For immediate release

The Federal Reserve Board today published revisions to its Regulation Z (Truth in Lending) official staff commentary which applies and interprets the requirements of the Regulation. The revisions are effective March 31. Compliance is optional until October 1, 1998. The revisions provide guidance for open-end credit plans that increase rates triggered by late payments or by exceeding credit limits and that have deferred payment features. Proposed changes on how creditors may determine whether credit is an open-end plan or a closed-end transaction have been substantially modified in the final revisions. In addition, the update discusses issues such as the treatment of annuity costs in reverse mortgage transactions and transaction fees imposed on checking accounts with overdraft protection. The Board's notice is attached.

Summary only | Summary and final rule (62 KB PDF)

1998 Banking and consumer regulatory policy