15 U.S.C. § 1667 — Definitions

Page 1545 TITLE 15—COMMERCE AND TRADE § 1667 1 See Adjustments for Inflation note below. 2 See References in Text note below. § 1666i–2. Additional limits on interest rate in- creases (a) Limitation on increases within first year Except in the case of an increase described in paragraph (1), (2), (3), or (4) of section 1666i–1(b) of this title, no increase in any annual percent- age rate, fee, or finance charge on any credit card account under an open end consumer credit plan shall be effective before the end of the 1- year period beginning on the date on which the account is opened. (b) Promotional rate minimum term No increase in any annual percentage rate ap- plicable to a credit card account under an open end consumer credit plan that is a promotional rate (as that term is defined by the Bureau) shall be effective before the end of the 6-month period beginning on the date on which the pro- motional rate takes effect, subject to such rea- sonable exceptions as the Bureau may establish, by rule. (Pub. L. 90–321, title I, § 172, as added Pub. L. 111–24, title I, § 101(d), May 22, 2009, 123 Stat. 1738; amended Pub. L. 111–203, title X, § 1100A(2), July 21, 2010, 124 Stat. 2107.) Editorial Notes AMENDMENTS 2010—Subsec. (b). Pub. L. 111–203 substituted ‘‘Bu- reau’’ for ‘‘Board’’ in two places. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the des- ignated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees. EFFECTIVE DATE Section effective 9 months after May 22, 2009, except as otherwise specifically provided, see section 3 of Pub. L. 111–24, set out as an Effective Date of 2009 Amend- ment note under section 1602 of this title. § 1666j. Applicability of State laws (a) Consistency of provisions This part does not annul, alter, or affect, or exempt any person subject to the provisions of this part from complying with, the laws of any State with respect to credit billing practices, ex- cept to the extent that those laws are incon- sistent with any provision of this part, and then only to the extent of the inconsistency. The Bu- reau is authorized to determine whether such in- consistencies exist. The Bureau may not deter- mine that any State law is inconsistent with any provision of this part if the Bureau deter- mines that such law gives greater protection to the consumer. (b) Exemptions by Bureau from credit billing re- quirements The Bureau shall by regulation exempt from the requirements of this part any class of credit transactions within any State if it determines that under the law of that State that class of transactions is subject to requirements substan- tially similar to those imposed under this part or that such law gives greater protection to the consumer, and that there is adequate provision for enforcement. (c) Finance charge or other charge for credit for sales transactions involving cash discounts Notwithstanding any other provisions of this subchapter, any discount offered under section 1666f(b) of this title shall not be considered a fi- nance charge or other charge for credit under the usury laws of any State or under the laws of any State relating to disclosure of information in connection with credit transactions, or relat- ing to the types, amounts or rates of charges, or to any element or elements of charges permis- sible under such laws in connection with the ex- tension or use of credit. (Pub. L. 90–321, title I, § 173, formerly § 171, as added Pub. L. 93–495, title III, § 306, Oct. 28, 1974, 88 Stat. 1516; amended Pub. L. 94–222, § 3(d), Feb. 27, 1976, 90 Stat. 198; renumbered § 173, Pub. L. 111–24, title I, § 101(b)(1), May 22, 2009, 123 Stat. 1736; Pub. L. 111–203, title X, §§ 1087, 1100A(2), July 21, 2010, 124 Stat. 2086, 2107.) Editorial Notes CODIFICATION Pub L. 111–203, § 1100A(2), which directed the substi- tution of ‘‘Bureau’’ for ‘‘Board’’ wherever appearing in title I of Pub. L. 90–321, was executed to this section, which is section 173 of title I of Pub. L. 90–321. Section 1087 of Pub. L. 111–203, which directed the making of an identical amendment in title III of Pub. L. 93–495, which added this section to title I of Pub. L. 90–321, has not been executed. AMENDMENTS 2010—Subsecs. (a), (b). Pub. L. 111–203, § 1100A(2), sub- stituted ‘‘Bureau’’ for ‘‘Board’’ wherever appearing. See Codification note above. 1976—Subsec. (c). Pub. L. 94–222 added subsec. (c). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the des- ignated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees. PART E—CONSUMER LEASES § 1667. Definitions For purposes of this part— (1) The term ‘‘consumer lease’’ means a con- tract in the form of a lease or bailment for the use of personal property by a natural person for a period of time exceeding four months, and for a total contractual obligation not ex- ceeding $50,000,1 primarily for personal, fam- ily, or household purposes, whether or not the lessee has the option to purchase or otherwise become the owner of the property at the expi- ration of the lease, except that such term shall not include any credit sale as defined in section 1602(g) 2 of this title. Such term does not include a lease for agricultural, business, or commercial purposes, or to a government or Page 1546 TITLE 15—COMMERCE AND TRADE § 1667a governmental agency or instrumentality, or to an organization. (2) The term ‘‘lessee’’ means a natural per- son who leases or is offered a consumer lease. (3) The term ‘‘lessor’’ means a person who is regularly engaged in leasing, offering to lease, or arranging to lease under a consumer lease. (4) The term ‘‘personal property’’ means any property which is not real property under the laws of the State where situated at the time offered or otherwise made available for lease. (5) The terms ‘‘security’’ and ‘‘security in- terest’’ mean any interest in property which secures payment or performance of an obliga- tion. (Pub. L. 90–321, title I, § 181, as added Pub. L. 94–240, § 3, Mar. 23, 1976, 90 Stat. 257; amended Pub. L. 111–203, title X, § 1100E(a)(2), July 21, 2010, 124 Stat. 2111.) Editorial Notes REFERENCES IN TEXT Section 1602(g) of this title, referred to in par. (1), was redesignated section 1602(h) of this title by Pub. L. 111–203, title X, § 1100A(1)(A), July 21, 2010, 124 Stat. 2107. AMENDMENTS 2010—Par. (1). Pub. L. 111–203 substituted ‘‘$50,000’’ for ‘‘$25,000’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the des- ignated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees. EFFECTIVE DATE Pub. L. 94–240, § 6, Mar. 23, 1976, 90 Stat. 261, provided that: ‘‘This Act [enacting this section and sections 1667a to 1667e of this title, amending sections 1601 and 1640 of this title, and enacting provisions set out as a note under section 1601 of this title] takes effect one year after the date of its enactment [Mar. 23, 1976].’’ ADJUSTMENTS FOR INFLATION On and after Dec. 31, 2011, dollar amount described in par. (1) of this section to be adjusted annually by the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers, see section 1100E(b) of Pub. L. 111–203, set out as a note under section 1603 of this title. § 1667a. Consumer lease disclosures Each lessor shall give a lessee prior to the con- summation of the lease a dated written state- ment on which the lessor and lessee are identi- fied setting out accurately and in a clear and conspicuous manner the following information with respect to that lease, as applicable: (1) A brief description or identification of the leased property; (2) The amount of any payment by the lessee required at the inception of the lease; (3) The amount paid or payable by the lessee for official fees, registration, certificate of title, or license fees or taxes; (4) The amount of other charges payable by the lessee not included in the periodic pay- ments, a description of the charges and that the lessee shall be liable for the differential, if any, between the anticipated fair market value of the leased property and its appraised actual value at the termination of the lease, if the lessee has such liability; (5) A statement of the amount or method of determining the amount of any liabilities the lease imposes upon the lessee at the end of the term and whether or not the lessee has the op- tion to purchase the leased property and at what price and time; (6) A statement identifying all express war- ranties and guarantees made by the manufac- turer or lessor with respect to the leased prop- erty, and identifying the party responsible for maintaining or servicing the leased property together with a description of the responsi- bility; (7) A brief description of insurance provided or paid for by the lessor or required of the les- see, including the types and amounts of the coverages and costs; (8) A description of any security interest held or to be retained by the lessor in connec- tion with the lease and a clear identification of the property to which the security interest relates; (9) The number, amount, and due dates or periods of payments under the lease and the total amount of such periodic payments; (10) Where the lease provides that the lessee shall be liable for the anticipated fair market value of the property on expiration of the lease, the fair market value of the property at the inception of the lease, the aggregate cost of the lease on expiration, and the differential between them; and (11) A statement of the conditions under which the lessee or lessor may terminate the lease prior to the end of the term and the amount or method of determining any penalty or other charge for delinquency, default, late payments, or early termination. The disclosures required under this section may be made in the lease contract to be signed by the lessee. The Bureau may provide by regula- tion that any portion of the information re- quired to be disclosed under this section may be given in the form of estimates where the lessor is not in a position to know exact information. (Pub. L. 90–321, title I, § 182, as added Pub. L. 94–240, § 3, Mar. 23, 1976, 90 Stat. 258; amended Pub. L. 111–203, title X, § 1100A(2), (10)(B), July 21, 2010, 124 Stat. 2107, 2109.) Editorial Notes AMENDMENTS 2010—Pub. L. 111–203, § 1100A(2), (10)(B), made similar amendments, resulting in the substitution of ‘‘The Bu- reau’’ for ‘‘The Board’’ in concluding provisions. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the des- ignated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees.