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CUNA seeks CFPB clarity on card disclosure change
WASHINGTON (8/9/12)--The Credit Union National Association (CUNA) has sought guidance with the Consumer Financial Protection Bureau (CFPB) to clarify whether a seemingly minor change in credit card account opening disclosure forms would trigger a whole new requirement for a 45-day advance notice of change in terms.

The question revolves around the transfer of Regulation Z authority to the CFPB from the Federal Reserve Board as required by the Dodd-Frank Act.

Certain changes to the bureau's version of the Open-End Model Forms require credit unions to modify their credit card applications and solicitations and their account-opening disclosures to refer to the CFPB and its website--rather than to the Fed and its website.

"Although that change may seem relatively minor," explains Mike McLain, CUNA senior compliance counsel, "such a change is defined in Reg Z as a 'significant change' and, if CFPB agreed, it would trigger a 45-day advance notice." Credit unions and other card issuers have until Jan. 1, 2013 to switch the website references in their card forms.

CUNA has clarified with the CFPB that the change should not trigger a need for a 45-day advance notice of change in terms.

"However, credit unions that want to reduce the risk of litigation may still want to send their credit card accounts a notice anyway," McLain says.


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