Truth in Lending

Résumé

The Board is amending Regulation Z (which implements the Truth in Lending Act) to provide relief in areas in the South recently affected by major flooding. The amendments provide a temporary exception from provisions of the regulation that prohibit a creditor from using a preprinted form by a creditor to obtain a consumer's waiver of the right to rescind certain home-secured loans when loan proceeds are needed immediately to meet a consumer's bona fide personal financial emergency. In addition, a consumer's need to obtain funds immediately shall be regarded as a bona fide personal financial emergency for purposes of Regulation Z for transactions secured by a consumer's principal dwelling located in areas of the South recently declared to be major disaster areas because of extensive flooding. Generally, Regulation Z requires a mandatory three day waiting period on rescindable transactions before funds can be disbursed. The special exceptions expire one year from the date the area was declared a major disaster.