SECTION 160:45-1-1. Authority, purpose, coverage, organization, enforcement and liability

(a)   Authority. This chapter, known as Regulation Z, conforms to the regulations issued by the Board to implement the federal Truth In Lending Act, which is contained in title I of the Consumer Credit Protection Act, as amended (15 USC 1601 et seq.). This chapter does not contain fair credit billing provisions, because Oklahoma does not have an exemption from Chapter 4, Credit Billing, of the federal Truth In Lending Act, and Oklahoma does not have a Fair Credit Billing Act; thus, creditors in Oklahoma should recognize that regulation of fair credit billing requirements lies with federal authorities; as a convenience, the pertinent sections of the Code of Federal Regulations, 12 CFR 226, have been referenced.

(b)   Purpose. The purpose of this chapter is to promote the informed use of consumer credit by requiring disclosures about its terms and cost. The chapter also gives consumers the right to cancel certain credit transactions that involve a lien on a consumer's principal dwelling and regulates certain credit card practices. The chapter does not govern charges for consumer credit. The chapter requires a maximum interest rate to be stated in variable-rate contracts secured by the consumer's dwelling. It also imposes limitations on home-equity plans that are subject to the requirements of 160:45-3-3 and mortgages that are subject to the requirements of 160:45-9-2. The chapter prohibits certain acts or practices in connection with credit secured by a consumer's principal dwelling.

(c)   Coverage.

(1)   In general, this chapter applies to each individual or business that offers or extends credit when four conditions are met:

(A)   the credit is offered or extended to consumers;

(B)   the offering or extension of credit is done regularly; 1/

(C)   the credit is subject to a finance charge or is payable by a written agreement in more than four installments; and

(D)   the credit is primarily for personal, family or household purposes.

(2)   If a credit card is involved, however, certain provisions apply even if the credit is not subject to a finance charge, or is not payable by a written agreement in more than four installments, or if the credit card is to be used for business purposes.

(3)   In addition, certain requirements of 160:45-3-3 apply to persons who are not creditors but who provide applications for home-equity plans to consumers.

(d)   Organization. The chapter is divided into subchapters and appendices as follows:

(1)   Subchapter 1 contains general information. It sets forth:

(A)   the authority, purpose, coverage, and organization of the chapter;

(B)   the definitions of basic terms;

(C)   the transactions that are exempt from coverage; and

(D)   the method of determining the finance charge.

(2)   Subchapter 3 contains the rules for open-end credit. It requires that initial disclosures and periodic statements be provided, as well as additional disclosures for credit and charge card applications and solicitations and for home-equity plans subject to the requirements of 160:45-3-2 and 160:45-3-3, respectively.

(3)   Subchapter 5 relates to closed-end credit. It contains rules on disclosures, treatment of credit balances, annual percentage rate calculations, rescission requirements, and advertising.

(4)   Subchapter 7 contains rules on oral disclosures, language of disclosures, record retention, and rate limitations.

(5)   Subchapter 9 contains special rules for mortgage transactions. 160:45-9-2 requires certain disclosures and provides limitations for loans that have rates and fees above specified amounts. 160:45-9-3 requires disclosures, including the total annual loan cost rate, for reverse mortgage transactions. 160:45-9-4 prohibits specific acts and practices in connection with mortgage transactions that are subject to 160:45-9-2. 160:45-9-5 prohibits specific acts and practices in connection with higher-priced mortgage loans, as defined in 160:45-9-5(a). 160:45-9-6 prohibits specific acts and practices in connection with credit secured by a consumer's principal dwelling.

(6)   Subchapter 11 relates to electronic communication.

(7)   Several appendices contain information such as special rules for certain kinds of credit plans, and the rules for computing annual percentage rates in closed-end credit transactions and total-annual-loan-cost rates for reverse mortgage transactions.

(e)   Enforcement and Liability. Article 6 of the Code contains the administrative enforcement provisions. Sections 5-202, 5-203, 5-301 and 5-302 of the Code contain provisions relating to liability for failure to comply with the requirements of the Code and this chapter.

1/  The meaning of "regularly" is explained in the definition of "creditor" in 160:45-1-2(a).

[Source: Amended at (not published Ok Reg), eff 9-3-96 through 7-14-97 (emergency); Amended at 17 Ok Reg 1587, eff 5-25-00; Amended at 18 Ok Reg 2361, eff 6-25-01; Amended at 21 Ok Reg 2678, eff 7-12-04; Amended at 26 Ok Reg 2474, eff 7-11-09; Amended at 27 Ok Reg 492, eff 2-14-10 through 7-14-10 (emergency)]

Note

EDITOR’S NOTE: This emergency action was not submitted by the agency in publishable format following approval of the emergency action by the Governor on 9-3-96 and, therefore, has never been published in The Oklahoma Register.

EDITOR’S NOTE: This emergency action expired without being superseded by a permanent action. Upon expiration of an emergency amendatory action, the last effective permanent text is reinstated. Therefore, on 7-15-97 (after the 7-14-97 expiration of this emergency action), the text of 160:45-1-1 reverted back to the permanent text that was effective prior to enactment of the emergency action on 9-3-96, as was last published in the 1996 Edition of the OAC, and remained as such until amended by permanent rulemaking on 5-25-00.

EDITOR’S NOTE: Due to technical error, when the 7-12-04 amendments to this Section (160:45-1-1) were published in the 2004 OAC Supplement, footnote 1/ in the Section was not replaced, resulting in the publication of two footnotes with the same number in both the 2004 and 2005 OAC Supplements. Because the two footnotes were identical, the second footnote 1/ was editorially removed when the rule was published again in the 2006 Edition of the OAC.

EDITOR’S NOTE: This emergency action expired without being superseded by a permanent action. Upon expiration of an emergency amendatory action, the last effective permanent text is reinstated. Therefore, on 7-15-10 (after the 7-14-10 expiration of this emergency action), the text of 160:45-1-1 reverted back to the permanent text that became effective 7-11-09, as was last published in the 2009 OAC Supplement.