Notes on 15 U.S.C. § 1605 : US Code - Notes

Search Notes on 15 U.S.C. § 1605 : US Code - Notes

(Pub. L. 90-321, title I, Sec. 106, May 29, 1968, 82 Stat. 148;
Pub. L. 96-221, title VI Sec. 606, Mar. 31, 1980, 94 Stat. 170;
Pub. L. 104-29, Secs. 2(a), (b)(1), (c)-(e), 3(a), Sept. 30, 1995,
109 Stat. 271, 272.)
AMENDMENTS
1995 - Subsec. (a). Pub. L. 104-29, Sec. 2(a), in introductory
provisions inserted after second sentence "The finance charge shall
not include fees and amounts imposed by third party closing agents
(including settlement agents, attorneys, and escrow and title
companies) if the creditor does not require the imposition of the
charges or the services provided and does not retain the charges."
Subsec. (a)(6). Pub. L. 104-29, Sec. 2(b)(1), added par. (6).
Subsec. (d)(3). Pub. L. 104-29, Sec. 2(c), added par. (3).
Subsec. (e)(2). Pub. L. 104-29, Sec. 2(d), amended par. (2)
generally, substituting "loan-related" for "a deed, settlement
statement, or other".
Subsec. (e)(5). Pub. L. 104-29, Sec. 2(e), inserted before period
", including fees related to any pest infestation or flood hazard
inspections conducted prior to closing".
Subsec. (f). Pub. L. 104-29, Sec. 3(a), added subsec. (f).
1980 - Subsec. (a). Pub. L. 96-221, Sec. 606(a), inserted
provisions excluding charges of a type payable in comparable cash
transactions and indicated that pars. (1) to (5) are examples of
charges.
Subsec. (d). Pub. L. 96-221, Sec. 606(b), struck out pars. (3)
and (4) setting forth applicability to taxes and any other type of
charge, respectively.
EFFECTIVE DATE OF 1995 AMENDMENT
Section 2(b)(2) of Pub. L. 104-29 provided that: "The amendment
made by paragraph (1) [amending this section] shall take effect on
the earlier of -
"(A) 60 days after the date on which the Board of Governors of
the Federal Reserve System issues final regulations under
paragraph (3) [set out below]; or
"(B) the date that is 12 months after the date of the enactment
of this Act [Sept. 30, 1995]."
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96-221 effective on expiration of two years
and six months after Mar. 31, 1980, with all regulations, forms,
and clauses required to be prescribed to be promulgated at least
one year prior to such effective date, and allowing any creditor to
comply with any amendments, in accordance with the regulations,
forms, and clauses prescribed by the Board prior to such effective
date, see section 625 of Pub. L. 96-221, set out as a note under
section 1602 of this title.
REGULATIONS
Section 2(b)(3) of Pub. L. 104-29 provided that: "The Board of
Governors of the Federal Reserve System shall promulgate
regulations implementing the amendment made by paragraph (1)
[amending this section] by no later than 6 months after the date of
the enactment of this Act [Sept. 30, 1995]."
ENSURING THAT FINANCE CHARGES REFLECT COST OF CREDIT
Section 2(f) of Pub. L. 104-29 provided that:
"(1) Report. -
"(A) In general. - Not later than 6 months after the date of
the enactment of this Act [Sept. 30, 1995], the Board of
Governors of the Federal Reserve System shall submit to the
Congress a report containing recommendations on any regulatory or
statutory changes necessary -
"(i) to ensure that finance charges imposed in connection
with consumer credit transactions more accurately reflect the
cost of providing credit; and
"(ii) to address abusive refinancing practices engaged in for
the purpose of avoiding rescission.
"(B) Report requirements. - In preparing the report under this
paragraph, the Board shall -
"(i) consider the extent to which it is feasible to include
in finance charges all charges payable directly or indirectly
by the consumer to whom credit is extended, and imposed
directly or indirectly by the creditor as an incident to the
extension of credit (especially those charges excluded from
finance charges under section 106 of the Truth in Lending Act
[15 U.S.C. 1605] as of the date of the enactment of this Act),
excepting only those charges which are payable in a comparable
cash transaction; and
"(ii) consult with and consider the views of affected
industries and consumer groups.
"(2) Regulations. - The Board of Governors of the Federal Reserve
System shall prescribe any appropriate regulation in order to
effect any change included in the report under paragraph (1), and
shall publish the regulation in the Federal Register before the end
of the 1-year period beginning on the date of enactment of this
Act."