Summary of Proposed CARD Act Clarifications

On November 2, 2010, the Federal Reserve Board ("Board") published a proposed rule to clarify certain recent amendments to Regulation Z, particularly those implementing the Credit Card Accountability Responsibility and Disclosure Act of 2009 ("CARD Act"). While the Board indicated that the proposed rule is intended to enhance consumer protection and to facilitate compliance by resolving areas of uncertainty, the proposed rule could significantly impact current industry practices and, in some instances, would require issuers to again revise compliance policies and procedures, application and account-opening disclosures, and change in terms notices and other consumer communications. The comment period will close on January 3, 2011, and final clarifications are expected in April 2011, with a mandatory compliance date in October 2011.