Request for comments on review of open-end credit rules, Regulation Z.The Federal Reserve Board issued for public comment on December 3, 2004, an advance notice of proposed rulemaking A notice of proposed rulemaking or NPRM is issued by law when a regulatory agency of the United States Federal Government wishes to add, remove, or change a rule (or regulation) as part of the rulemaking process. Outside the USA. (ANPR ANPR Automatic Number Plate Recognition ANPR Advance Notice of Proposed Rulemaking ANPR Association of National Park Rangers ) announcing a review of the open-end (revolving) credit rules of the Board's Regulation Z (Truth in Lending), which implements the Truth in Lending Act The Truth in Lending Act is contained in Title I of the Consumer Credit Protection Act (15 U.S.C.A. § 1601 et seq.). The CCPA is designed to assure that every customer who needs Consumer Credit is given meaningful information concerning the cost of such credit. . The Board periodically reviews each of its regulations to update them, if necessary. Open-end credit A type of revolving account that permits an individual to pay, on a monthly basis, only a portion of the total amount due. This type of Consumer Credit is frequently used in conjunction with bank and department store credit cards. generally refers to a revolving line of credit Revolving line of credit A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years. (such as a credit card account) where repeated transactions are expected, the available credit is replenished as unpaid balances are repaid, and finance charges are assessed on unpaid balances. The ANPR seeks comment on a variety of specific issues relating to three broad categories: (1) the format of open-end credit disclosures; (2) the content of the disclosures; and (3) the substantive protections provided under the regulation. The ANPR solicits comments on the scope of the review, and also requests commenters to identify other issues that the Board should consider addressing in the review. Comments must be received on or before March 28, 2005. |
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