The Federal Reserve Board on Tuesday withdrew proposed rule revisions that would’ve more clearly defined specific disclosure requirements financial institutions must make to consumers.
The proposed revisions, published in December 2003, were intended to help ensure that consumers receive noticeable and understandable information that is required by law in connection with obtaining consumer financial products and services. They sought to define more specifically the standard for providing “clear and conspicuous” disclosures, and to provide a more uniform standard among the Board’s regulations.
The Fed withdrew proposed revisions to Regulation B (Equal Credit Opportunity), Regulation E (Electronic Fund Transfers), Regulation M (Consumer Leasing), Regulation Z (Truth in Lending) and Regulation DD (Truth in Savings).
In response to concerns raised by commenters, the Board determined more uniform disclosure standards should be achieved through proposals that focus on improving the effectiveness of individual disclosures rather than the adoption of general definitions and standards applicable across the five regulations. This effort will be undertaken in connection with the Board’s periodic review of its regulations.
An advance notice of proposed rulemaking is expected to be issued later this year under Regulation Z, focused on disclosures for open-end credit accounts.
Although the December 2003 proposals are withdrawn, the Fed said they reflect principles that institutions may find useful in creating disclosures that are clear and conspicuous. Those approaches will also help inform the Board’s review of individual disclosures, the agency said.
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