Page:United States Statutes at Large Volume 102 Part 5.djvu/727

 PUBLIC LAW 100-709—NOV. 23, 1988

102 STAT. 4733

variable feature of the plan) changes before the account is opened, and if, as a result of such change, the consumer elects not to enter into the plan agreement, the creditor shall refund all fees paid by the consumer in connection with such application. "(e) ADDITIONAL REQUIREMENTS RELATING TO REFUNDS AND IMPOSITION OP NONREFUNDABLE FEES.—

"(1) IN GENERAL.—No nonrefundable fee may be imposed by a creditor or any other person in connection with any application by a consumer to establish an account under any open end consumer credit plan which provides for extensions of credit which are secured by a consumer's principal dwelling before the end of the 3-day period beginning on the date such consumer receives the disclosure required under section 127A(a) and the pamphlet required under section 127A(e) with respect to such application. (2) CONSTRUCTIVE RECEIPT.—For purposes of determining when a nonrefundable fee may be imposed in accordance with this subsection if the disclosures and pamphlet referred to in parc^aph (1) are mailed to the consumer, the date of the receipt of the disclosures by such consumer shall be deemed co be 3 Dusiness days after the date of mailing by the creditor.".

SEC. 4. CONSUMER EDUCATION.

15 USC 1637a

The Board of Governors of the Federal Reserve System shall develop and prepare a pamphlet for distribution to consumers which contains— (1) a general description of open end consumer credit plans secured by the consumer's principal dwelling and the terms and conditions under which such loans are generally extended; and (2) a discussion of the potential advantages and disadvantages of such plans, including how to compare among home equity plans and between home equity and closed end credit plans. SEC. 5. CLERICAL AMENDMENTS. (a) CHAPTER 2.—The table of sections

for chapter 2 of the Truth in

Lending Act is amended— (1) by inserting after the item relating to section 127 the following new item: "127A. Disclosure requirements for open end consumer credit plans secured by the consumer's principal dwelling.";

and (2) by inserting after the item relating to section 136 the following new item: "137. Home equity plans.". 01)) CHAPTER 3.—The table

of sections for chapter 3 of the Truth in Lending Act is amended by inserting after the item relating to section 146 the following new item: "147. Advertising of open end consumer credit plans secured by the consumer's principal dwelling.". SEC. 6. ABILITY TO COMPARE PLANS. (a) STUDY REQUIRED.—Before the

end of the 6-month period beginning on the date of the enactment of this Act, the Board of Governors of the Federal Reserve System shall conduct a study to determine whether the use of the same term, such as annual percentage rate, to describe the cost to the consumer for extensions

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