OCC 2004-19
OCC Bulletin

Subject:      Truth in Lending (Regulation Z)
Description:  Final Rule
 
Date:         May 7, 2004

TO:  Chief Executive Officers and Compliance officers of All National 
     Banks, Department and Division Heads, and All Examining Personnel

The Federal Reserve Board (Board) published on March 31, 2004, a final 
rule to revise Regulation Z and its official staff commentary.  The rule 
became effective April 1, 2004, with mandatory compliance beginning 
October 1, 2004.  The revisions include adding an interpretative rule of 
construction providing that where the word “amount” is used in the 
regulation to describe disclosure requirements, it refers to a numerical 
amount.  Other changes provide additional guidance on a consumer’s right 
to rescind certain home-secured loans and several technical revisions to 
the staff commentary.

Specific changes to the commentary include:

·  Clarifying that numerical amount disclosures must be expressed as a 
   dollar amount unless the regulation text or commentary indicates 
   otherwise.  Examples are provided when dollar amounts or percentages 
   must be disclosed. [Section 226.2(b)-2]

·  Stating that when a creditor fails to provide the consumer with an 
   address for sending a rescission notification, the consumer’s delivery 
   to the same person to whom or address where payments normally have 
   been sent constitutes delivery to the creditor for both open- and 
   closed-end credit. [Sections 226.15(a)(2)-1 and 226.23(a)(2)-1]

·  Clarifying that a consumer’s right to rescind is not affected by the 
   sequence of the rescission procedures or a court order modifying those 
   procedures in both open- and closed-end credit. [Sections 226.15(d)
   (4)-1 and 226.23(d)(4)-1]

·  Making technical, nonsubstantial changes to comments related to the 
   Language of Disclosures and the Requirements for Certain Closed-End 
   Home Mortgages. [Sections 226.27-1 and 226.32(a)(1)(ii)-1]

The proposed rule issued for comment in December 2003 also asked for 
comments on the clear and conspicuous standard and on debt cancellation 
and debt suspension agreements.  However, the Board decided to not adopt 
these proposed changes and will continue to review these two issues 
considering options to address commenter’s concerns.        


A copy of the final rule is attached.  You may direct any questions to 
your supervisory office, the Compliance Division at (202) 874-4428, or 
the Community and Consumer Law Division at (202) 874-5750.




_________________________
Ann F. Jaedicke
Deputy Comptroller for Compliance

Attachment: Final Rule
[http://www.occ.treas.gov/fr/fedregister/69fr16769.pdf]