determined under section 107(a)(2)), except that if the finance charge is the sum of two or more products of a rate times a portion of the balance, the creditor may, in lieu of disclosing a single rate for the total charge, disclose each such rate expressed as an annual percentage rate, and the part of the balance to which it is applicable.     (7)  The balance on which the finance charge was computed and a statement of how the balance was determined. If the balance is determined without first deducting all credits during the period, that fact and the amount of such payments shall also be disclosed.     (8)  The outstanding balance in the account at the end of the period. {{6-30-05 p.6580.02}}     (9)  The date by which or the period (if any) within which, payment must be made to avoid additional finance charges, except that the creditor may, at his election and without disclosure, impose no such additional finance charge if payment is received after such date or the termination of such period.     (10)  The address to be used by the creditor for the purpose of receiving billing inquiries from the obligor.     (11)(A)  In the case of an open end credit plan that requires a minimum monthly payment of not more than 4 percent of the balance on which finance charges are accruing, the following statement, located on the front of the billing statement, disclosed clearly and conspicuously: "Minimum Payment Warning: Making only the minimum payment will increase the interest you pay and the time it takes to repay your balance. For example, making only the typical 2% minimum monthly payment on a balance of $1,000 at an interest rate of 17% would take 88 months to repay the balance in full. For an estimate of the time it would take to repay your balance, making only minimum payments, call this toll-free number: ____________________________________________ (the blank space to be filled in by the creditor)."       (B)  In the case of an open and credit plan that requires a minimum monthly payment of more than 4 percent of the balance on which finance charges are accruing, the following statement, in a prominent location on the front of the billing statement, disclosed clearly and conspicuously: "Minimum Payment Warning: Making only the required minimum payment will increase the interest you pay and the time it takes to repay your balance. Making a typical 5% minimum monthly payment on a balance of $300 at an interest rate of 17% would take 24 months to repay the balance in full. For an estimate of the time it would take to repay your balance, making only minimum monthly payments, call the toll-free number: ____________________________________________ (the blank space to be filled in by the creditor)."       (C)  Notwithstanding subparagraphs (A) and (B), in the case of a creditor with respect to which compliance with this title is enforced by the Federal Trade Commission, the following statement, in a prominent location on the front of the billing statement, disclosed clearly and conspicuously: "Minimum Payment Warning: Making only the required minimum payment will increase the interest you pay and the time it takes to repay your balance. For example, making only the typical 5% minimum monthly payment on a balance of $300 at an interest rate of 17% would take 24 months to repay the balance in full. For an estimate of the time it would take to repay your balance, making only minimum monthly payments, call the Federal Trade Commission at this toll-free number: ____________________________________________ (the blank space to be filled in by the creditor)." A creditor who is subject to this subparagraph shall not be subject to subparagraph (A) or (B).       (D)  Notwithstanding subparagraph (A), (B), or (C), in complying with any such subparagraph, a creditor may substitute an example based on an interest rate that is greater than 17 percent. Any creditor that is subject to subparagraph (B) may elect to provide the disclosure required under subparagraph (A) in lieu of the disclosure required under subparagraph (B).       (E)  The Board shall, by rule, periodically recalculate, as necessary, the interest rate and repayment period under subparagraphs (A), (B), and (C).       (F)(i)  The toll-free telephone number disclosed by a creditor or the Federal Trade Commission under subparagraph (A), (B), or (G), as appropriate, may be a toll-free telephone number established and maintained by the creditor or the Federal Trade Commission, as appropriate, or may be a toll-free telephone number established and maintained by a third party for use by the creditor or multiple creditors or the Federal Trade Commission, as appropriate. The toll-free telephone number may connect consumers to an automated device through which consumers may obtain information described in subparagraph (A), (B), or (C), by inputting information using a touch-tone telephone or similar device, if consumers whose telephones are not equipped to use such automated device are provided the opportunity to be connected to an individual from whom the information described in subparagraph (A), (B), or (C), as applicable, may be obtained. A person that receives a request for information described in subparagraph (A), (B), or (C) from an obligor through the toll-free telephone number disclosed under subparagraph (A), (B), or (C), as applicable, shall disclose in response to such request only the information set forth in the table promulgated by the Board under subparagraph (H)(i).         (ii)(I)  The Board shall establish and maintain for a period not to exceed 24 months following the effective date of the Bankruptcy Abuse Prevention and Consumer {{6-30-05 p.6581}}Protection Act of 2005, a toll-free telephone number, or provide a toll-free telephone number established and maintained by a third party, for use by creditors that are depository institutions (as defined in section 3 of the Federal Deposit Insurance Act), including a Federal credit union or State credit union (as defined in section 101 of the Federal Credit Union Act), with total assets not exceeding $250,000,000. The toll-free telephone number may connect consumers to an automated device through which consumers may obtain information described in subparagraph (A) or (B), as applicable, by inputting information using a touch-tone telephone or similar device, if consumers whose telephones are not equipped to use such automated device are provided the opportunity to be connected to an individual from whom the information described in subparagraph (A) or (B), as applicable, may be obtained. A person that receives a request for information described in subparagraph (A) or (B) from an obligor through the toll-free telephone number disclosed under subparagraph (A) or (B), as applicable, shall disclose in response to such request only the information set forth in the table promulgated by the Board under subparagraph (H)(i). The dollar amount contained in this subclause shall be adjusted according to an indexing mechanism established by the Board.           (II)  Not later than 6 months prior to the expiration of the 24-month period referenced in subclause (I), the Board shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report on the program described in subclause (I).       (G)  The Federal Trade Commission shall establish and maintain a toll-free number for the purpose of providing to consumers the information required to be disclosed under subparagraph (C).       (H)  The Board shall--         (i)  establish a detailed table illustrating the approximate number of months that it would take to repay an outstanding balance if a consumer pays only the required minimum monthly payments and if no other advances are made, which table shall clearly present standardized information to be used to disclose the information required to be disclosed under subparagraph (A), (B), or (C), as applicable;         (ii)  establish the table required under clause (i) by assuming--           (I)  a significant number of different annual percentage rates;           (II)  a significant number of different account balances;           (III)  a significant number of different minimum payment amounts; and           (IV)  that only minimum monthly payments are made and no additional extensions of credit are obtained; and         (iii)  promulgate regulations that provide instructional guidance regarding the manner in which the information contained in the table established under clause (i) should be used in responding to the request of an obligor for any information required to be disclosed under subparagraph (A), (B), or (C).       (I)  The disclosure requirements of this paragraph do not apply to any charge card account, the primary purpose of which is to require payment of charges in full each month.       (J)  A creditor that maintains a toll-free telephone number for the purpose of providing customers with the actual number of months that it will take to repay the customer's outstanding balance is not subject to the requirements of subparagraph (A) or (B).       (K)  A creditor that maintains a toll-free telephone number for the purpose of providing customers with the actual number of months that it will take to repay an outstanding balance shall include the following statement on each billing statement: "Making only the minimum payment will increase the interest you pay and the time it takes to repay your balance. For more information, call this toll-free number:.     (12)  If a late payment fee is to be imposed due to the failure of the obligor to make payment on or before a required payment due date, the following shall be stated clearly and conspicuously on the billing statement:       (A)  The date on which that payment is due or, if different, the earliest date on which a late payment fee may be charged.       (B)  The amount of the late payment fee to be imposed if payment is made after such date.   (c)  Disclosure in Credit and Charge Card Applications and Solicitations.-- {{6-30-05 p.6582}}     (1)  DIRECT MAIL APPLICATIONS AND SOLICITATIONS.--       (A)  INFORMATION IN TABULAR FORMAT.--Any application to open a credit card account for any person under an open end consumer credit plan, or a solicitation to open such an account without requiring an application, that is mailed to consumers shall disclose the following information, subject to subsection (e) and section 122(c):         (i)  ANNUAL PERCENTAGE RATES.--           (I)  Each annual percentage rate applicable to extensions of credit under such credit plan.           (II)  Where an extension of credit is subject to a variable rate, the fact that the rate is variable, the annual percentage rate in effect at the time of the mailing, and how the rate is determined.           (III)  Where more than one rate applies, the range of balances to which each rate applies.         (ii)  ANNUAL AND OTHER FEES.--           (I)  Any annual fee, other periodic fee, or membership fee imposed for the issuance or availability of a credit card, including any account maintenance fee or other charge imposed based on activity or inactivity for the account during the billing cycle.           (II)  Any minimum finance charge imposed for each period during which any extension of credit which is subject to a finance charge is outstanding.           (III)  Any transaction charge imposed in connection with use of the card to purchase goods or services.         (iii)  GRACE PERIOD.--           (I)  The date by which or the period within which any credit extended under such credit plan for purchases of goods or services must be repaid to avoid incurring a finance charge, and, if no such period is offered, such fact shall be clearly stated.           (II)  If the length of such "grace period" varies, the card issuer may disclose the range of days in the grace period, the minimum number of days in the grace period, or the average number of days in the grace period, if the disclosure is identified as such.         (iv)  BALANCE CALCULATION METHOD.--           (I)  The name of the balance calculation method used in determining the balance on which the finance charge is computed if the method used has been defined by the Board, or a detailed explanation of the balance calculation method used if the method has not been so defined.           (II)  In prescribing regulations to carry out this clause, the Board shall define and name not more than the 5 balance calculation methods determined by the Board to be the most commonly used methods.       (B)  OTHER INFORMATION.--In addition to the information required to be disclosed under subparagraph (A), each application or solicitation to which such subparagraph applies shall disclose clearly and conspicuously the following information, subject to subsections (e) and (f):         (i)  CASH ADVANCE FEE.--Any fee imposed for an extension of credit in the form of cash.         (ii)  LATE FEE.--Any fee imposed for a late payment.         (iii)  OVER-THE-LIMIT FEE.--Any fee imposed in connection with an extension of credit in excess of the amount of credit authorized to be extended with respect to such account.     (2)  TELEPHONE SOLICITATIONS.--       (A)  IN GENERAL.--In any telephone solicitation to open a credit card account for any person under an open end consumer credit plan, the person making the solicitation shall orally disclose the information described in paragraph (1)(A).       (B)  EXCEPTION.--Subparagraph (A) shall not apply to any telephone solicitation if--         (i)  the credit card issuer--           (I)  does not impose any fee described in paragraph (1)(A)(ii)(I); or           (II)  does not impose any fee in connection with telephone solicitations unless the consumer signifies acceptance by using the card; {{6-30-05 p.6583}}         (ii)  the card issuer discloses clearly and conspicuously in writing the information described in paragraph (1) within 30 days after the consumer requests the card, but in no event later than the date of delivery of the card; and         (iii)  the card issuer discloses clearly and conspicuously that the consumer is not obligated to accept the card or account and the consumer will not be obligated to pay any of the fees or charges disclosed unless the consumer elects to accept the card or account by using the card.     (3)  APPLICATIONS AND SOLICITATIONS BY OTHER MEANS.--       (A)  IN GENERAL.--Any application to open a credit card account for any person under an open end consumer credit plan, and any solicitation to open such an account without requiring an application, that is made available to the public or contained in catalogs, magazines, or other publications shall meet the disclosure requirements of subparagraph (B), (C), or (D).       (B)  SPECIFIC INFORMATION.--An application or solicitation described in subparagraph (A) meets the requirement of this subparagraph if such application or solicitation contains--         (i)  the information--           (I)  described in paragraph (1)(A) in the form required under section 122(c) of this chapter, subject to subsection (e), and           (II)  described in paragraph (1)(B) in a clear and conspicuous form, subject to subsections (e) and (f);         (ii)  a statement, in a conspicuous and prominent location on the application or solicitation, that--           (I)  the information is accurate as of the date the application or solicitation was printed;           (II)  the information contained in the application or solicitation is subject to change after such date; and           (III)  the applicant should contact the creditor for information on any change in the information contained in the application or solicitation since it was printed;         (iii)  a clear and conspicuous disclosure of the date the application or solicitation was printed; and         (iv)  a disclosure, in a conspicuous and prominent location on the application or solicitation, of a toll free telephone number or a mailing address at which the applicant may contact the creditor to obtain any change in the information provided in the application or solicitation since it was printed.       (C)  GENERAL INFORMATION WITHOUT ANY SPECIFIC TERM.--An application or solicitation described in subparagraph (A) meets the requirement of this subparagraph if such application or solicitation--         (i)  contains a statement, in a conspicuous and prominent location on the application or solicitation, that--           (I)  there are costs associated with the use of credit cards; and           (II)  the applicant may contact the creditor to request disclosure of specific information of such costs by calling a toll free telephone number or by writing to an address, specified in the application;         (ii)  contains a disclosure, in a conspicuous and prominent location on the application or solicitation, of a toll free telephone number and a mailing address at which the applicant may contact the creditor to obtain such information; and         (iii)  does not contain any of the items described in paragraph (1).       (D)  Applications or solicitations containing subsection (a) disclosures.--An application or solicitation meets the requirement of this subparagraph if it contains, or is accompanied by--         (i)  the disclosures required by paragraphs (1) through (6) of subsection (a);         (ii)  the disclosures required by subparagraphs (A) and (B) of paragraph (1) of this subsection included clearly and conspiciously (except that the provisions of section 122(c) shall not apply); and         (iii)  a toll free telephone number or a mailing address at which the applicant may contact the creditor to obtain any change in the information provided. {{6-30-05 p.6584}}       (E)  PROMPT RESPONSE TO INFORMATION REQUESTS.--Upon receipt of a request for any of the information referred to in subparagraph (B), (C), or (D), the card issuer or the agent of such issuer shall promptly disclose all of the information described in paragraph (1).     (4)  CHARGE CARD APPLICATIONS AND SOLICITATIONS.--       (A)  IN GENERAL.--Any application or solicitation to open a charge card account shall disclose clearly and conspicuously the following information in the form required by section 122(c) of this chapter, subject to subsection (e):         (i)  Any annual fee, other periodic fee, or membership fee imposed for the issuance or availability of the charge card, including any account maintenance fee or other charge imposed based on activity or inactivity for the account during the billing cycle.         (ii)  Any transaction charge imposed in connection with use of the card to purchase goods or services.         (iii)  A statement that charges incurred by use of the charge card are due and payable upon receipt of a periodic statement rendered for such charge card account.       (B)  OTHER INFORMATION.--In addition to the information required to be disclosed under subparagraph (A), each written application or solicitation to which such subparagraph applies shall disclose clearly and conspicuously the following information, subject to subsections (e) and (f):         (i)  CASH ADVANCE FEE.--Any fee imposed for an extension of credit in the form of cash.         (ii)  LATE FEE.--Any fee imposed for a late payment.         (iii)  OVER-THE-LIMIT FEE.--Any fee imposed in connection with an extension of credit in excess of the amount of credit authorized to be extended with respect to such account.       (C)  APPLICATIONS AND SOLICITATIONS BY OTHER MEANS.--Any application to open a charge card account, and any solicitation to open such an account without requiring an application, that is made available to the public or contained in catalogs, magazines, or other publications shall contain--         (i)  the information--           (I)  described in subparagraph (A) in the form required under section 122(c) of this chapter, subject to subsection (e), and           (II)  described in subparagraph (B) in a clear and conspicuous form, subject to subsections (e) and (f);         (ii)  a statement, in a conspicuous and prominent location on the application or solicitation, that--           (I)  the information is accurate as of the date the application or solicitation was printed;           (II)  the information contained in the application or solicitation is subject to change after such date; and           (III)  the applicant should contact the creditor for information on any change in the information contained in the application or solicitation since it was printed;         (iii)  a clear and conspicuous disclosure of the date the application or solicitation was printed; and         (iv)  a disclosure, in a conspicuous and prominent location on the application or solicitation, of a toll free telephone number or a mailing address at which the applicant may contact the creditor to obtain any change in the information provided in the application or solicitation since it was printed.       (D)  Issuers of charge cards which provide access to open end consumer credit plans.--If a charge card permits the card holder to receive an extension of credit under an open end consumer credit plan, which is not maintained by the charge card issuer, the charge card issuer may provide the information described in subparagraphs (A) and (B) in the form required by such subparagraphs in lieu of the information required to be provided under paragraph (1), (2), or (3) with respect to any credit extended under such plan, if the charge card issuer discloses clearly and conspicuously to the consumer in the application or solicitation that-- {{6-30-05 p.6585}}         (i)  the charge card issuer will make an independent decision as to whether to issue the card;         (ii)  the charge card may arrive before the decision is made with respect to an extension of credit under an open end consumer credit plan; and         (iii)  approval by the charge card issuer does not constitute approval by the issuer of the extension of credit.   The information required to be disclosed under paragraph (1) shall be provided to the charge card holder by the creditor which maintains such open end consumer credit plan before the first extension of credit under such plan.       (E)  CHARGE CARD DEFINED.--For the purposes of this subsection, the term "charge card" means a card, plate, or other single credit device that may be used from time to time to obtain credit which is not subject to a finance charge.     (5)  REGULATORY AUTHORITY OF THE BOARD.--The Board may, by regulation, require the disclosure of information in addition to that otherwise required by this subsection or subsection (d), and modify any disclosure of information required by this subsection or subsection (d), in any application to open a credit card account for any person under an open end consumer credit plan or any application to open a charge card account for any person, or a solicitation to open any such account without requiring an application, if the Board determines that such action is necessary to carry out the purposes of, or prevent evasions of, any paragraph of this subsection.     (6)  Additional Notice Concerning ``Introductory Rates''.--       (A)  IN GENERAL.--Except as provided in subparagraph (B), an application or solicitation to open a credit card account and all promotional materials accompanying such application or solicitation for which a disclosure is required under paragraph (1), and that offers a temporary annual percentage rate of interest, shall--         (i)  use the term "introductory" in immediate proximity to each listing of the temporary annual percentage rate applicable to such account, which term shall appear clearly and conspicuously;         (ii)  if the annual percentage rate of interest that will apply after the end of the temporary rate period will be a fixed rate, state in a clear and conspicuous manner in a prominent location closely proximate to the first listing of the temporary annual percentage rate (other than a listing of the temporary annual percentage rate in the tabular format described in section 122(c)), the time period in which the introductory period will end and the annual percentage rate that will apply after the end of the introductory period; and         (iii)  if the annual percentage rate that will apply after the end of the temporary rate period will vary in accordance with an index, state in a clear and conspicuous manner in a prominent location closely proximate to the first listing of the temporary annual percentage rate (other than a listing in the tabular format prescribed by section 122(c)), the time period in which the introductory period will end and the rate that will apply after that, based on an annual percentage rate that was in effect within 60 days before the date of mailing the application or solicitation.       (B)  EXCEPTION.--Clauses (ii) and (iii) of subparagraph. (A) do not apply with respect to any listing of a temporary annual percentage rate on an envelope or other enclosure in which an application or solicitation to open a credit card account is mailed.       (C)  CONDITIONS FOR INTRODUCTORY RATES.--An application or solicitation to open a credit card account for which a disclosure is required under paragraph (1), and that offers a temporary annual percentage rate of interest shall, if that rate of interest is revocable under any circumstance or upon any event, clearly and conspicuously disclose, in a prominent manner on or with such application or solicitation--         (i)  a general description of the circumstances that may result in the revocation of the temporary annual percentage rate; and         (ii)  if the annual percentage rate that will apply upon the revocation of the temporary annual percentage rate--           (I)  will be a fixed rate, the annual percentage rate that will apply upon the revocation of the temporary annual percentage rate; or {{6-30-05 p.6586}}           (II)  will vary in accordance with an index, the rate that will apply after the temporary rate, based on an annual percentage rate that was in effect within 60 days before the date of mailing the application or solicitation.       (D)  DEFINITIONS.--In this paragraph--         (i)  the terms "temporary annual percentage rate of interest" and "temporary annual percentage rate" mean any rate of interest applicable to a credit card account for an introductory period of less than 1 year, if that rate is less than an annual percentage rate that was in effect within 60 days before the date of mailing the application or solicitation; and         (ii)  the term "introductory period" means the maximum time period for which the temporary annual percentage rate may be applicable.       (E)  RELATION TO OTHER DISCLOSURE REQUIREMENTS.--Nothing in this paragraph may be construed to supersede subsection (a) of section 122, or any disclosure required by paragraph (1) or any other provision of this subsection.     (7)  INTERNET-BASED SOLICITATIONS.--       (A)  IN GENERAL.--In any solicitation to open a credit card account for any person under an open end consumer credit plan using the Internet or other interactive computer service, the person making the solicitation shall clearly and conspicuously disclose--         (i)  the information described in subparagraphs (A) and (B) of paragraph (1); and         (ii)  the information described in paragraph (6).       (B)  FORM OF DISCLOSURE.--The disclosures required by subparagraph (A) shall be--         (i)  readily accessible to consumers in close proximity to the solicitation to open a credit card account; and         (ii)  updated regularly to reflect the current policies, terms, and fee amounts applicable to the credit card account.       (C)  DEFINITIONS.--For purposes of this paragraph--         (i)  the term "Internet" means the international computer network of both Federal and non-Federal interoperable packet switched data networks; and         (ii)  the term "interactive computer service" means any information service, system, or access software provider that provides or enables computer access by multiple users to a computer server, including specifically a service or system that provides access to the Internet and such systems operated or services offered by libraries or educational institutions.   (d)  DISCLOSURE PRIOR TO RENEWAL.--     (1)  IN GENERAL.--Except as provided in paragraph (2), a card issuer that imposes any fee described in subsection (c)(1)(A)(ii)(I) or (c)(4)(A)(i) shall transmit to a consumer at least 30 days prior to the scheduled renewal date of the consumer's credit or charge card account a clear and conspicuous disclosure of--       (A)  the date by which, the month by which, or the billing period at the close of which, the account will expire if not renewed;       (B)  the information described in subsection (c)(1)(A) or (c)(4)(A) that would apply if the account were renewed, subject to subsection (e); and       (C)  the method by which the consumer may terminate continued credit availability under the account.     (2)  SPECIAL RULE FOR CERTAIN DISCLOSURES.--       (A)  IN GENERAL.--The disclosures required by this subsection may be provided--         (i)  prior to posting a fee described in subsection (c)(1)(A)(ii)(I) or (c)(4)(A)(i) to the account, or         (ii)  with the periodic billing statement first disclosing that the fee has been posted to the account.       (B)  LIMITATION ON USE OF SPECIAL RULE.--Disclosures may be provided under subparagraph (A) only if--         (i)  the consumer is given a 30-day period to avoid payment of the fee or to have the fee recredited to the account in any case where the consumer does not wish to continue the availability of the credit; and         (ii)  the consumer is permitted to use the card during such period without incurring an obligation to pay such fee. {{12-31-07 p.6587}}     (3)  SHORT-TERM RENEWALS.--The Board may by regulation provide for fewer disclosures than are required by paragraph (1) in the case of an account which is renewable for a period of less than 6 months.   (e)  Other Rules for Disclosures Under Subsections (c) and (d).—     (1)  FEES DETERMINED ON THE BASIS OF A PERCENTAGE.--If the amount of any fee required to be disclosed under subsection (c) or (d) is determined on the basis of a percentage of another amount, the percentage used in making such determination and the identification of the amount against which such percentage is applied shall be disclosed in lieu of the amount of such fee.     (2)  DISCLOSURE ONLY OF FEES ACTUALLY IMPOSED.--If a credit or charge card issuer does not impose any fee required to be disclosed under any provision of subsection (c) or (d), such provision shall not apply with respect to such issuer.   (f)  Disclosure of Range of Certain Fees Which Vary by State Allowed.--If the amount of any fee required to be disclosed by a credit or charge card issuer under paragraph (1)(B), (3)(B)(i)(II), (4)(B), or (4)(C)(i)(II) of subsection (c) varies from State to State, the card issuer may disclose the range of such fees for purposes of subsection (c) in lieu of the amount for each applicable State, if such disclosure includes a statement that the amount of such fee varies from State to State.   (g)  Insurance in Connection With Certain Open End Credit Card Plans.--     (1)  CHANGE IN INSURANCE CARRIER.--Whenever a card issuer that offers any guarantee or insurance for repayment of all or part of the outstanding balance of an open end credit card plan proposes to change the person providing that guarantee or insurance, the card issuer shall send each insured consumer written notice of the proposed change not less than 30 days prior to the change, including notice of any increase in the rate or substantial decrease in coverage or service which will result from such change. Such notice may be included on or with the monthly statement provided to the consumer prior to the month in which the proposed change would take effect.     (2)  NOTICE OF NEW INSURANCE COVERAGE.--In any case in which a proposed change described in paragraph (1) occurs, the insured consumer shall be given the name and address of the new guarantor or insurer and a copy of the policy or group certificate containing the basic terms and conditions, including the premium rate to be charged.     (3)  RIGHT TO DISCONTINUE GUARANTEE OR INSURANCE.--The notices required under paragraphs (1) and (2) shall each include a statement that the consumer has the option to discontinue the insurance or guarantee.     (4)  NO PREEMPTION OF STATE LAW.--No provision of this subsection shall be construed as superseding any provision of State law which is applicable to the regulation of insurance.     (5)  Board definition of substantial decrease in coverage or service.--The Board shall define, in regulations, what constitutes a "substantial decrease in coverage or service" for purposes of paragraph (1).   (h)  Prohibition On Certain Actions For Failure To Incur Finance Charges.--A creditor of an account under an open end consumer credit plan may not terminate an account prior to its expiration date solely because the consumer has not incurred finance charges on the account. Nothing in this subsection shall prohibit a creditor from terminating an account for inactivity in 3 or more consecutive months. [Codified to 15 U.S.C. 1637] [Source:  Section 127 of title I of the Act of May 29, 1968 (Pub. L. No. 90--321; 82 Stat. 153), effective July 1, 1969, as amended by sections 304 and 305 of title III of the Act of October 28, 1974 (Pub. L. No. 93--495; 88 Stat. 1511), effective October 28, 1975, sections 411 and 415 of title IV of the Act of October 28, 1974 (Pub. L. No. 93--495; 88 Stat. 1519, 1521), effective October 28, 1975 and October 28, 1974, respectively; section 613 of title VI of the Act of March 31, 1980 (Pub. L. No. 96--221; 94 Stat. 176), effective October 1, 1982; sections 2(a) and 6 of the Act of November 3, 1988 (Pub. L. No. 100--583; 102 Stat. 2960--2966 and 2968), effective November 3, 1988; and section 2(b) of the Act of November 23, 1988 (Pub. L. No. 100--709; 102 Stat. 4729), effective November 23, 1988; sections {{12-31-07 p.6588}}1301(a), 1303(a), 1304(a), 1305(a), and 1306(a) of title XIII of the Act of April 20, 2005 (Pub. L. No. 109-8; 119 Stat. 204, 209, 211, and 212, respectively), effective 18 months (October 20, 2006) after the date of enactment of this Act, or 12 months (April 20, 2006) after the publication of such final regulations by the board] § 127A. Disclosure requirements for open end consumer credit plans secured by the consumer's principal dwelling.   (a)   APPLICATION DISCLOSURES.--In the case of any open end consumer credit plan which provides for any extension of credit which is secured by the consumer's principal dwelling, the creditor shall make the following disclosures in accordance with subsection (b):     (1)   FIXED ANNUAL PERCENTAGE RATE.--Each annual percentage rate imposed in connection with extensions of credit under the plan and a statement that such rate does not include costs other than interest.     (2)   VARIABLE PERCENTAGE RATE.--In the case of a plan which provides for variable rates of interest on credit extended under the plan--       (A)  a description of the manner in which such rate will be computed and a statement that such rate does not include costs other than interest;       (B)  a description of the manner in which any changes in the annual percentage rate will be made, including--         (i)  any negative amortization and interest rate carryover;         (ii)  the timing of any such changes;         (iii)  any index or margin to which such changes in the rate are related; and         (iv)  a source of information about any such index;       (C)  if an initial annual percentage rate is offered which is not based on an index--         (i)  a statement of such rate and the period of time such initial rate will be in effect; and         (ii)  a statement that such rate does not include costs other than interest;       (D)  a statement that the consumer should ask about the current index value and interest rate;       (E)  a statement of the maximum amount by which the annual percentage rate may change in any 1-year period or a statement that no such limit exists;       (F)  a statement of the maximum annual percentage rate that may be imposed at any time under the plan;       (G)  subject to subsection (b)(3), a table, based on a $10,000 extension of credit, showing how the annual percentage rate and the minimum periodic payment amount under each repayment option of the plan would have been affected during the preceding 15-year period by changes in any index used to compute such rate;       (H)  a statement of--         (i)  the maximum annual percentage rate which may be imposed under each repayment option of the plan;         (ii)  the minimum amount of any periodic payment which may be required, based on a $10,000 outstanding balance, under each such option when such maximum annual percentage rate is in effect; and         (iii)  the earliest date by which such maximum annual interest rate may be imposed; and       (I)  a statement that interest rate information will be provided on or with each periodic statement.     (3)   OTHER FEES IMPOSED BY THE CREDITOR.--An itemization of any fees imposed by the creditor in connection with the availability or use of credit under such plan, including annual fees, application fees, transaction fees, and closing costs (including costs commonly described as "points"), and the time when such fees are payable.     (4)   Estimates of fees which may be imposed by third parties.--       (A)   AGGREGATE AMOUNT.--An estimate, based on the creditor's experience with such plans and stated as a single amount or as a reasonable range, of the aggregate amount of additional fees that may be imposed by third parties (such as governmental authorities, appraisers, and attorneys) in connection with opening an account under the plan. {{6-30-05 p.6588.01}}       (B)   STATEMENT OF AVAILABILITY.--A statement that the consumer may ask the creditor for a good faith estimate by the creditor of the fees that may be imposed by third parties.     (5)   STATEMENT OF RISK OF LOSS OF DWELLING.--A statement that--       (A)  any extension of credit under the plan is secured by the consumer's dwelling; and       (B)  in the event of any default, the consumer risks the loss of the dwelling.     (6)   CONDITIONS TO WHICH DISCLOSED TERMS ARE SUBJECT.--       (A)   PERIOD DURING WHICH SUCH TERMS ARE AVAILABLE.--A clear and conspicuous statement--         (i)  of the time by which an application must be submitted to obtain the terms disclosed; or         (ii)  if applicable, that the terms are subject to change.       (B)   RIGHT OF REFUSAL IF CERTAIN TERMS CHANGE.--A statement that--         (i) the consumer may elect not to enter into an agreement to open an account under the plan if any term changes (other than a change contemplated by a variable feature of the plan) before any such agreement is final; and         (ii) if the consumer makes an election described in clause (i), the consumer is entitled to a refund of all fees paid in connection with the application.       (C)   RETENTION OF INFORMATION.--A statement that the consumer should make or otherwise retain a copy of information disclosed under this subparagraph.     (7)   Rights of creditor with respect to extensions of credit.--A statement that--       (A) under certain conditions, the creditor may terminate any account under the plan and require immediate repayment of any outstanding balance, prohibit any additional extension of credit to the account, or reduce the credit limit applicable to the account; and       (B) the consumer may receive, upon request, more specific information about the conditions under which the creditor may take any action described in subparagraph (A).     (8)   Repayment options and minimum periodic payments.--The repayment options under the plan, including--       (A) if applicable, any differences in repayment options with regard to--         (i) any period during which additional extensions of credit may be obtained; and         (ii) any period during which repayment is required to be made and no additional extensions of credit may be obtained;       (B) the length of any repayment period, including any differences in the length of any repayment period with regard to the periods described in clauses (i) and (ii) of subparagraph (A); and       (C) an explanation of how the amount of any minimum monthly or periodic payment will be determined under each such option, including any differences in the determination of any such amount with regard to the periods described in clauses (i) and (ii) of subparagraph (A).     (9)   Example of minimum payments and maximum repayment period.--An example, based on a $10,000 outstanding balance and the interest rate (other than a rate not based on the index under the plan) which is, or was recently, in effect under such plan, showing the minimum monthly or periodic payment, and the time it would take to repay the entire $10,000 if the consumer paid only the minimum periodic payments and obtained no additional extensions of credit.     (10)   STATEMENT CONCERNING BALLOON PAYMENTS.--If, under any repayment option of the plan, the payment of not more than the minimum periodic payments required under such option over the length of the repayment period--       (A) would not repay any of the principal balance; or       (B) would repay less than the outstanding balance by the end of such period, as the case may be, a statement of such fact, including an explicit statement that at the end of such repayment period a balloon payment (as defined in section 147(f)) would result which would be required to be paid in full at that time.     (11)   NEGATIVE AMORTIZATION.--If applicable, a statement that-- {{6-30-05 p.6588.02}}       (A) any limitation in the plan on the amount of any increase in the minimum payments may result in negative amortization;       (B) negative amortization increases the outstanding principal balance of the account; and       (C) negative amortization reduces the consumer's equity in the consumer's dwelling.     (12)   Limitations and minimum amount requirements on extensions of credit.--       (A)   NUMBER AND DOLLAR AMOUNT LIMITATIONS.--Any limitation contained in the plan on the number of extensions of credit and the amount of credit which may be obtained during any month or other defined time period.       (B)   Minimum balance and other transaction amount requirements.--Any requirement which establishes a minimum amount for--         (i) the initial extension of credit to an account under the plan;         (ii) any subsequent extension of credit to an account under the plan; or         (iii) any outstanding balance of an account under the plan.     (13)   STATEMENT REGARDING TAX DEDUCTIBILITY.--A statement that--       (A)  the consumer should consult a tax advisor regarding the deductibility of interest and charges under the plan; and       (B)  in any case in which the extension of credit exceeds the fair market value (as defined under the Internal Revenue Code of 1986) of the dwelling, the interest on the portion of the credit extension that is greater than the fair market value of the dwelling is not tax deductible for Federal income tax purposes.     (14)   DISCLOSURE REQUIREMENTS ESTABLISHED BY BOARD.--Any other term which the Board requires, in regulations, to be disclosed.   (b) TIME AND FORM OF DISCLOSURES.--     (1) TIME OF DISCLOSURE.--       (A) IN GENERAL.--The disclosures required under subsection (a) with respect to any open end consumer credit plan which provides for any extension of credit which is secured by the consumer's principal dwelling and the pamphlet required under subsection (e) shall be provided to any consumer at the time the creditor distributes an application to establish an account under such plan to such consumer.       (B) TELEPHONE, PUBLICATIONS, AND 3d party applications.--In the case of telephone applications, applications contained in magazines or other publications, or applications provided by a third party, the disclosures required under subsection (a) and the pamphlet required under subsection (e) shall be provided by the creditor before the end of the 3-day period beginning on the date the creditor receives a completed application from a consumer.     (2) FORM.--       (A) IN GENERAL.--Except as provided in paragraph (1)(B), the disclosures required under subsection (a) shall be provided on or with any application to establish an account under an open end consumer credit plan which provides for any extension of credit which is secured by the consumer's principal dwelling.       (B)   Segregation of required disclosures from other information. --The disclosures required under subsection (a) shall be conspicuously segregated from all other terms, data, or additional information provided in connection with the application, either by grouping the disclosures separately on the application form or by providing the disclosures on a separate form, in accordance with regulations of the Board.       (C)   PRECEDENCE OF CERTAIN INFORMATION. --The disclosures required by paragraphs (5), (6), and (7) of subsection (a) shall precede all of the other required disclosures.       (D)   Special provision relating to variable interest rate information. -- Whether or not the disclosures required under subsection (a) are provided on the application form, the variable rate information described in subsection (a)(2) may be provided separately from the other information required to be disclosed.     (3)   REQUIREMENT FOR HISTORICAL TABLE. --In preparing the table required under subsection (a)(2)(G), the creditor shall consistently select one rate of interest for each year and the manner of selecting the rate from year to year shall be consistent with the plan. {{6-30-05 p.6588.03}}   (c) 3d PARTY APPLICATIONS. --In the case of an application to open an account under any open end consumer credit plan described in subsection (a) which is provided to a consumer by any person other than the creditor--     (1)  such person shall provide such consumer with--       (A)  the disclosures required under subsection (a) with respect to such plan, in accordance with subsection (b); and       (B)  the pamphlet required under subsection (e); or     (2)  if such person cannot provide specific terms about the plan because specific information about the plan terms is not available, no nonrefundable fee may be imposed in connection with such application before the end of the 3-day period beginning on the date the consumer receives the disclosures required under subsection (a) with respect to the application.   (d)   PRINCIPAL DWELLING DEFINED. --For purposes of this section and sections 137 and 147, the term "principal dwelling" includes any second or vacation home of the consumer.   (e)   PAMPHLET. --In addition to the disclosures required under subsection (a) with respect to an application to open an account under any open end consumer credit plan described in such subsection, the creditor or other person providing such disclosures to the consumer shall provide--     (1)  a pamphlet published by the Board pursuant to section 4 of the Home Equity Consumer Protection Act of 1988; or     (2)  any pamphlet which provides substantially similar information to the information described in such section, as determined by the Board. [Codified to 15 U.S.C. 1637a] [Source: Section 127A added by section 2(a) of the Act of November 23, 1988 (Pub. L. No. 100--709; 102 Stat. 4725--4729), effective November 23, 1988; as amended by 1302(a)(1) of title XIII of the Act of April 20, 2005 (Pub. L. No. 109-8; 119 Stat. 208), effective 12 months (April 20, 2006) after the date of enactment of this Act, or 12 months (April 20, 2006) after the date of publication of such final regulations by the Board] § 128.  Consumer credit not under open end credit plans   (a)  For each consumer credit transaction other than under an open end credit plan, the creditor shall disclose each of the following items, to the extent applicable:     (1)  The identity of the creditor required to make disclosure.     (2)(A)  The "amount financed", using that term, which shall be the amount of credit of which the consumer has actual use. This amount shall be computed as follows, but the computations need not be disclosed and shall not be disclosed with the disclosures conspicuously segregated in accordance with subsection (b)(1):         (i)  take the principal amount of the loan or the cash price less downpayment and trade-in;         (ii)  add any charges which are not part of the finance charge or of the principal amount of the loan and which are financed by the consumer, including the cost of any items excluded from the finance charge pursuant to section 106; and         (iii)  subtract any charges which are part of the finance charge but which will be paid by the consumer before or at the time of the consummation of the transaction, or have been withheld from the proceeds of the credit.       (B)  In conjunction with the disclosure of the amount financed, a creditor shall provide a statement of the consumer's right to obtain, upon a written request, a written itemization of the amount financed. The statement shall include spaces for a "yes" and "no" indication to be initialed by the consumer to indicate whether the consumer wants a written itemization of the amount financed. Upon receiving an affirmative indication, the creditor shall provide, at the time other disclosures are required to be furnished, a written itemization of the amount financed. For the purposes of this subparagraph, "itemization of the amount financed" means a disclosure of the following items, to the extent applicable:         (i)  the amount that is or will be paid directly to the consumer;         (ii)  the amount that is or will be credited to the consumer's account to discharge obligations owed to the creditor;         (iii)  each amount that is or will be paid to third persons by the creditor on the consumer's behalf, together with an identification of or reference to the third person; and {{6-30-05 p.6588.04}}         (iv)  the total amount of any charges described in the preceding subparagraph (A)(iii).     (3)  The "finance charge", not itemized, using that term.     (4)  The finance charge expressed as an "annual percentage rate", using that term. This shall not be required if the amount financed does not exceed $75 and the finance charge does not exceed $5, or if the amount financed exceeds $75 and the finance charge does not exceed $7.50.     (5)  The sum of the amount financed and the finance charge, which shall be termed the "total of payments".     (6)  The number, amount, and due dates or period of payments scheduled to repay the total of payments.     (7)  In a sale of property or services in which the seller is the creditor required to disclose pursuant to section 121(b), the "total sale price", using that term, which shall be the total of the cash price of the property or services, additional charges, and the finance charge.     (8)  Descriptive explanations of the terms "amount financed", "finance charge", "annual percentage rate", "total of payments", and "total sale price" as specified by the Board. The descriptive explanation of "total sale price" shall include reference to the amount of the downpayment.     (9)  Where the credit is secured, a statement that a security interest has been taken in (A) the property which is purchased as part of the credit transaction, or (B) property not purchased as part of the credit transaction identified by item or type.     (10)  Any dollar charge or percentage amount which may be imposed by a creditor solely on account of a late payment, other than a deferral or extension charge.     (11)  A statement indicating whether or not the consumer is entitled to a rebate of any finance charge upon refinancing or prepayment in full pursuant to acceleration or otherwise, if the obligation involves a precomputed finance charge. A statement indicating whether or not a penalty will be imposed in those same circumstances if the obligation involves a finance charge computed from time to time by application of a rate to the unpaid principal balance.     (12)  A statement that the consumer should refer to the appropriate contract document for any information such document provides about nonpayment, default, the right to accelerate the maturity of the debt, and prepayment rebates and penalties.     (13)  In any residential mortgage transaction, a statement indicating whether a subsequent purchaser or assignee of the consumer may assume the debt obligation on its original terms and conditions.     (14)  In the case of any variable interest rate residential mortgage transaction, in disclosures provided at application as prescribed by the Board for a variable rate transaction secured by the consumer's principal dwelling, at the option of the creditor, a statement that the periodic payments may increase or decrease substantially, and the maximum interest rate and payment for a $10,000 loan originated at a recent interest rate, as determined by the Board, assuming the maximum periodic increases in rates and payments under the program, or a historical example illustrating the effects of interest rate changes implemented according to the loan program.     (15)  In the case of a consumer credit transaction that is secured by the principal dwelling of the consumer, in which the extension of credit may exceed the fair market value of the dwelling, a clear and conspicuous statement that--       (A)  the interest on the portion of the credit extension that is greater than the fair market value of the dwelling is not tax deductible for Federal income tax purposes; and       (B)  the consumer should consult a tax adviser for further information regarding the deductibility of interest and charges.   (b)(1)  Except as otherwise provided in this chapter, the disclosures required under subsection (a) shall be made before the credit is extended. Except for the disclosures required by subsection (a)(1) of this section, all disclosures required under subsection (a) and any disclosure provided for in subsection (b), (c), or (d) of section 106 shall be conspicuously segregated from all other terms, data, or information provided in connection with a transaction, including any computations or itemization.     (2)  In the case of a residential mortgage transaction, as defined in section 103(w), which is also subject to the Real Estate Settlement Procedures Act, good faith estimates of {{6-30-05 p.6588.04-A}}the disclosures required under subsection (a) shall be made in accordance with regulations of the Board under section 121(c) before the credit is extended, or shall be delivered or placed in the mail not later than three business days after the creditor receives the consumer's written application, whichever is earlier. If the disclosure statement furnished within three days of the written application contains an annual percentage rate which is subsequently rendered inaccurate within the meaning of section 107(c), the creditor shall furnish another statement at the time of settlement or consummation.     (3)  In the case of a credit transaction described in paragraph (15) of subsection (a), disclosures required by that paragraph shall be made to the consumer at the time of application for such extension of credit.   (c)(1)  If a creditor receives a purchase order by mail or telephone without personal solicitation, and the cash price and the total sale price and the terms of financing, including the annual percentage rate, are set forth in the creditor's catalog or other printed material distributed to the public, then the disclosures required under subsection (a) may be made at any time not later than the date the first payment is due.     (2)  If a creditor receives a request for a loan by mail or telephone without personal solicitation and the terms of financing, including the annual percentage rate for representative amounts of credit, are set forth in the creditor's printed material distributed to the public, or in the contract of loan or other printed material delivered to the obligor, then the disclosures required under subsection (a) may be made at any time not later than the date the first payment is due.   (d)  If a consumer credit sale is one of a series of consumer credit sales transactions made pursuant to an agreement providing for the addition of the deferred payment price of that sale to an existing outstanding balance, and the person to whom the credit is extended has approved in writing both the annual percentage rate or rates and the method of computing the finance charge or charges, and the creditor retains no security interest in any property as to which he has received payments aggregating the amount of the sales price including any finance charges attributable thereto, then the disclosure required under subsection (a) for the particular sale may be made at any time not later than the date the first payment for that sale is due. For the purposes of this subsection, in the case of items purchased on different dates, the first purchased shall be deemed first paid for, and in the case of items purchased on the same date, the lowest priced shall be deemed first paid for. [Codified to 15 U.S.C. 1638] [Source:  Section 128 of title I of the Act of May 29, 1968 (Pub. L. No. 90--321; 82 Stat. 155), effective July 1, 1969, as amended by section 614 of title VI of the Act of March 31, 1980 (Pub. L. No. 96--221; 94 Stat. 178--180), effective October 1, 1982; section 2105 of title II of the Act of September 30, 1996 (Pub. L. No. 104--208; 110 Stat. 3009--402), effective September 30, 1996; section 1302(b)(1) of title XIII of the Act of April 20, 2005 (Pub. L. No. 109--8; 119 Stat. 209), effective April 20, 2005] § 129.  Requirements for certain mortgages   (a)  DISCLOSURES.--     (1)  SPECIFIC DISCLOSURES.--In addition to other disclosures required under this title, for each mortgage referred to in section 103(aa), the creditor shall provide the following disclosures in conspicuous type size:       (A)  "You are not required to complete this agreement merely because you have received these disclosures or have signed a loan application."       (B)  "If you obtain this loan, the lender will have a mortgage on your home. You could lose your home, and any money you have put into it, if you do not meet your obligations under the loan."     (2)  ANNUAL PERCENTAGE RATE.--In addition to the disclosures required under paragraph (1), the creditor shall disclose--       (A)  in the case of a credit transaction with a fixed rate of interest, the annual percentage rate and the amount of the regular monthly payment; or       (B)  in the case of any other credit transaction, the annual percentage rate of the loan, the amount of the regular monthly payment, a statement that the interest rate and monthly payment may increase, and the amount of the maximum monthly payment, based {{6-30-05 p.6588.04-B}}on the maximum interest rate allowed pursuant to section 1204 of the Competitive Equality Banking Act of 1987.   (b)  TIME OF DISCLOSURES.--     (1)  IN GENERAL.--The disclosures required by this section shall be given not less than 3 business days prior to consummation of the transaction.     (2)  NEW DISCLOSURES REQUIRED.--       (A)  IN GENERAL.--After providing the disclosures required by this section, a creditor may not change the terms of the extension of credit if such changes make the disclosures inaccurate, unless new disclosures are provided that meet the requirements of this section.       (B)  TELEPHONE DISCLOSURE.--A creditor may provide new disclosures pursuant to subparagraph (A) by telephone, if--         (i)  the change is initiated by the consumer; and         (ii)  at the consummation of the transaction under which the credit is extended--           (I)  the creditor provides to the consumer the new disclosures, in writing; and           (II)  the creditor and consumer certify in writing that the new disclosures were provided by telephone, by not later than 3 days prior to the date of consummation of the transaction.     (3)  MODIFICATIONS.--The Board may, if it finds that such action is necessary to permit homeowners to meet bona fide personal financial emergencies, prescribe regulations authorizing the modification or waiver of rights created under this subsection, to the extent and under the circumstances set forth in those regulations.   (c)  NO PREPAYMENT PENALTY.--     (1)  IN GENERAL.--       (A)  LIMITATION ON TERMS.--A mortgage referred to in section 103(aa) may not contain terms under which a consumer must pay a prepayment penalty for paying all or part of the principal before the date on which the principal is due.       (B)  CONSTRUCTION.--For purposes of this subsection, any method of computing a refund of unearned scheduled interest is a prepayment penalty if it is less favorable to the consumer than the actuarial method (as that term is defined in section 933(d) of the Housing and Community Development Act of 1992).     (2)  EXCEPTION.--Notwithstanding paragraph (1), a mortgage referred to in section 103(aa) may contain a prepayment penalty (including terms calculating a refund by a method that is not prohibited under section 933(b) of the Housing and Community Development Act of 1992 for the transaction in question) if--       (A)  at the time the mortgage is consummated--         (i)  the consumer is not liable for an amount of monthly indebtedness payments (including the amount of credit extended or to be extended under the transaction) that is greater than 50 percent of the monthly gross income of the consumer; and         (ii)  the income and expenses of the consumer are verified by a financial statement signed by the consumer, by a credit report, and in the case of employment income, by payment records or by verification from the employer of the consumer (which verification may be in the form of a copy of a pay stub or other payment record supplied by the consumer);       (B)  the penalty applies only to a prepayment made with amounts obtained by the consumer by means other than a refinancing by the creditor under the mortgage, or an affiliate of that creditor;       (C)  the penalty does not apply after the end of the 5-year period beginning on the date on which the mortgage is consummated; and {{10-31-95 p.6588.05}}       (D)  the penalty is not prohibited under other applicable law.   (d)  LIMITATIONS AFTER DEFAULT.--A mortgage referred to in section 103(aa) may not provide for an interest rate applicable after default that is higher than the interest rate that applies before default. If the date of maturity of a mortgage referred to in subsection 103(aa) is accelerated due to default and the consumer is entitled to a rebate of interest, that rebate shall be computed by any method that is not less favorable than the actuarial method (as that term is defined in section 933(d) of the Housing and Community Development Act of 1992).   (e)  NO BALLOON PAYMENTS.--A mortgage referred to in section 103(aa) having a term of less than 5 years may not include terms under which the aggregate amount of the regular periodic payments would not fully amortize the outstanding principal balance.   (f)  NO NEGATIVE AMORTIZATION.--A mortgage referred to in section 103(aa) may not include terms under which the outstanding principal balance will increase at any time over the course of the loan because the regular periodic payments do not cover the full amount of interest due.   (g)  NO PREPAID PAYMENTS.--A mortgage referred to in section 103(aa) may not include terms under which more than 2 periodic payments required under the loan are consolidated and paid in advance from the loan proceeds provided to the consumer.   (h)  Prohibition on Extending Credit Without Regard to Payment Ability of Consumer.--A creditor shall not engage in a pattern or practice of extending credit to consumers under mortgages referred to in section 103(aa) based on the consumers' collateral without regard to the consumers' repayment ability, including the consumers' current and expected income, current obligations, and employment.   (i)  Requirements for Payments Under Home Improvement Contracts.--A creditor shall not make a payment to a contractor under a home improvement contract from amounts extended as credit under a mortgage referred to in section 103(aa), other than--     (1)  in the form of an instrument that is payable to the consumer or jointly to the consumer and the contractor; or     (2)  at the election of the consumer, by a third party escrow agent in accordance with terms established in a written agreement signed by the consumer, the creditor, and the contractor before the date of payment.   (j)  CONSEQUENCE OF FAILURE TO COMPLY.--Any mortgage that contains a provision prohibited by this section shall be deemed a failure to deliver the material disclosures required under this title, for the purpose of section 125.   (k)  DEFINITION.--For purposes of this section, the term "affiliate" has the same meaning as in section 2(k) of the Bank Holding Company Act of 1956.   (l)  Discretionary Regulatory Authority of Board.--     (1)  EXEMPTIONS.--The Board may, by regulation or order, exempt specific mortgage products or categories of mortgages from any or all of the prohibitions specified in subsections (c) through (i), if the Board finds that the exemption--       (A)  is in the interest of the borrowing public; and       (B)  will apply only to products that maintain and strengthen home ownership and equity protection.     (2)  PROHIBITIONS.--The Board, by regulation or order, shall prohibit acts or practices in connection with--       (A)  mortgage loans that the Board finds to be unfair, deceptive, or designed to evade the provisions of this section; and       (B)  refinancing of mortgage loans that the Board finds to be associated with abusive lending practices, or that are otherwise not in the interest of the borrower. [Codified to 15 U.S.C. 1639] [Source:  Section 129 of title I of the Act of May 29, 1968 (Pub. L. No. 90--321; 82 Stat. 156), effective July 1, 1969, as repealed by section 614 of title VI of the Act of March 31, 1980 (Pub. L. No. 96--221; 94 Stat. 180), effective October 1, 1982, as added by section {{10-31-95 p.6588.06}}151(d) of title I of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2191), effective September 23, 1994] § 130.  Civil liability   (a)  Except as otherwise provided in this section, any creditor who fails to comply with any requirement imposed under this chapter, including any requirement under section 125 or chapter 4 or 5 of this title with respect to any person is liable to such person in an amount equal to the sum of--     (1)  any actual damage sustained by such person as a result of the failure;     (2)  (A)(i)  in the case of an individual action twice the amount of any finance charge in connection with the transaction, (ii) in the case of an individual action relating to a consumer lease under chapter 5 of this title, 25 per centum of the total amount of monthly payments under the lease except that the liability under this subparagraph shall not be less than $100 nor greater than $1,000, or (iii) in the case of an individual action relating to a credit transaction not under an open end credit plan that is secured by real property or a dwelling, not less than $200 or greater than $2,000; or       (B)  in the case of a class action, such amount as the court may allow, except that as to each member of the class no minimum recovery shall be applicable, and the total recovery under this subparagraph in any class action or series of class actions arising out of the same failure to comply by the same creditor shall not be more than the lesser of $500,000 or 1 per centum of the net worth of the creditor;     (3)  in the case of any successful action to enforce the foregoing liability or in any action in which a person is determined to have a right of rescission under section 125, the costs of the action, together with a reasonable attorney's fee as determined by the court. In determining the amount of award in any class action, the court shall consider, among other relevant factors, the amount of any actual damages awarded, the frequency and persistence of failures of compliance by the creditor, the resources of the creditor, the number of persons adversely affected, and the extent to which the creditor's failure of compliance was intentional. In connection with the disclosures referred to in subsections (a) and (b) of section 127, a creditor shall have a liability determined under paragraph (2) only for failing to comply with the requirements of section 125, section 127(a), or of paragraph (4), (5), (6), (7), (8), (9), or (10) of section 127(b) or for failing to comply with disclosure requirements under State law for any term or item which the Board has determined to be substantially the same in meaning under section 111(a)(2) as any of the terms or items referred to in section 127(a) or any of those paragraphs of section 127(b). In connection with the disclosures referred to in subsection (c) or (d) of section 127, a card issuer shall have a liability under this section only to a cardholder who pays a fee described in section 127(c)(1)(A)(ii)(I) or section 127(c)(4)(A)(i) or who uses the credit card or charge card. In connection with the disclosures referred to in section 128, a creditor shall have a liability determined under paragraph (2) only for failing to comply with the requirements of section 125 or of paragraph (2) (insofar as it requires a disclosure of the "amount financed" ), (3), (4), (5), (6), or (9) of section 128(a), or for failing to comply with disclosure requirements under State law for any term which the Board has determined to be substantially the same in meaning under section 111(a)(2) as any of the terms referred to in any of those paragraphs of section 128(a). With respect to any failure to make disclosures required under this chapter or chapter 4 or 5 of this title, liability shall be imposed only upon the creditor required to make disclosure, except as provided in section 131; and     (4)  in the case of a failure to comply with any requirement under section 129, an amount equal to the sum of all finance charges and fees paid by the consumer, unless the creditor demonstrates that the failure to comply is not material.   (b)  A creditor or assignee has no liability under this section or section 108 or section 112 for any failure to comply with any requirement imposed under this chapter or chapter 5, if within sixty days after discovering an error, whether pursuant to a final written examination report or notice issued under section 108(e)(1) or through the creditor's or assignee's own procedures, and prior to the institution of an action under this section or the {{10-31-95 p.6588.07}}receipt of written notice of the error from the obligor, the creditor or assignee notifies the person concerned of the error and makes whatever adjustments in the appropriate account are are necessary to assure that the person will not be required to pay an amount in excess of the charge actually disclosed, or the dollar equivalent of the annual percentage rate actually disclosed, whichever is lower.   (c)  A creditor or assignee may not be held liable in any action brought under this section or section 125 for a violation of this title if the creditor or assignee shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid any such error. Examples of a bona fide error include, but are not limited to, clerical, calculation, computer malfunction and programming, and printing errors, except that an error of legal judgment with respect to a person's obligations under this title is not a bona fide error.   (d)  When there are multiple obligors in a consumer credit transaction or consumer lease, there shall be no more than one recovery of damages under subsection (a)(2) for a violation of this title.   (e)  Any action under this section may be brought in any United States district court, or in any other court of competent jurisdiction, within one year from the date of the occurrence of the violation. This subsection does not bar a person from asserting a violation of this title in an action to collect the debt which was brought more than one year from the date of the occurrence of the violation as a matter of defense by recoupment or set-off in such action, except as otherwise provided by State law. An action to enforce a violation of section 129 may also be brought by the appropriate State attorney general in any appropriate United States district court, or any other court of competent jurisdiction, not later than 3 years after the date on which the violation occurs. The State attorney general shall provide prior written notice of any such civil action to the Federal agency responsible for enforcement under section 108 and shall provide the agency with a copy of the complaint. If prior notice is not feasible, the State attorney general shall provide notice to such agency immediately upon instituting the action. The Federal agency may--     (1)  intervene in the action;     (2)  upon intervening--       (A)  remove the action to the appropriate United States district court, if it was not originally brought there; and       (B)  be heard on all matters arising in the action; and     (3)  file a petition for appeal.   (f)  No provision of this section, section 108(b), section 108(c), section 108(e), or section 112 imposing any liability shall apply to any act done or omitted in good faith in conformity with any rule, regulation, or interpretation thereof by the Board, or in conformity with any interpretation or approval by an official or employee of the Federal Reserve System duly authorized by the Board to issue such interpretations or approvals under such procedures as the Board may prescribe therefor, notwithstanding that after such act or omission has occurred, such rule, regulation, interpretation, or approval is amended, rescinded, or determined by judicial or other authority to be invalid for any reason.   (g)  The multiple failure to disclose to any person any information required under this chapter or chapter 4 or 5 of this title to be disclosed in connection with a single account under an open end consumer credit plan, other single consumer credit sale, consumer loan, consumer lease or other extension of consumer credit, shall entitle the person to a single recovery under this section but continued failure to disclose after a recovery has been granted shall give rise to rights to additional recoveries. This subsection does not bar any remedy permitted by section 125.   (h)  A person may not take any action to offset any amount for which a creditor or assignee is potentially liable to such person under subsection (a)(2) against any amount owed by such person, unless the amount of the creditor's or assignee's liability under this title has been determined by judgment of a court of competent jurisdiction in an action of which such person was a party. This subsection does not bar a consumer then in default on {{10-31-95 p.6588.08}}the obligation from asserting a violation of this title as an original action, or as a defense or counterclaim to an action to collect amounts owed by the consumer brought by a person liable under this title.   (i)  CLASS ACTION MORATORIUM.--     (1)  IN GENERAL.--During the period beginning on the date of the enactment of the Truth in Lending Class Action Relief Act of 1995 and ending on October 1, 1995, no court may enter any order certifying any class in any action under this title--       (A)  which is brought in connection with any credit transaction not under an open end credit plan which is secured by a first lien on real property or a dwelling and constitutes a refinancing or consolidation of an existing extension of credit; and       (B)  which is based on the alleged failure of a creditor--         (i)  to include a charge actually incurred (in connection with the transaction) in the finance charge disclosed pursuant to section 128;         (ii)  to properly make any other disclosure required under section 128 as a result of the failure described in clause (i); or         (iii)  to provide proper notice of rescission rights under section 125(a) due to the selection by the creditor of the incorrect form from among the model forms prescribed by the Board or from among forms based on such model forms.     (2)  Exceptions For Certain Alleged Violations.--Paragraph (1) shall not apply with respect to any action--       (A)  described in clause (i) or (ii) of paragraph (1)(B), if the amount disclosed as the finance charge results in an annual percentage rate that exceeds the tolerance provided in section 107(c); or       (B)  described in paragraph (1)(B)(iii), if--         (i)  no notice relating to rescission rights under section 125(a) was provided in any form; or         (ii)  proper notice was not provided for any reason other than the reason described in such paragraph. [Codified to 15 U.S.C. 1640] [Source:  Section 130 of title I of the Act of May 29, 1968 (Pub. L. No. 90--321; 82 Stat. 157), effective July 1, 1969, as amended by sections 406--408(d) of title IV of the Act of October 28, 1974 (Pub. L. No. 93--495; 88 Stat. 1518), effective October 28, 1974; section 3(b) of the Act of February 27, 1976 (Pub. L. No. 94--222; 90 Stat. 197), effective February 27, 1976; section 4 of the Act of March 23, 1976 (Pub. L. No. 94--240; 90 Stat. 260), effective March 23, 1977; section 615 of title VI of the Act of March 31, 1980 (Pub. L. No. 96--221; 94 Stat. 180-181), effe