By the Division of Banks

Open-End Line Of Credit Periodic Billing Statement

Pursuant to the Commonwealth's Truth-In-Lending statute, Mass. Gen. Laws chapter 140D and its implementing regulation 209 CMR 32.00 et. seq., certain disclosures on an open-end line of credit periodic billing statement must be more conspicuous than others. 209 CMR 32.05(1)(b) states that "[t]he 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." 209 CMR 32.07 notes the disclosures which must be included on the periodic statement. 209 CMR 32.07(6) requires that any finance charge debited or added to the account during the billing cycle must be disclosed using the term "finance charge." 209 CMR 32.07(7) provides that when a finance charge is imposed during the billing cycle, the annual percentage rate must be disclosed using the term "annual percentage rate." The Division holds that, since 209 CMR 32.07(6) and (7) require the disclosures of finance charges and annual percentage rates, such terms must be disclosed more conspicuously than other disclosures, in accordance with 209 CMR 32.05(1)(b).