FRB: Consumer Affairs Letter CA 08 - 5 - Updated Interagency Examination Procedures for Regulations Z and M

The Task Force on Consumer Compliance of the Federal Financial Institutions Examination Council recently approved the attached updated examination procedures for Regulations Z (Truth in Lending) and M (Consumer Leasing).

The updated procedures incorporate amendments to the regulations (and staff commentaries) related to electronic disclosures (72 Federal Register 63462, Regulation Z, and 72 Federal Register 63456, Regulation M). The regulatory amendments withdraw portions of the interim final rules for electronic disclosures issued by the Federal Reserve on March 20, 2001, while retaining the provisions allowing disclosures in electronic form, subject to compliance with the consumer consent and other applicable provisions of the Electronic Signatures in Global and National Commerce Act (E-Sign Act). Specifically, the Board withdrew portions of the 2001 interim final rule that restated or cross-referenced provisions of the E-Sign Act, and withdrew other provisions that the Board believed would impose undue burdens on electronic banking and commerce and may be unnecessary for consumer protection. For example, the Board withdrew the requirement in the interim final rule that disclosures be posted on an institution’s web site for at least 90 days.

If you have any questions, please contact Eric Morris, Supervisory Consumer Financial Services Analyst, (202) 452-3946, or Paul Robin, Manager, Oversight and Policy, at (202) 452-3140.

Sincerely,
(signed)

Sandra F. Braunstein
Director
Division of Consumer and Community Affairs

Supersedes: CA Letter 03-5 (March 21, 2003) and CA Letter 03-3 (January 30, 2003)