CFPB Provides Clarification to Credit Card Account Opening Disclosures

With the transition of Regulation Z from the Federal Reserve Board (FRB) to the Consumer Financial Protection Bureau (CFPB), credit unions have until Jan. 1, 2013, to update the website reference on their credit card applications and solicitations to reflect the change.

While the shift from the FRB’s website to the CFPB’s website on credit card account opening disclosures seems to be a minor item, the website is one of the required disclosure items per 12 CFR 1026.60(b)(15).

This leads to the question of whether or not changing of the website reference falls under the category of “significant change in account terms” per 12 CFR 1026.9. A significant change in account terms would require credit unions to provide a 45-day advance written notice of the change.

The CFPB has verbally advised the Credit Union National Association (CUNA) that the change in website references is not considered a “significant change in account terms,” because it does not affect the credit card account terms. This means the CFPB does not feel that credit unions would need to issue 45-day advance written notices of the changes.

However, CUNA points out there is always a risk of an overzealous attorney filing a lawsuit claiming a credit union did not provide a required Regulation Z consumer protection notice. Any credit union wishing to minimize such a risk may want to consider providing a change-in-terms notice to its members.


Questions? Contact the Compliance Hotline: 1.800.546.4465,

Posted in Around the NW, Compliance News.