15 U.S.C. § 1665a — Use of annual percentage rate in oral disclosures; exceptions

submitted 52 years ago by Pub. L. 90-321 to r/title-15-COMMERCE-AND-TRADE · 126 words · no verdicts yet

in plain englishAI-generated · not legal advice

When a creditor answers an oral question about credit cost, it generally must quote rates only as annual percentage rates. The Bureau may change or waive this rule for transactions where the annual percentage rate cannot be known in advance.

(a) A creditor answering orally any question about the cost of credit must state rates only as annual percentage rates, regardless of how finance charges are calculated. For an open-end plan, the creditor may also state the periodic rate. For a non-open-end plan whose finance charge mainly consists of interest calculated at a simple annual rate, the creditor may also state that simple annual rate. (b) The Bureau may by regulation change this requirement or create an exception for a transaction or class of transactions where the creditor cannot determine the applicable annual percentage rate in advance.

the actual law source: uscode.house.gov ↗public domain

In responding orally to any inquiry about the cost of credit, a creditor, regardless of the method used to compute finance charges, shall state rates only in terms of the annual percentage rate, except that in the case of an open end credit plan, the periodic rate also may be stated and, in the case of an other than open end credit plan where a major component of the finance charge consists of interest computed at a simple annual rate, the simple annual rate also may be stated. The Bureau may, by regulation, modify the requirements of this section or provide an exception from this section for a transaction or class of transactions for which the creditor cannot determine in advance the applicable annual percentage rate.

Source credit: (Pub. L. 90–321, title I, § 146, as added Pub. L. 93–495, title IV, § 401(a), Oct. 28, 1974, 88 Stat. 1517; amended Pub. L. 96–221, title VI, § 623(a), Mar. 31, 1980, 94 Stat. 185; Pub. L. 111–203, title X, § 1100A(2), July 21, 2010, 124 Stat. 2107.)

history & why it existsrecord from the source credit

1974Enacted · Pub. L. 90-321 · 88 Stat. 1517
1980Amended · Pub. L. 96-221 · 94 Stat. 185
2010Amended · Pub. L. 111-203 · 124 Stat. 2107

A history note hasn’t been published yet. The record shows enactment by Pub. L. 90-321 on 1974-10-28.

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