Title 15 — Commerce and TradeRelease 119-73
§1665a Use of annual percentage rate in oral disclosures; exceptions
Title 15 › Chapter CHAPTER 41— - CONSUMER CREDIT PROTECTION › Subchapter SUBCHAPTER I— - CONSUMER CREDIT COST DISCLOSURE › Part Part C— - Credit Advertising and Limits on Credit Card Fees › § 1665a
Summary
When asked orally about credit costs, creditors must state the annual percentage rate (APR); they may also give a periodic rate for open‑end plans or a simple annual rate for simple‑interest loans. The Bureau may change rules or allow exceptions when APR is unknowable.
Full Legal Text
Title 15, §1665a
Commerce and Trade — Source: USLM XML via OLRC
In responding orally to any inquiry about the cost of credit, a creditor, regardless of the method used to compute finance charges, shall state rates only in terms of the annual percentage rate, except that in the case of an open end credit plan, the periodic rate also may be stated and, in the case of an other than open end credit plan where a major component of the finance charge consists of interest computed at a simple annual rate, the simple annual rate also may be stated. The Bureau may, by regulation, modify the requirements of this section or provide an exception from this section for a transaction or class of transactions for which the creditor cannot determine in advance the applicable annual percentage rate.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
2010—Pub. L. 111–203 substituted “Bureau” for “Board”. 1980—Pub. L. 96–221 substituted provisions relating to use of annual percentage rate in oral disclosures by creditors, for provisions setting forth requirements for advertisements concerning consumer credit repayable in more than four installments.
Statutory Notes and Related Subsidiaries
Effective Date
of 2010 AmendmentAmendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees.
Effective Date
of 1980 AmendmentAmendment by Pub. L. 96–221 effective on expiration of two years and six months after Mar. 31, 1980, with all
Regulations
, forms, and clauses required to be prescribed to be promulgated at least one year prior to such
Effective Date
, and allowing any creditor to comply with any
Amendments
, in accordance with the
Regulations
, forms, and clauses prescribed by the Board prior to such
Effective Date
, see section 625 of Pub. L. 96–221, set out as a note under section 1602 of this title.
Effective Date
Pub. L. 93–495, title IV, § 416, Oct. 28, 1974, 88 Stat. 1521, provided that: “This title [enacting this section and section 1614 and 1645 of this title, amending section 1603, 1607, 1635, 1637, 1640, and 1644 of this title, and enacting provision set out as a note under section 1640 of this title] takes effect upon the date of its enactment [Oct. 28, 1974], except that section 409 [amending section 1631 of this title] and 411 [amending section 1637 of this title] take effect upon the expiration of one year after the date of its enactment [Oct. 28, 1974].”
Reference
Citations & Metadata
Citation
15 U.S.C. § 1665a
Title 15 — Commerce and Trade
Last Updated
Apr 6, 2026
Release point: 119-73