Account-opening disclosures.

CFR · 2024-01-01 · US · Title 12

(a) (1) (i) A statement of when finance charges begin to accrue, including an explanation of whether or not any time period exists within which any credit extended may be repaid without incurring a finance charge. If such a time period is provided, a creditor may, at its option and without disclosure, impose no finance charge when payment is received after the time period's expiration. (ii) A disclosure of each periodic rate that may be used to compute the finance charge, the range of balances to which it is applicable, and the corresponding annual percentage rate. If a creditor offers a variable-rate plan, the creditor shall also disclose: The circumstances under which the rate(s) may increase; any limitations on the increase; and the effect(s) of an increase. When different periodic rates (iii) An explanation of the method used to determine the balance on which the finance charge may be computed. (iv) An explanation of how the amount of any finance charge will be determined, including a description of how any finance charge other than the periodic rate will be determined. (2) (3) (i) A statement of the conditions under which the creditor may take certain action, as described in § 1026.40(d)(4)(i), such as terminating the plan or changing the terms. (ii) The payment information described in § 1026.40(d)(5)(i) and (ii) for both the draw period and any repayment period. (iii) A statement that negative amortization may occur as described in § 1026.40(d)(9). (iv) A statement of

official document · source cfr-2024 · id 12:§ 1026.6