Reg Z Billing Error Rights Forms

I give up. Can someone give me the chapter verse concerning when to provide G-3(A) and G-4(A) Billing-Error Rights Model Forms?

The following comes from the Official Staff Commentary to Appendix G of Regulation Z.

"For home-equity plans subject to the requirements of § 226.5b, at the creditor’s option, a creditor either may use G–3 or G–3(A), and for creditors that use the short form, G–4 or G–4(A). For open-end (not home-secured) plans that not subject to the requirements of § 226.5b, creditors properly use G–3(A) and G–4(A)."

See the right hand column of page 7921 of the 2/22/10 issue of the Federal Register.

It looks like you have a choice of forms for HELOCs but you must use G-3(A) and G-4(A) for open end credit that is not secured by a home.

Ok and then where in the Reg does it state that the bank must provide the notice and when it must be provided. I can't find it.

From my tattered and torn, dog-earred, tear-stained copy of Reg Z:

The requirements for initial delivery are found in 226.6(a)(5) for home secured and 226.6(b)5)(iii) for non home-secured.

For subsequent delivery (either annual or alternate choice), look at 226.9(a)(1) and (2).

I hope this is the information you are looking for.

It is, Raquel, and I DID finally find it and felt like an idiot for NOT being able to locate it. I'm a day late and a dollar short with the Billing Rights Notice changes!

Here's what I gather from reading:

Account Opening Disclosure

• Home Equity - Can use G-3 or G-3(A)
• Other Open End Accts - Must use G-3(A)

OK.....so why would anyone want to provide two different disclosures? It makes sense to just use G-3(A) for every open-end account!

Subsequent Disclosure (we provide in periodic statements)

• Home Equity - Can use G-4 or G-4(A)
• Other Open End Accts - Can use G-4 or G-4(A)

OK....so if it's acceptable to use either form for any account, why would anyone opt for the long form?!!

I'm I missing something?

Account Opening - we'll use G-3(A)....period.
Periodic Statement - we'll use G-4(A).....period.

Someone please advise me if I'm wrong or if I've stupidly missed something.

I thought the commentary to the G forms stated:

For home-equity plans subject to the requirements of § 226.5b, at the creditor’s option, a creditor either may use G–3 or G–3(A), and for creditors that use the short form, G–4 or G–4(A). For open-end (not home-secured) plans that not subject to the requirements of § 226.5b, creditors properly use G–3(A) and G–4(A).

Wouldn't that seem to state that the G-4 could not be used for other than HELOCs or am I missing something?

????????

§ 226.6 Account-opening disclosures.
(a) Rules affecting home-equity plans.
(5) Statement of billing rights . A statement that outlines the consumer's rights and the creditor's responsibilities under §§226.12(c) and 226.13 and that is substantially similar to the statement found in Model Form G–3 or, at the creditor's option G–3(A), in Appendix G to this part.

(b) Rules affecting open-end (not home-secured) plans .
(5) Additional disclosures for open-end (not home-secured) plans .
(iii) Statement of billing rights . A statement that outlines the consumer's rights and the creditor's responsibilities under §§226.12(c) and 226.13 and that is substantially similar to the statement found in Model Form G–3(A) in Appendix G to this part.

§ 226.9 Subsequent disclosure requirements.
(a) Furnishing statement of billing rights .
(1) Annual statement …….
(2) Alternative summary statement. As an alternative to paragraph (a)(1) of this section, the creditor may mail or deliver, on or with each periodic statement, a statement substantially similar to Model Form G-4 or Model Form G-4(A) in appendix G to this part, as applicable. Creditors offering home-equity plans subject to the requirements of § 226.5b may use either Model Form, at their option.

If we do not offer credit cards at all, but do offer debit cards linked to DDA accounts would the bottom section of model form G-4(A)titled, "Your Rights If You Are Dissatisfied With Your Credit Card Purchases" apply and need to be included on the notice?

They would not be "Credit Card" purchases.

That's what I thought. Just wanted to make sure I wasn't missing something. Thank you!