Developments of Note
- FRB Adopts Amendments to Credit and Charge Card Solicitation and Application Disclosures
The FRB published revisions to the disclosure requirements for credit and charge card solicitations and applications. Regulation Z, implementing the federal Truth in Lending Act, requires that certain direct mail and other solicitations and applications to open credit and charge card accounts include disclosures in the form of a table, commonly known as the "Schumer Box." The amendments are intended to make the disclosures more noticeable and easier to understand. The amendments require that the annual percentage rate ("APR") for purchase transactions be provided in no less than 18-point type and appear under a separate heading from other APRs, such as penalty rates. APRs for cash advances and balance transfers must be included in the Schumer Box. The Schumer Box disclosures must be "readily noticeable," meaning in at least "12-point type," and in a "reasonably
