SECTION 160:45-3-1. General disclosure requirements

(a)   Form of disclosures.

(1)   The creditor shall make the disclosures required by this subchapter clearly and conspicuously in writing, 7/ in a form that the consumer may keep. 8/ The disclosures required by this subchapter may be provided to the consumer in electronic form, subject to compliance with the consumer consent and other applicable provisions of the Electronic Signatures in Global and National Commerce Act (E-Sign Act) (15 U.S.C.§ 7001 et seq.). The disclosures required by 160:45-3-2, 160:45-3-3, and 160:45-3-14 may be provided to the consumer in electronic form without regard to the consumer consent or other provisions of the E-Sign Act in the circumstances set forth in those sections.

(2)   The terms "finance charge" and "annual percentage rate," when required to be disclosed with a corresponding amount or percentage rate, shall be more conspicuous than any other required disclosure. 9/

(3)   Certain disclosures required under 160:45-3-2 for credit and charge card applications and solicitations must be provided in a tabular format or in a prominent location in accordance with the requirements of 160:45-3-2.

(4)   For rules governing the form of disclosures for home-equity plans, see 160:45-3-3(1).

(b)   Time of disclosures.

(1)   Initial disclosures. The creditor shall furnish the initial disclosure statement required by 160:45-3-4 before the first transaction is made under the plan.

(2)   Periodic statements.

(A)   The creditor shall mail or deliver a periodic statement as required by 160:45-3-5 for each billing cycle at the end of which an account has a debit or credit balance of more than $1 or on which a finance charge has been imposed. A periodic statement need not be sent for an account if the creditor deems it uncollectible, or if delinquency collection proceedings have been instituted, or if furnishing the statement would violate federal law.

(B)   The creditor shall mail or deliver the periodic statement at least 14 days prior to any date or the end of any time period required to be disclosed under 160:45-3-5(10) in order for the consumer to avoid an additional finance or other charge. 10/ A creditor that fails to meet this requirement shall not collect any finance or other charge imposed as a result of such failure.

(3)   Credit and charge card application and solicitation disclosures. The card issuer shall furnish the disclosures for credit and charge card applications and solicitations in accordance with the timing requirements of 160:45-3-2.

(4)   Home-equity plans. Disclosures for home equity plans shall be made in accordance with the timing requirements of 160:45-3-3(2).

(c)   Basis of disclosures and use of estimates. Disclosures shall reflect the terms of the legal obligation between the parties. If any information necessary for accurate disclosure is unknown to the creditor, it shall make the disclosure based on the best information reasonably available and shall state clearly that the disclosure is an estimate.

(d)   Multiple creditors; multiple consumers. If the credit plan involves more than one creditor, only one set of disclosures shall be given, and the creditors shall agree among themselves which creditor must comply with the requirements that this chapter imposes on any or all of them. If there is more than one consumer, the disclosures may be made to any consumer who is primarily liable on the account. If the right of rescission under 160:45-3-13 is applicable, however, the disclosures required by 160:45-3-4 and 160:45-3-13(b) shall be made to each consumer having the right to rescind.

(e)   Effect of subsequent events. If a disclosure becomes inaccurate because of an event that occurs after the creditor mails or delivers the disclosures, the resulting inaccuracy is not a violation of this chapter, although new disclosures may be required under 160:45-3-7(c).

7/   The disclosure required by 160:45-3-7(d) when a finance charge is imposed at the time of a transaction need not be written.

8/  The disclosures required under 160:45-3-2 for credit and charge card applications and solicitations, the home-equity disclosures required under 160:45-3-3(4), the alternative summary billing-rights statement provided in accordance with federal regulations, 12 CFR §226.9(a)(2), the credit and charge card renewal disclosures required under 160:45-3-7(e), and the disclosures made in accordance with federal regulations, 12 CFR §226.10(b), about payment requirements need not be in a form that the consumer can keep.

9/  The terms need not be more conspicuous when used under 160:45-3-2 generally for credit and charge card applications and solicitations, under 160:45-3-5(4) on periodic statements, under 160:45-3-7(e) in credit and charge card renewal disclosures, and under 160:45-3-14 in advertisements. (But see special rule for annual percentage rate for purchases, 160:45-3-2(b)(1).)

10/  This timing requirement does not apply if the creditor is unable to meet the requirement because of an act of God, war, civil disorder, natural disaster, or strike.

[Source: 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 25 Ok Reg 2164, eff 7-11-08; Amended at 27 Ok Reg 213, eff 10-2-09 through 7-14-10 (emergency)]

Note

EDITOR’S NOTE: Due to technical error, when the 7-12-04 amendments to this Section (160:45-3-1) were published in the 2004 OAC Supplement, the footnotes in the Section were not replaced, resulting in the publication of two sets of footnotes in both the 2004 and 2005 OAC Supplements. Because the two footnotes for 7/, 9/, and 10/ were identical, the second footnote at each number was editorially removed when the rule was published in the 2006 Edition of the OAC. However, because the two footnotes for 8/ were not identical, both versions of footnote 8/ were retained until the section was amended again on 7-11-08.

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 160:45-3-1 reverted back to the permanent text that became effective 7-11-08.