Circular
Comments Requested on Proposed Amendments to Regulation Z
May 23, 2007
Circular No. 11861

The Federal Reserve Board has issued for public comment proposed amendments to Regulation Z (Truth in Lending) that are intended to improve the effectiveness of the disclosures consumers receive in connection with credit card accounts and other revolving credit plans by ensuring that information is provided in a timely manner and in a form that is readily understandable.

The proposed amendments principally focus on the rules for open-end credit accounts that are not home-secured, chiefly general-purpose and retail credit card plans. The proposal would require changes to the format, timing, and content requirements for credit card applications and solicitations and for the disclosures that consumers receive throughout the life of an open-end account, including account-opening and periodic statements. These changes largely reflect the result of consumer testing conducted on behalf of the Board as part of its comprehensive review of the open-end credit rules.

The proposal follows the Board’s comprehensive review and takes into consideration comments from the public on two previously issued advance notices of proposed rulemaking.

The comment period will end 120 days after the publication of the proposal in the Federal Register, which is expected shortly.

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