BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D.C. 20551
DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS
CA 99-14
October 12, 1999
TO THE OFFICERS AND MANAGERS IN CHARGE OF CONSUMER AFFAIRS SECTIONS:
SUBJECT: Truth in Lending Restitution Policy Guide Q's & A's
On October 16, 1998, we sent to you CA 98-9 pertaining to the revised Interagency Restitution Policy Statement on the Truth in Lending Act. The original Policy Statement issued in 1980 was revised mainly to accommodate statutory changes mandated by the Truth in Lending Act Amendments of 1995 and the Economic Growth and Regulatory Paperwork Reduction Act of 1996. Due to these changes in law, the Questions and Answers to the Policy Statement (Enclosed) have been revised as well and approved by the Federal Financial Institutions Examination Council’s Consumer Compliance Task Force for use by the agencies.
In addition, the Questions and Answers contain guidance on the application of the ruling in 1997 by the U.S. Court of Appeals for the Eleventh Circuit, regarding the interpretation of the phrase "immediately preceding examination" for determining the corrective action period for reimbursements under the Truth in Lending Act. Furthermore, the document has been reorganized to place the Questions and Answers in the following categories: General; Definitions; De Minimis Rule; Corrective Action Period; Calculating the Adjustment; Methods of Adjustment; Non-Disclosure of the APR or Finance Charge; Improper Disclosure of Credit Life, Accident, Health, or Loss of Income Insurance; and Obvious Errors.
While this document contains new questions and answers including several new questions on open-end credit, many of the questions and answers in the original document remain the same. Please distribute to your examination staff for immediate use. If you have any questions regarding this matter, please feel free to contact the review examiner assigned to your district or Anthony Iwuji at (202) 452-3254.
Sincerely,
(signed)
Shawn McNulty
Assistant Director