§1610 — Title 15 Commerce and Trade | U.S. Code

Summary

Federal credit rules do not cancel or change state rules about what must be told to people in credit deals, unless a state rule conflicts with the federal rule. The Bureau will decide if a conflict exists if asked or on its own. If the Bureau finds a state disclosure conflicts, lenders in that state must stop using the conflicting wording and cannot be sued under that state rule for not using it, even if the Bureau later changes its mind. The Bureau can also decide a state-required disclosure means basically the same thing as a federal disclosure. If so, lenders may use the state disclosure instead of the federal one, but the annual percentage rate and finance charge still must be shown as required under section 1632, and some mortgage disclosures under section 1639 cannot be replaced. Aside from what section 1639 says, these federal rules do not change state laws about allowed charges, rates, or who those state laws cover. When a seller shows an APR for a consumer credit sale, that APR cannot be used in court to prove the sale was a loan or some other type of deal. Except for rules in sections 1635, 1640, and 1666e, the federal rules do not change whether contracts are legally valid. Parts of sections 1632(c) and 1637 override any state law about credit‑card applications, solicitations, or renewal notices that those federal parts cover, but states may still make laws to enforce those federal requirements.

Title 15, §1610

Commerce and Trade — Source: USLM XML via OLRC

(a)(1)Except as provided in subsection (e), this part and parts B and C, do not annul, alter, or affect the laws of any State relating to the disclosure of information in connection with credit transactions, except to the extent that those laws are inconsistent with the provisions of this subchapter, and then only to the extent of the inconsistency. Upon its own motion or upon the request of any creditor, State, or other interested party which is submitted in accordance with procedures prescribed in regulations of the Bureau, the Bureau shall determine whether any such inconsistency exists. If the Bureau determines that a State-required disclosure is inconsistent, creditors located in that State may not make disclosures using the inconsistent term or form, and shall incur no liability under the law of that State for failure to use such term or form, notwithstanding that such determination is subsequently amended, rescinded, or determined by judicial or other authority to be invalid for any reason.

(2)Upon its own motion or upon the request of any creditor, State, or other interested party which is submitted in accordance with procedures prescribed in regulations of the Bureau, the Bureau shall determine whether any disclosure required under the law of any State is substantially the same in meaning as a disclosure required under this subchapter. If the Bureau determines that a State-required disclosure is substantially the same in meaning as a disclosure required by this subchapter, then creditors located in that State may make such disclosure in compliance with such State law in lieu of the disclosure required by this subchapter, except that the annual percentage rate and finance charge shall be disclosed as required by section 1632 of this title, and such State-required disclosure may not be made in lieu of the disclosures applicable to certain mortgages under section 1639 of this title.

(b)Except as provided in section 1639 of this title, this subchapter does not otherwise annul, alter or affect in any manner the meaning, scope or applicability of the laws of any State, including, but not limited to, laws relating to the types, amounts or rates of charges, or any element or elements of charges, permissible under such laws in connection with the extension or use of credit, nor does this subchapter extend the applicability of those laws to any class of persons or transactions to which they would not otherwise apply. The provisions of section 1639 of this title do not annul, alter, or affect the applicability of the laws of any State or exempt any person subject to the provisions of section 1639 of this title from complying with the laws of any State, with respect to the requirements for mortgages referred to in section 1602(aa) 11 See References in Text note below. of this title, except to the extent that those State laws are inconsistent with any provisions of section 1639 of this title, and then only to the extent of the inconsistency.

(c)In any action or proceeding in any court involving a consumer credit sale, the disclosure of the annual percentage rate as required under this subchapter in connection with that sale may not be received as evidence that the sale was a loan or any type of transaction other than a credit sale.

(d)Except as specified in section 1635, 1640, and 1666e of this title, this subchapter and the regulations issued thereunder do not affect the validity or enforceability of any contract or obligation under State or Federal law.

(e)The provisions of subsection (c) of section 1632 of this title and subsections (c), (d), (e), and (f) of section 1637 of this title shall supersede any provision of the law of any State relating to the disclosure of information in any credit or charge card application or solicitation which is subject to the requirements of section 1637(c) of this title or any renewal notice which is subject to the requirements of section 1637(d) of this title, except that any State may employ or establish State laws for the purpose of enforcing the requirements of such sections.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 1602(aa) of this title, referred to in subsec. (b), was redesignated section 1602(bb) of this title by Pub. L. 111–203, title X, § 1100A(1)(A), July 21, 2010, 124 Stat. 2107.

Amendments

2010—Subsec. (a). Pub. L. 111–203 substituted “Bureau” for “Board” wherever appearing. 1994—Subsec. (a)(2). Pub. L. 103–325, § 152(e)(2)(B), which directed the amendment of par. (2) by inserting “, and such State-required disclosure may not be made in lieu of the disclosures applicable to certain mortgages under section 1639 of this title” before period, was executed by making the insertion before period at end of par. (2), to reflect the probable intent of Congress. Subsec. (b). Pub. L. 103–325, § 152(e)(2)(C), substituted “Except as provided in section 1639 of this title, this subchapter” for “This subchapter” and inserted at end “The provisions of section 1639 of this title do not annul, alter, or affect the applicability of the laws of any State or exempt any person subject to the provisions of section 1639 of this title from complying with the laws of any State, with respect to the requirements for mortgages referred to in section 1602(aa) of this title, except to the extent that those State laws are inconsistent with any provisions of section 1639 of this title, and then only to the extent of the inconsistency.” 1988—Subsec. (a)(1). Pub. L. 100–583, § 4(1), substituted “Except as provided in subsection (e), this part” for “This part”. Subsec. (e). Pub. L. 100–583, § 4(2), added subsec. (e). 1980—Subsec. (a). Pub. L. 96–221 designated existing provisions as par. (1), substituted provisions respecting the effect of this part and parts B and C of this subchapter, and procedures applicable for determination, for provisions respecting the effect of this subchapter, and added par. (2). 1974—Subsec. (d). Pub. L. 93–495 inserted reference to section 1666e of this title.

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.

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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

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, and allowing any creditor to comply with any

Amendments

, in accordance with the

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, forms, and clauses prescribed by the Board prior to such

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, see section 625 of Pub. L. 96–221, set out as a note under section 1602 of this title.

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of 1974 AmendmentFor

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of amendment by Pub. L. 93–495, see section 308 of Pub. L. 93–495, set out as an

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note under section 1666 of this title.

§1610 Effect on Other Laws

Summary

Title 15, §1610

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