Proposed Amendments to Regulation Z: Disclosures of Credit and Charge Card Solicitations and Applications
Comments Requested by July 18
May 30, 2000
Circular No. 11249

To All Depository Institutions in the Second Federal Reserve District:

The following is from a statement issued by the Board of Governors of the Federal Reserve System:

The Federal Reserve Board has published proposed amendments to Regulation Z, Truth in Lending, revising the disclosure requirements for credit and charge card solicitations and applications.

Comments are requested by July 18, 2000.

Under Regulation Z, direct mail and other applications and solicitations to open card accounts must disclose the annual percentage rate (APR) and other cost information, generally in the form of a table. The proposed amendments are intended to make the disclosure more noticeable and easier to understand.

The APR for purchase transactions would be subject to a minimum type-size requirement. The requirement that disclosures be "clear and conspicuous" would be more strictly construed. The proposed revisions also would provide additional guidance on the requirement that the table be prominently located, and on the level of detail about cost information required or permitted in the table.

The Board's official notice (pdf - 158kb), as published in the Federal Register of May 24, is available. Comments should be sent to the Board, as specified in the notice, by mail or electronically to the Board's e-mail address --