For immediate release

The Federal Reserve Board on Friday issued revisions to the official staff commentary that applies and interprets the requirements of Regulation Z, which implements the Truth in Lending Act. The commentary revisions discuss the status of certain credit card-related fees and the rules for replacing an accepted credit card with one or more cards. In addition, the commentary revisions discuss the disclosure of private mortgage insurance premiums and the selection of Treasury security yields for determining whether a mortgage loan is covered by provisions in Regulation Z that implement the Home Ownership and Equity Protection Act. At the time the proposed commentary revisions were published in December 2002, the Board also requested comment and information from the public about the design and operation of overdraft or "bounced check" protection services. Board staff is continuing to gather information on these services and will determine at a later date whether additional guidance for financial institutions is warranted under Regulation Z or other laws. The revisions are effective April 1, 2003. The date for mandatory compliance is October 1, 2003. The final rule is attached. Attachment (42 KB PDF)

2003 Banking and consumer regulatory policy