Open-end credit - returned payment fee disclosure

Posted By: CalifDreamin

Open-end credit - returned payment fee disclosure - 02/02/21 06:51 PM

In looking at Reg Z, the “Return Payment Fee” is a periodic fee (not annualized), so it shouldn’t be bold in the disclosure according to how the reg reads. However, it’s bold in the model form G-17, and it’s bold in every other bank’s LOC/credit card disclosure I’ve seen. I don't believe we have the ability in LaserPro to make this fee not bold. I’m thinking I'm just missing something obvious in the regulation that allows it to be bold. One difference is that in the model form and in the other banks' disclosures I've seen, it's disclosed as "Up to ____" with the dollar amount in bold, whereas ours has the actual fee - however, the regulation doesn't make that distinction (that I can find) on how that is what requires it to be bold.

§1026.6(b)(1)(i) Highlighting. In the table, any annual percentage rate required to be disclosed pursuant to paragraph (b)(2)(i) of this section; any introductory rate permitted to be disclosed pursuant to paragraph (b)(2)(i)(B) or required to be disclosed under paragraph (b)(2)(i)(F) of this section, any rate that will apply after a premium initial rate expires permitted to be disclosed pursuant to paragraph (b)(2)(i)(C) or required to be disclosed pursuant to paragraph (b)(2)(i)(F), and any fee or percentage amounts or maximum limits on fee amounts disclosed pursuant to paragraphs (b)(2)(ii), (b)(2)(iv), (b)(2)(vii) through (b)(2)(xii) of this section must be disclosed in bold text. However, bold text shall not be used for: The amount of any periodic fee disclosed pursuant to paragraph (b)(2) of this section that is not an annualized amount; and other annual percentage rates or fee amounts disclosed in the table.

Not much more in the commentary other than -3

3. Terminology. Section 1026.6(b)(1) generally requires that the headings, content, and format of the tabular disclosures be substantially similar, but need not be identical, to the tables in Appendix G to part 1026; but see §1026.5(a)(2) for terminology requirements applicable to §1026.6(b).

There’s no commentary in 1026.6(b)(2)(xi) which tells us we have to disclose the Returned-payment fee in bold or not in bold, the section simply tells us we have to disclose it…

(xi) Returned-payment fee. Any fee imposed by the creditor for a returned payment.
Posted By: rlcarey

Re: Open-end credit - returned payment fee disclosure - 02/02/21 06:58 PM

You have confused the heck out of me. If the return late fee is 1026.6(b)(2)(xi) - how does that not fall into "(b)(2)(vii) through (b)(2)(xii) of this section must be disclosed in bold text."?
Posted By: CalifDreamin

Re: Open-end credit - returned payment fee disclosure - 02/02/21 08:37 PM

Well, perhaps I just got myself confused. I don't know. I've always thought it needed to be bold until today. Returned payment fee is 1026.6(b)(2)(xi), and 1026.2(b)(1)(i) clearly states that fee amounts disclosed per paragraph (b)(2)(vii) through (b)(2)(xii) must be disclosed in bold (AND it's bold in the model form). BUT it's a periodic fee, right? And clearly there in 1026.6(b)(1)(i), it ends by saying
Quote
However, bold text shall not be used for: The amount of any periodic fee disclosed pursuant to paragraph (b)(2) of this section that is not an annualized amount; and other annual percentage rates or fee amounts disclosed in the table.
So...doesn't that mean this fee should NOT be bold?
Posted By: rlcarey

Re: Open-end credit - returned payment fee disclosure - 02/02/21 10:41 PM

I do not believe that is a periodic fee. Look at G-17(C) and the disclosure of the $1 per month participation fee and also look at the minimum. interest charge.
Posted By: CalifDreamin

Re: Open-end credit - returned payment fee disclosure - 02/03/21 02:18 AM

Yes! That makes sense now! Thank you, Randy!