Call this the Pirates of Penzance card. Chase was recently sued over its calculation of finance charges in a leap year. The suit alleges that Chase computed the daily periodic rate applied to the plaintiff’s balance based on a 365 day year when it was a 366 day leap year. The difference in rates resulted in an additional finance charge of 4 cents.
Tag: Reg Z
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Proposed Fed/OTS/NCUA Credit Card Regulations
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[Updated 5.4.08. Updated language, largely comparing Regs to pending legislation, is in brackets.]
This afternoon, the Federal Reserve, Office of Thrift Supervision, and National Credit Union Administration unveiled a set of new, proposed unfair and deceptive practices (UDAP) rules under section 5(a) of the Federal Trade Commission Act. A copy is available here. Other materials are here. It’s not light reading–269 pages.
Some of the proposed rules are quite favorable for consumer interests. Others do not go far enough, however, and perhaps most importantly, there are several major issues that the proposed rules simply do not address. From an initial perusal, the gist of the rules (and what’s missing) seems to be as follows (below the break):