BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D.C.  20551

DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS

CA 09-7

August 20, 2009

TO THE OFFICERS AND MANAGERS IN CHARGE OF CONSUMER AFFAIRS SECTIONS:

SUBJECT: Revised Regulation Z Examination Procedures

This letter transmits revised Regulation Z examination procedures that incorporate recent amendments to the Truth in Lending Act (TILA). These revised procedures supersede those transmitted with CA 09-4.

The Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit Card Act) amended TILA and established a number of new requirements for open-end consumer credit plans. The Credit Card Act provisions are effective in three stages. The first set of revisions are effective on August 20, 2009, and were implemented by the Board in an interim final rule published on July 22, 2009 (74 Fed. Reg. 36077). The interim final rule requires that creditors provide consumers with notice 45 days before increasing the rate on a credit card account or making a significant change to the account's terms. Consumers may reject such increases and changes by canceling the card and informing the creditor before the increase or change goes into effect. The new provisions also require that creditors mail or deliver periodic statements for credit cards and other open-end consumer credit accounts at least 21 days before payment is due.

The remaining provisions of the Credit Card Act go into effect on February 22, 2010, and August 22, 2010. We will issue corresponding revisions to the Regulation Z examination procedures to reflect those amendments as they are released. If you have any questions, please contact David Evans, Senior Supervisory Consumer Financial Services Analyst, (202) 452-2093, or Paul Robin, Manager, Oversight and Policy, at (202) 452-3140.

Sincerely,
(signed)

Sandra F. Braunstein
Director
Division of Consumer and Community Affairs

Attachment: Revised Regulation Z Examination Procedures (553 KB PDF)

Supersedes: CA 09-4