H. The Consumer Credit Protection Act of 1968, as amended, referred to as Truth-in-Lending, aims to help consumers understand the details of credit. It also allows consumers to readily compare the costs of obtaining credit. Regulation Z (Summary) The Federal Reserve board is charged with preparing regulations to implement Regulation Z, which implements the provisions of the act, governs the manner in which a credit union advertises and discloses the cost and terms for loans granted to its members, including: The right of a borrower to cancel some types of consumer credit arrangements within three business days if his or her principal residence is used as collateral. Restrictions on credit advertising as well as on the issuance of credit cards. A cardholder's maximum liability for the authorized use of credit cards. The rights of borrowers regarding resolution of questions about billing disputes. It also imposes certain billing disclosure requirement on creditors. Disclosure requirements for advertising credit and making contracts. Regulation Z applies only to consumer credit, defined as a loan to a member that will be used primarily for person, family or household use. A loan that the following qualifications is subject to Regulation Z. The loan must be to an individual person. Loans granted to corporations, joint ventures, or organizations are exempt from the regulation. The loans must be primarily for personal, family or household purposes. Loans for business and agricultural purposes are exempt. The loan must be one that is payable in more than four installments or one for which a finance charge is or may be required or one made pursuant to the use of a credit card. The loan must be for $25,000 or less, unless it is secured by real property or by personal property (such as a mobile home) used or expected to be used as the borrower's principal dwelling, in which cases no limit applies. Truth-in-Lending Simplification Act (Summary) When the original Consumer Credit Protection Act was passed in 1968, it came in response to a general perception among members of Congress that the American consumer was not really aware of the costs of credit. Creditors were not providing clear and concise information concerning such costs. Although the initial concept was a simple one, over the years implementation and compliance became a nightmare for creditors. Many credit union managers who had never been involved in litigation before found themselves in the midst of highly technical Truth-in-Lending claims or defenses. Simple clerical errors, printing errors and other minor oversights resulted in costly penalties and losses of loan principal and interest due.
H. The Consumer Credit Protection Act of 1968, as amended, referred to as Truth-in-Lending, aims to help consumers understand the details of credit. It also allows consumers to readily compare the costs of obtaining credit. Regulation Z (Summary) The Federal Reserve board is charged with preparing regulations to implement Regulation Z, which implements the provisions of the act, governs the manner in which a credit union advertises and discloses the cost and terms for loans granted to its members, including: The right of a borrower to cancel some types of consumer credit arrangements within three business days if his or her principal residence is used as collateral. Restrictions on credit advertising as well as on the issuance of credit cards. A cardholder's maximum liability for the authorized use of credit cards. The rights of borrowers regarding resolution of questions about billing disputes. It also imposes certain billing disclosure requirement on creditors. Disclosure requirements for advertising credit and making contracts. Regulation Z applies only to consumer credit, defined as a loan to a member that will be used primarily for person, family or household use. A loan that the following qualifications is subject to Regulation Z. The loan must be to an individual person. Loans granted to corporations, joint ventures, or organizations are exempt from the regulation. The loans must be primarily for personal, family or household purposes. Loans for business and agricultural purposes are exempt. The loan must be one that is payable in more than four installments or one for which a finance charge is or may be required or one made pursuant to the use of a credit card. The loan must be for $25,000 or less, unless it is secured by real property or by personal property (such as a mobile home) used or expected to be used as the borrower's principal dwelling, in which cases no limit applies. Truth-in-Lending Simplification Act (Summary) When the original Consumer Credit Protection Act was passed in 1968, it came in response to a general perception among members of Congress that the American consumer was not really aware of the costs of credit. Creditors were not providing clear and concise information concerning such costs. Although the initial concept was a simple one, over the years implementation and compliance became a nightmare for creditors. Many credit union managers who had never been involved in litigation before found themselves in the midst of highly technical Truth-in-Lending claims or defenses. Simple clerical errors, printing errors and other minor oversights resulted in costly penalties and losses of loan principal and interest due.
cf-la_policies__bylaws_reviewed_05-10-17_current_revision.docx