ADVERTISEMENT

Rules for credit card periodic statement disclosures

Credit card reform: The fine print of proposed changes to Regulation Z

By

With their proposed changes to periodic statement disclosure rules, federal regulators seek to reduce confusion by mandating uniform terminology and by grouping similar transactions on your monthly or periodic statement.





45 days' notice
Fixed rates
APR disclosures

Fee disclosures
Account opening disclosures
Periodic statement disclosures
Changes in credit card terms
Minimum payments
Subprime credit cards

Under the board's proposal for periodic statements, part of its proposal to make sweeping changes to Regulation Z, a vague term such as "assessment" would have to be called a "fee," and fall under the heading "fees," separated from sections labeled "Payments and Other Credits," "Purchases," "Cash Advances," "Balance Transfers" and "Interest Charged."  In addition, the statement provides total fees and total interest charged year-to-date.

Many banks, however, said the proposed changes left them little room for flexibility in design of their monthly statements. "Citi is concerned about the excessive rigidity of the Board's proposed format requirements for the periodic statement ... " Read more (Page 10)

"Bank of America recently redesigned its periodic statement. That undertaking cost several million dollars and took well over two years ... ." Read more (Page 18)

The American Bankers Association and America's Community Bankers believe "different types of customers prefer different formats. Lenders should be permitted to respond to customers' format preference and continue to use periodic statement formats as a competitive tool." Read more (Page 2)

HSBC bank notes that the proposed changes do not address inclusion of a new feature that many consumers seek out each month on their statements: the reward points and cash back bonus earned to date. " ... (U)nder the Proposed Rule, that information likely would be relegated to the bottom of the a second page ... " Read more (Page 5)

To comment on this story, write to editors@CreditCards.com.

Published: December 26, 2007


Join the discussion
We encourage an active and insightful conversation among our users. Please help us keep our community civil and respectful. For your safety, do not disclose confidential or personal information such as bank account numbers or social security numbers. Anything you post may be disclosed, published, transmitted or reused.

If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.

The editorial content on CreditCards.com is not sponsored by any bank or credit card issuer. The journalists in the editorial department are separate from the company's business operations. The comments posted below are not provided, reviewed or approved by any company mentioned in our editorial content. Additionally, any companies mentioned in the content do not assume responsibility to ensure that all posts and/or questions are answered.




Follow Us


Updated: 09-25-2016


Weekly newsletter
Get the latest news, advice, articles and tips delivered to your inbox. It's FREE.


ADVERTISEMENT