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FED ER AL RESERVE BANK O F NEW YORK rC ircular No. 8 0 7 6 1 L March 25, 1977 J Federal Enforcement Agencies Under Consumer Credit Regulations T o A ll M e m b e r Banks, a n d O th ers C o n cern ed , in t h e S e c o n d F e d e r a l R e s e r v e D i s t r i c t : Following is the text of a statement issued March 22 by the Board of Governors of the Federal Reserve System: The Board of Governors of the Federal Reserve System noted today that two consumer credit protection laws go into effect Wednesday, March 23, together with regulations written by the Board to carry them out. The new laws are the amended and expanded Equal Credit Opportunity Act and the Consumer Leasing Act. Congress broadened the Equal Credit Opportunity Act in 1976, effective March 23, 1977, to include prohibitions against discrimination in any aspect of a credit transaction on the basis of race, color, religion, national origin, age, receipt of income from public assistance programs and good faith exercise of rights under the Consumer Protection Act of 1968 (which includes the Truth in Lending, Fair Credit Billing, Equal Credit Opportunity, Fair Credit Reporting and Consumer Leasing Acts). The Equal Credit Opportunity Act, in its original form, forbade discrimination in credit transactions on the basis of sex and marital status. In its revised form the Act retains these prohibitions. To carry out the Act’s original intent the Board wrote a new Regulation B, effective October 28, 1975. Last December 30, the Board issued a revised and broadened Regulation B, to implement the revised and broadened Act, effective tomorrow. The Board’s rules on equal credit opportunity are enforced by 12 Federal agencies, listed at the end of this release, together with the types of agencies they supervise. To assist consumers and creditors the Board has published five model application forms that, when prop erly used, comply with the provisions of the revised Act and Regulation B. The forms are accompanied by instructions for their use. The Consumer Leasing Act is a new title under the Truth in Lending Act. It requires disclosure of terms under which personal property, such as automobiles and furniture, is leased. The implementing regulation is, consequently, a new section of the Truth in Lending Regulation Z. The leasing section of Regulation Z was adopted by the Board October 13, 1976, and becomes effective tomorrow. Enforcement agencies are named below.1 On February 18, 1977, the Board issued sample disclosure forms, and instructions for their use, to strengthen compliance with the Act and Regulation Z (leasing). The forms cover open- and closed-end vehicle leasing and furniture leasing. They are disclosure forms, not leasing contracts and are meant — as are the Act and regulation — to provide consumers with full information as to the terms of their leases of personal property. The Board has established a Compliance Section in its Division of Consumer Affairs to assist in the education of creditors and bank examiners with respect to consumer credit laws and regulations, to receive and investigate consumer complaints; and to enforce compliance. A separate unit of the Division is concerned with consumer education, and has begun issuing pamphlets explaining the new consumer credit regulations. l Enforcement agencies are: Comptroller of the Currency, Board of Directors of the Federal Deposit Insurance Corporation, Federal Home Loan Bank Board (acting directly or through the Federal Savings and Loan Corporation), Administrator of the National Credit Union Administration, Civil Aeronautics Board, Secretary of Agriculture, Farm Credit Administration, Board of Governors of the Federal Reserve System and the Federal Trade Commission. (over) The Board has published its precedures for handling consumer complaints alleging unfair or deceptive practices by banks in the form of a new Regulation AA. Announcement of adoption of the new regulation on September 28, 1976 emphasized that any consumer having a complaint alleging an unfair or deceptive act by a bank, or a violation of law or regulation, can have the complaint investigated by submitting it, preferably in writing, to the Director of the Division of Consumer Affairs, Board of Governors, Federal Reserve System, Washington, D.C. 20551. Complaints may also be registered at the Federal Reserve Bank for the District in which the bank is located. Printed below is the list of Federal enforcement agencies under the Board of Governors’ Regulation B, “Equal Credit Opportunity.” Questions on this matter may be directed to our Bank Regulations Department. P aul A. V olcker, President. FEDERAL ENFORCEMENT AGENCIES The following list indicates which Federal agency enforces Regulation B for particular classes of creditors. Any questions concerning a particular creditor should be directed to its enforcement agency. National Banks Comptroller of the Currency Consumer Affairs Division Washington, D.C. 20219 State Member Banks Federal Reserve Bank serving the area in which the State member bank is located. Nonmember Insured Banks Federal Deposit Insurance Corporation Regional Director for the Region in which the nonmem ber insured bank is located. Creditors Subject to Interstate Commerce Commission Office of Proceedings Interstate Commerce Commission Washington, D.C. 20523 Creditors Subject to Packers and Stockyards Act Nearest Packers and Stockyards Administration area supervisor. Small Business Investment Companies U.S. Small Business Administration 1441 L Street, NW Washington, D.C. 20416 Brokers and Dealers Savings Institutions Insured by the FSLIC and Mem bers of the FHLB System (except for savings banks insured by FDIC ) The FHLBB’s Supervisory Agent in the Federal Home Loan Bank District in which the institu tion is located. Federal Credit Unions Regional Office of the National Credit Union Administration serving the area in which the Federal Credit Union is located. Creditors Subject to Civil Aeronautics Board Director, Bureau of Enforcement Civil Aeronautics Board 1825 Connecticut Avenue, NW Washington, D.C. 20428 Securities and Exchange Commission Washington, D.C. 20549 Federal Land Banks, Federal Land Bank Associations, Federal Intermediate Credit Banks and Production Credit Associations Farm Credit Administration 490 L’Enfant Plaza, SW Washington, D.C. 20578 Retail, Department Stores, Consumer Finance Com panies, All Other Creditors, and All Nonbank Credit Card Issuers (Lenders operating on a local or re gional basis should use the address of the F.T.C. Regional Office in which they operate) Federal Trade Commission Equal Credit Opportunity Washington, D.C. 20580
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