Industry News

Oops, Fed tries again at better consumer disclosure

Federal Reserve withdraws new rules

The Federal Reserve Board on Tuesday withdrew proposed rule revisions that would've more clearly defined specific disclosure requirements financial institutions must make to consumers. The proposed revisions, published in December 2003, were intended to help ensure that consumers receive noticeable and understandable information that is required by law in connection with obtaining consumer financial products and services. They sought to define more specifically the standard for providing "clear and conspicuous" disclosures, and to provide a more uniform standard among the Board's regulations. The Fed withdrew proposed revisions to Regulation B (Equal Credit Opportunity), Regulation E (Electronic Fund Transfers), Regulation M (Consumer Leasing), Regulation Z (Truth in Lending) and Regulation DD (Truth in Savings). In response to concerns raised by commenters, the Board determined more uniform disclosure standards should be achieved through proposals that focus on improving the ef...