Summary

GAO reviewed the Board of Governors of the Federal Reserve System's new rule on Truth in Lending. GAO found that (1) the rule amends Regulation Z in order to implement provisions of the Credit Card Accountability Responsibility and Disclosure Act of 2009; requires that creditors provide consumers with 45 days advance notice of rate increases and other significant changes to the terms of their credit card account agreements; and prohibits a creditor from treating a payment as late or imposing additional finance charges unless the creditor mailed or delivered the periodic statement at least 21 days before the payment due date and the expiration of any period within which any credit extended may be repaid without incurring a finance charge, i.e., a grace period and (2) the Board of Governors of the Federal Reserve System complied with applicable requirements in promulgating the rule.