Finance Charges for Consumer Credit Under the Truth in Lending Act
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Community Reinvestment Act Regulations
DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency 12 CFR Parts 25 and 195 [Docket ID OCC-2021-0014] RIN 1557–AF12 Community Reinvestment Act Regulations AGENCY: Office of the Comptroller of the Currency, Treasury. ACTION: Notice of proposed rulemaking. SUMMARY: The Comptroller of the Currency proposes to replace the current Community Reinvestment Act rule with rules based on the 1995 Community Reinvestment Act (CRA) rules, as revised, issued by the Office of the Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System (Board), and Federal Deposit Insurance Corporation (FDIC). The proposal would replace the existing rule in 12 CFR part 25 and reinstate 12 CFR part 195 (for savings associations). Such action would effectively rescind the CRA final rule published by the Office of the Comptroller of the Currency on June 5, 2020, and facilitate the issuance of joint CRA rules with the Board and FDIC. DATES: Comments must be received on or before October 29, 2021. ADDRESSES: Commenters are encouraged to submit comments through the Federal eRulemaking Portal. Please use the title “Community Reinvestment Act Regulations” to facilitate the organization and distribution of the comments. You may submit comments by any of the following methods: 1 Federal eRulemaking Portal – Regulations.gov: Go to https://regulations.gov/. Enter “Docket ID OCC-2021-0014” in the Search Box and click “Search.” Public comments can be submitted via the “Comment” box below the displayed document information or by clicking on the document title and then clicking the “Comment” box on the top-left side of the screen. -
A Financial System That Creates Economic Opportunities Nonbank Financials, Fintech, and Innovation
U.S. DEPARTMENT OF THE TREASURY A Financial System That Creates Economic Opportunities A Financial System That T OF EN TH M E A Financial System T T R R A E P A E S That Creates Economic Opportunities D U R E Y H T Nonbank Financials, Fintech, 1789 and Innovation Nonbank Financials, Fintech, and Innovation Nonbank Financials, Fintech, TREASURY JULY 2018 2018-04417 (Rev. 1) • Department of the Treasury • Departmental Offices • www.treasury.gov U.S. DEPARTMENT OF THE TREASURY A Financial System That Creates Economic Opportunities Nonbank Financials, Fintech, and Innovation Report to President Donald J. Trump Executive Order 13772 on Core Principles for Regulating the United States Financial System Steven T. Mnuchin Secretary Craig S. Phillips Counselor to the Secretary T OF EN TH M E T T R R A E P A E S D U R E Y H T 1789 Staff Acknowledgments Secretary Mnuchin and Counselor Phillips would like to thank Treasury staff members for their contributions to this report. The staff’s work on the report was led by Jessica Renier and W. Moses Kim, and included contributions from Chloe Cabot, Dan Dorman, Alexan- dra Friedman, Eric Froman, Dan Greenland, Gerry Hughes, Alexander Jackson, Danielle Johnson-Kutch, Ben Lachmann, Natalia Li, Daniel McCarty, John McGrail, Amyn Moolji, Brian Morgenstern, Daren Small-Moyers, Mark Nelson, Peter Nickoloff, Bimal Patel, Brian Peretti, Scott Rembrandt, Ed Roback, Ranya Rotolo, Jared Sawyer, Steven Seitz, Brian Smith, Mark Uyeda, Anne Wallwork, and Christopher Weaver. ii A Financial System That Creates Economic -
Adjustable-Rate Mortgage (ARM) Is a Loan with an Interest Rate That Changes
The Federal Reserve Board Consumer Handbook on Adjustable-Rate Mortgages Board of Governors of the Federal Reserve System www.federalreserve.gov 0412 Consumer Handbook on Adjustable-Rate Mortgages | i Table of contents Mortgage shopping worksheet ...................................................... 2 What is an ARM? .................................................................................... 4 How ARMs work: the basic features .......................................... 6 Initial rate and payment ...................................................................... 6 The adjustment period ........................................................................ 6 The index ............................................................................................... 7 The margin ............................................................................................ 8 Interest-rate caps .................................................................................. 10 Payment caps ........................................................................................ 13 Types of ARMs ........................................................................................ 15 Hybrid ARMs ....................................................................................... 15 Interest-only ARMs .............................................................................. 15 Payment-option ARMs ........................................................................ 16 Consumer cautions ............................................................................. -
Overdraft: Payment Service Or Small-Dollar Credit?
March 16, 2020 Overdraft: Payment Service or Small-Dollar Credit? Funding Gaps in Consumer Finances Figure 1. Annual Interest and Noninterest Income One of the earliest documented cases of bank overdraft U.S. Commercial Banks, 1970-2018 ($ millions) dates back to 1728, when a Royal Bank of Scotland customer requested a cash credit to allow him to withdraw more money from his account than it held. Three centuries later, technologies, such as electronic payments (e.g., debit cards) and automated teller machines (ATMs), changed the way consumers use funds for retail purchases, transacting more frequently and in smaller denominations. Accordingly, today’s financial institutions commonly offer point-of-sale overdraft services or overdraft protection in exchange for a flat fee around $35. Although these fees can be large relative to the transaction, alternative sources of short-term small-dollar funding, such as payday loans, deposit advances, and installment loans, can be costly as well. Congress has taken an interest in the availability and cost of providing consumers funds to meet Source: Federal Deposit Insurance Corporation (FDIC). their budget shortfalls. Legislation introduced in the 116th Congress (H.R. 1509/S. 656 and H.R. 4254/S. 1595) as well Banks generate noninterest income in a number of ways. as the Federal Reserve’s real-time payments initiative could For example, a significant source of noninterest income impact consumer use of overdraft programs in various comes from collecting fees for deposit accounts services, ways. (See “Policy Tools and Potential Outcomes” below such as maintaining a checking account, ATM withdrawals, for more information.) The policy debate around this or covering an overdraft. -
LOAN RATES America First Credit Union Offers Members Competitive Loan Rates, Listed Below
LOAN RATES America First Credit Union offers members competitive loan rates, listed below. The annual percentage rates (APR) quoted are based on approved credit. Rates may be higher, depending on your credit history and other underwriting factors. Our loan offices will discuss your application and available rates with you. Variable APRs may increase or decrease monthly. Go to americafirst.com or call 1-800-999-3961 for more information. EFFECTIVE: OCTOBER 1, 2021 VARIABLE APR FIXED APR FEE DISCLOSURES VEHICLE 2.99% - 18.00% 2.99% - 18.00% ANNUAL PERCENTAGE RATE (APR) FOR PURCHASES 60-MONTH DECLINING RATE AUTO N/A 3.24% - 18.00% When you open your account, the applicable APR is based on creditworthiness. SMALL RV LOAN 4.49% - 15.24% 5.49% - 16.24% After that, your APR will vary with the market based on the Prime Rate. RV LOAN 4.49% - 15.74% 5.49% - 16.74% APR FOR CASH ADVANCES & BALANCE TRANSFERS When you open your account, the applicable APR is based on creditworthiness. RV BALLOON N/A 5.49% - 6.74% After that, your APR will vary with the market based on the Prime Rate. PERSONAL 8.49% - 18.00% 9.49% - 18.00% HOW TO AVOID PAYING INTEREST ON PURCHASES LINE OF CREDIT 15.24% - 18.00% Your due date is the 28th day of each month. We will not charge any interest on the portion of the purchases balance that you pay by the due date each month. SHARE-SECURED LINE OF CREDIT 3.05% FOR CREDIT CARD TIPS FROM THE CONSUMER FINANCIAL PROTECTION CONSUMER SHARE LOAN + 3.00% BUREAU CREDIT BUILDER PLUS 10.00% To learn more about factors to consider when applying for or using a credit card, visit the Consumer Financial Protection Bureau at CERTIFICATE ACCOUNT * 3.00% consumerfinance.gov/learnmore. -
Stopping the Payday Loan Trap Alternatives That Work, Ones That Don’T
Stopping the payday Loan trap AlternAtives thAt Work, ones thAt Don’t NCLC® NATIONAL CONSUMER June 2010 L AW C E N T E R® © Copyright 2010, National Consumer Law Center, Inc. All rights reserved. About the Authors Lauren K. Saunders is the Managing Attorney of NCLC’s Washington, DC office, where she handles legislative, administrative and other advocacy efforts on behalf of low income consumers. She contributes to several NCLC publications, including Fair Credit Reporting, Fair Debt Collection and Consumer Banking and Payments Law. She graduated magna cum laude from Harvard Law School where she was an Executive Editor of the Harvard Law Review, and holds a Masters in Public Policy from Harvard’s Kennedy School of Government and a B.A., Phi Beta Kappa, from Stanford University. Leah A. Plunkett is a staff attorney at NCLC, where she focuses on predatory small dollar loans, auto policy, protection of exempt funds, and the consumer needs of domestic violence survivors. Before coming to NCLC, Leah clerked in the United States District Court for the District of Maryland and established the Youth Law Project at New Hampshire Legal Assistance. Leah is a cum laude graduate of Harvard Law School, where she was on the board of both the Harvard Legal Aid Bureau and HLS for Choice. Carolyn Carter is NCLC’s Deputy Director for Advocacy. She is a contributing author to Cost of Credit, Truth in Lending, Unfair and Deceptive Acts and Practices and several other NCLC treatises. Prior to joining NCLC, she worked for legal services programs in Ohio and Pennsylvania. -
Payday Lending in America
An overview from Oct 2013 Report 3 in the Payday Lending in America series Payday Lending in America: Policy Solutions Overview About 20 years ago, a new retail financial product, the payday loan, began to spread across the United States. It allowed a customer who wanted a small amount of cash quickly to borrow money and pledge a check dated for the next payday as collateral. Twelve million people now use payday loans annually, spending an average of $520 in interest to repeatedly borrow an average of $375 in credit. In the 35 states that allow this type of lump-sum repayment loan, customers end up having to borrow again and again—paying a fee each time. That is because repaying the loan in full requires about one-third of an average borrower’s paycheck, not leaving enough money to cover everyday living expenses without borrowing again. In Colorado, lump-sum payday lending came into use in 1992. The state was an early adopter of such loans, but the situation is now different. In 2010, state lawmakers agreed that the payday loan market in Colorado had failed and acted to correct it. Legislators forged a compromise designed to make the loans more affordable while granting the state’s existing nonbank lenders a new way to provide small-dollar loans to those with damaged credit histories. The new law changed the terms for payday lending from a single, lump-sum payment to a series of installment payments stretched out over six months and lowered the maximum allowable interest rates. As a result, borrowers in Colorado now pay an average of 4 percent of their paychecks to service the loans, compared with 36 percent under a conventional lump-sum payday loan model. -
MLA Faqs 08.22
Frequently Asked Questions about the Defense Department’s Military Lending Act Regulations The following is intended to help pawnbrokers prepare for the October 3, 2016 mandatory compliance date for the expanded Military Lending Act (MLA) regulations. This information is not intended as, and should not be used as, a substitute for guidance from your local lawyer. What is the Military Lending Act? The MLA was enacted by Congress in 2006, and the DOD adopted a regulation to implement it in 2007, but did not cover pawn transactions. The DOD expanded the scope of the regulation to cover additional consumer credit products on July 22, 2015 (“2015 regulation”), and specifically mentioned pawn transactions. When does compliance with the DOD’s 2015 regulation become mandatory for pawn transactions? October 3, 2016, unless extended by the DOD or otherwise by Congress or a court of law. What types of transactions does DOD’s expanded regulation govern? The 2015 regulation applies to pawns if the borrowers or pledgers are active duty service members, their spouse or other dependent who receives 51% or more of their support from the service member. These consumers are “covered borrowers”. No traditional non-recourse pawn transaction entered into before October 3, 2016 is affected by the 2015 regulation. The 2015 regulation does not affect pawns entered into before your customer became an active duty service member or dependent of one. What are the key requirements of DOD’s regulation? The 2015 regulation: • caps the maximum Annual Percentage Rate -
Major Banking Laws
Major U.S. Banking Laws The most important laws that have affected the banking industry in the United States are listed below (in chronological order). • National Bank Act of 1864 (Chapter 106, 13 STAT. 99). Established a national banking system and the chartering of national banks. • Federal Reserve Act of 1913 (P.L. 63-43, 38 STAT. 251, 12 USC 221). Established the Federal Reserve System as the central banking system of the U.S. • The McFadden Act of 1927 (P.L. 69-639, 44 STAT. 1224). Amended the National Banking Laws and the Federal Reserve Act and prohibited interstate banking. • Banking Act of 1933 (P.L. 73-66, 48 STAT. 162). Also known as the Glass-Steagall Act. Established the FDIC as a temporary agency. Separated commercial banking from investment banking, establishing them as separate lines of commerce. • Banking Act of 1935 (P.L. 74-305, 49 STAT. 684). Established the FDIC as a permanent agency of the government. It extended the branching provisions of the Banking Act of 1933 to FDIC non-members and required state member banks to obtain Federal Reserve Board approval of new branches. • Soldiers and Sailors Civil Relief Act of 1940 (50 App. U.S.C. § 501). The Soldiers' and Sailors' Civil Relief Act of 1940 (SSCRA), as amended, was passed by Congress to provide protection for individuals entering or called to active duty in the military service. It is intended to postpone or suspend certain civil obligations to enable servicemembers to devote full attention to duty. The Act applies to the United States, the states, the District of Columbia, all U.S. -
Regulation Z - Truth in Lending 4 Loans - Closed End Credit 5 DEFINITION of CLOSED END CREDIT 6 DEFINITION of FINANCE CHARGE 7 Yes/No Comments 8 1
Charter Eff. Date 12/30/1899 A B D 3 Regulation Z - Truth in Lending 4 Loans - Closed End Credit 5 DEFINITION OF CLOSED END CREDIT 6 DEFINITION OF FINANCE CHARGE 7 Yes/No Comments 8 1. Does it appear the following are accurately disclosed: 9 a. Finance Charge Calculation (226.4) b. Annual Percentage Rate (APR) (226.22) (Considered 10 accurate if within 1/8 of 1%.) 11 c. Total of Payments (226.18(h)) 12 d. Payment Schedules (226.18(g) 2. Does it appear "credit sale" disclosures are made when 13 required? (226.18(j)) 3. Does it appear variable-rate disclosures are made, if 14 applicable? (226.18(f)) 4. Are required terms with explanatory language used? 15 (226.18) 5. Does it appear the “amount financed” itemization is 16 made or offered? (226.18(c)) 6. Does it appear all other disclosures are made? (226.18(a- 17 r)) 7. Are disclosures grouped together and segregated from all 18 other information? (226.17(a)(1)) 8. Does it appear disclosures are made before 19 consummation of the transaction? (226.17(b)) 9. For closed end dwelling-secured loans subject to RESPA, does it appear early disclosures are delivered or mailed within three (3) business days after receiving the consumer's written application, and at least seven (7) business days before consummation? (226.19(a)(1)) and (226.19(a)(2)) 20 10. For closed end dwelling-secured loans subject to RESPA, if the APR stated in the early disclosure is not considered accurate under 226.22 when compared to the APR at consumation, does it appear corrected disclosures of all changed terms, including the APR, are provided no later than three (3) business days before consummation? 21 (226.19(a)(2)) 11. -
Extensions of Remarks E1083 EXTENSIONS of REMARKS
May 7, 2009 CONGRESSIONAL RECORD — Extensions of Remarks E1083 EXTENSIONS OF REMARKS MORTGAGE REFORM AND ANTI- risk. I believe that if these provisions had been LOCAL LAW ENFORCEMENT HATE PREDATORY LENDING ACT in place 10 years ago, the foreclosure crisis CRIMES PREVENTION ACT OF 2008 might have been averted. We cannot turn SPEECH OF SPEECH OF back time. But we can learn—and if we have HON. STENY H. HOYER learned anything, it is how much we need leg- HON. LUCILLE ROYBAL-ALLARD OF MARYLAND islation like this. I urge my colleagues to sup- OF CALIFORNIA IN THE HOUSE OF REPRESENTATIVES port it. IN THE HOUSE OF REPRESENTATIVES Wednesday, May 6, 2009 Wednesday, April 29, 2009 The House in Committee of the Whole f Ms. ROYBAL-ALLARD. Mr. Speaker, I was House on the State of the Union had under proud to cast my vote along with 249 other consideration the bill (H.R. 1728) to amend MOURNING THE PASSING OF members of the House of Representatives in the Truth in Lending Act to reform con- RUSSELL DUNHAM favor of the Local Law Enforcement Hate sumer mortgage practices and provide ac- Crimes Prevention Act. This legislation will countability for such practices, to provide certain minimum standards, for consumer protect Americans by expanding the definition mortgage, loans, and for other purposes: HON. JOHN SHIMKUS of hate crimes and providing law enforcement Mr. HOYER. Mr. Chair, it is well-known by OF ILLINOIS officers with the tools they need to prosecute now that our economic crisis began as a fore- these heinous crimes. -
Payday Loans = Costly Cash
Payday Loans = Costly Cash Payday lenders lure consumes with messages like “Get cash until payday! $100 or more…fast!” These ads are on the radio, television, the Internet and even in the mail. These types of loans go by a variety of names: payday loans, cash advance loans, check advance loans, post-dated check loans or deferred deposit check loans – and they come at a very high price. How payday loans work • Usually, a borrower writes a personal check payable to the lender for the amount he or she wishes to borrow plus a fee. The company gives the borrower the amount of the check minus the fee. • Fees charged for payday loans are usually a percentage of the face value of the check or a fee charged per amount borrowed - say, for every $50 or $100 loaned. • If you extend or "roll-over" the loan - say for another two weeks - you will pay the fees for each extension. • Payday lenders create a cycle of debt, encourage chronic borrowing and hold annual interest rates as high at 400%. • Under the Truth in Lending Act, the cost of payday loans - like other types of credit - must be disclosed. Among other information, you must receive, in writing, the finance charge (a dollar amount) and the annual percentage rate or APR (the cost of credit on a yearly basis). • Let's say you write a personal check for $115 to borrow $100 for up to 14 days. The check casher or payday lender agrees to hold the check until your next payday. At that time, depending on the particular plan, the lender deposits the check, you redeem the check by paying the $115 in cash, or you roll-over the check by paying a fee to extend the loan for another two weeks.