Credit Card Agreement Requirements

(a) Definition. For the purposes of this section, the term « out-of-bounds transaction » means any credit renewal by a card issuer to complete a transaction that results in a consumer`s credit card balance exceeding the credit limit. For the above reasons, issuers are required to submit their annual reports regarding college credit card marketing agreements and data through Collect, beginning with deposits due on March 31, 2022,[41] and continuing to do so on an ongoing basis. In other words, a card issuer that was a party to one or more college credit card marketing agreements that were in effect at any time during the 2021 calendar year must use Collect to submit an annual report on those agreements to the office by March 31, 2022. Subsequent annual submissions must also be made continuously via Collect. Issuers who are not yet using Collect can begin the registration process immediately. Once the issuer has received their credentials, they will have the option to file the required documents with Collect from January 2022. For more information, see the technical specifications in Part II below. i.

Pursuant to section 1026.58(c)(6)(i), a card issuer is not required to submit a credit card agreement to the Bureau if agreement (A) is offered from the last business day of the calendar quarter for accounts under one or more private label credit card plans, each with less than 10,000 accounts opened; and (B) available to the public only for accounts under such a plan. For example, a card issuer offers the public a credit card agreement offered exclusively for private label credit card accounts with credit cards that can only be used at Merchant A. The card issuer has 8,000 accounts opened with such credit cards that can only be used at Merchant A. The card issuer is not required to submit this agreement to the Bureau under section 1026.58(c)(1) because the agreement is available for a private label credit card plan with fewer than 10,000 open accounts and the credit card agreement is not available to the public, except for accounts under this private label credit card plan. (a) definitions. (1) College student`s credit card. The term « college student credit card, » as used in this section, refers to a credit card issued as part of a consumer credit card account that is open (and not home-based) for each student. 3. Clarification of the date on which the card issuer is qualified.

Whether a card issuer is eligible for the de minimis exception is decided on the last working day of each calendar quarter. For example, as of December 31, a card issuer is offering three agreements to the public and has 9,500 credit card accounts open. As of January 30, the card issuer still offers three deals, but has 10,100 accounts open. As of March 31, the card issuer still offered three deals, but had only 9,700 accounts open. Although the card issuer has already had 10,100 accounts opened during the calendar quarter, the card issuer is eligible for the de minimis exception because the number of accounts opened as of March 31 was less than 10,000. The card issuer is therefore not required to submit agreements to the Presidium before 30 April in accordance with § 1026.58 (c) (1). (3) Date of reports. With the exception of the original report described in point 3 of this paragraph (d), the card issuer shall submit to the Bureau its annual report for each calendar year no later than the first working day of 31 March of the following calendar year.

Under the Paperwork Reduction Act of 1995 (PRA),[50] federal organizations are generally required to obtain approval from the Office of Management and Budget (OMB) for information gathering requirements prior to implementation. Under the PRA, the Bureau may not conduct any conduct or sponsorship, and notwithstanding any other legal requirement, any individual is not required to respond to any collection of information unless the collection of information shows a valid control number assigned by the OMB. Collections of information related to this rule have already been reviewed and approved by omB and assigned THE OMB tracking numbers 3170-0001 and 3170-0052. The Bureau noted that these technical specifications do not impose any new registration, reporting or disclosure requirements on the companies or members of the public concerned, which would be collections of information that would require OMB approval under the PRA. Rather, the Bureau believes that these specifications will slightly reduce the financial burden on covered businesses compared to existing bidding practices. (ii) If the card issuer publishes an agreement on its website or otherwise makes an agreement available to a cardholder electronically in accordance with section 1026.58(e), the agreement may be published or made available in any electronic format that is readily available to the general public and must be placed in a place that is clearly visible and accessible to the cardholder. Federal law requires all credit card issuers with more than 10,000 credit card accounts to register a copy of their credit card agreements online. Your credit card issuer must also provide you with a copy of your account`s credit card agreement when you request it. 1. The requirement applies only to agreements submitted to the Bureau.

Card issuers are only required to publish and maintain on their publicly available websites credit card agreements that the card issuer is required to submit to the Agency pursuant to section 1026.58(c). If, for example, a card issuer is not obliged to submit agreements to the Presidium because it qualifies for the de minimis exception under Article 1026.58(c)(5), the card issuer is not required to publish and maintain agreements on its website in accordance with § 1026.58(d). If a card issuer is not obliged to submit a specific agreement to the Presidium, such as.B. an agreement eligible for the private label exemption under § 1026.58(c)(6) is not obligated by the card issuer to publish and maintain this agreement in accordance with § 1026.58(d) (either on the card issuer`s publicly accessible website or on merchants` publicly accessible websites where private label credit cards may be used). (In both cases, the card issuer is also required to grant each cardholder access to their specific credit card agreement pursuant to section 1026.58(e) by posting and maintaining the agreement on the card issuer`s website or by providing a copy of the agreement at the request of the cardholder.) (b) Specific provisions. (1) Accounts whose balances are subject to deferred interest or similar programs. If a balance in a credit card account under an open consumer credit plan (not secured by a house) is subject to a deferred interest rate or similar program that provides that a consumer is not required to pay accrued interest on the balance if the balance is paid in full before the end of a certain period: (1) The account is closed or acquired by another creditor; or (i) if a card issuer discloses an APR, fee or surcharge in accordance with section 1026.9(b), the card issuer may not apply that rate, fee or charge to transactions that took place prior to the provision of the notice; (e) Advertising Waivers or Discounts on Interest, Fees and Other Charges. If a card issuer promotes the waiver or refund of financing fees due to a periodic interest rate or any fees or charges or charges required to be disclosed under section 1026.6(b) (2) (ii), (iii) or (xii) and applies the waiver or discount of a credit card account under an open (unsecured at home) consumer credit plan, any termination of the waiver or discount on this account constitutes an increase in the annual Percentage waiver. Fees or charges for the purposes of this Section.

(b) policies and procedures. The card issuer must have appropriate written policies and procedures in place to conduct the verification described in paragraph (a) of this section. (5) Offers. For the purposes of this Section, an issuer « offers » or « offers » an agreement publicly when it requests or accepts account requests that would be subject to that agreement. We display consumer credit card agreements in this database as submitted by the respective issuers. The CFPB is not responsible for the content of the agreements, including any discrepancies between an agreement as presented in this database and the agreement as made available to the public, or any omission or other error in the agreement as presented by the issuer. .