Mandatory Disclosures_7.23.2021

§232.6 Mandatory loan disclosures
(a) Required information. With respect to any extension of consumer credit
(including any consumer credit originated or extended through the internet) to a covered
borrower, a creditor shall provide to the member or dependent the following information
clearly and conspicuously before consummation of the consumer credit transaction:
(1) The MAPR applicable to the extension of consumer credit, and the total
dollar amount of all charges included in the MAPR.
(2) Any disclosures required by Regulation Z (Truth in Lending), 12 CFR Part
226.
(3) A clear description of the payment obligation of the covered borrower, as
applicable. A payment schedule provided pursuant to paragraph (a)(2) of this section
satisfies this requirement.
(4) A statement that “Federal law provides important protections to regular or
reserve members of the Army, Navy, Marine Corps, Air Force, or Coast Guard, serving
on active duty under a call or order that does not specify a period of 30 days or fewer, and
their dependents. Members of the Armed Forces and their dependents may be able to
obtain financial assistance from Army Emergency Relief, Navy and Marine Corps Relief
Society, the Air Force Aid Society, or Coast Guard Mutual Aid. Members of the Armed
Forces and their dependents may request free legal advice regarding an application for
credit from a service legal assistance office or financial counseling from a consumer
credit counselor.”

(b) Method of disclosure.
(1) Written disclosures. The creditor shall provide the disclosures required by
paragraph (a) in writing in a form the covered borrower can keep.
(2) Oral disclosures. The creditor also shall provide the disclosures required by
paragraphs (a)(1), (a)(3) and (a)(4) of this section orally before consummation. In mail
and internet transactions, the creditor satisfies this requirement if it provides a toll-free
telephone number on or with the written disclosures that consumers may use to obtain
oral disclosures and the creditor provides oral disclosures when the covered borrower
contacts the creditor for this purpose.
(c) When disclosures are required for refinancing or renewal of covered loan. The
refinancing or renewal of a covered loan requires new disclosures under §232.6 only
when the transaction would be considered a new transaction that requires disclosures
under the Truth in Lending Act, as implemented by the Federal Reserve Board's
Regulation Z, 12 CFR Part 226.