Regulation Z - New Subpart G Rules


Presented by: Jack Holzknecht and Mary Beth Guard

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On February 22, 2010 the Federal Reserve Board's Special Rules for Credit Card Accounts and Open-end Credit for College Students, contained in new Subpart G, became effective. The new rule establishes a number of new substantive and disclosure requirements to establish fair and transparent practices pertaining to open-end consumer credit plans, including credit card accounts. Among other changes, the rule:
  • Limits the application of increased rates to existing credit card balances;
  • Requires credit card issuers to consider a consumer's ability to make the required payments;
  • Establishes special requirements for extensions of credit to consumers who are under the age of 21; and
  • Limits the assessment of fees for exceeding the credit limit on a credit card account.
These rules apply primarily to credit card accounts for a consumer under an open-end (not home-secured) consumer credit plan. This includes any open-end credit account accessed by a credit card, except:
  • A credit card that accesses a home-equity plan; or
  • An overdraft line of credit accessed by a debit card.
The new rules have a major impact on those who offer card accessed credit. Procedures to assure compliance with the rules must be in place now.

This two-hour program explains the new open-end credit rules including the:
  • Prohibition against opening or increasing an account unless the consumer's ability to make the required minimum payment has been verified;
  • Limitation on fees during the first year after account opening;
  • Requirement to apply any excess payment to the balance bearing the highest APR;
  • Prohibition on the use of the two-cycle method of calculation of finance charges;
  • Prohibition on increasing the APRs, fees and charges under certain circumstances;
  • Requirements for over-the-limit transactions;
  • Reporting and marketing rules for college student open-end credit; and
  • Requirement to report credit card agreements to the FRB and to post agreements on the financial institution's website.
The program is designed for compliance officers, auditors, credit department managers, and lending and operations personnel impacted by the changes.

About the Speakers: Jack Holzknecht is a principal with Pegasus Educational Services, LLC, a training firm headquartered in Louisville, Kentucky. He is an experienced consultant who has provided training to thousands of bankers and examiners for 22 years. He has the ability to identify the key compliance issues from each regulation. Jack's career began in 1976 as a federal bank examiner. He later headed the form and software and education divisions of a regional consulting company. In that capacity he developed loan and deposit form systems and software. He also developed and presented training programs that were delivered to bankers in 43 states. Jack has been an instructor at compliance schools presented by the Georgia, Iowa, Kentucky, Pennsylvania, Nebraska, New York and Texas bankers associations. He developed and delivered compliance training for the FDIC and OTS for ten years. He is a Certified Regulatory Compliance Manager and a member of the National Speakers Association. He is also a "BOL Guru" and frequently answers compliance questions sent to "Bankers' Threads."

Mary Beth Guard currently serves as Executive Editor of and CEO of Glia Group, Inc. Mary Beth has had a long and distinguished career, graduating from law school in 1980. She has focused her work exclusively on the banking industry since 1984. Previously, Mary Beth served as EVP/General Counsel and COO for the Oklahoma Bankers Association, EVP of Specialized Services for Thomson Financial Publishing, and General Counsel for the Oklahoma State Banking Department.

Mary Beth is one of the founders of and She maintains an active speaking schedule and has written many articles relating to compliance and other banking topics. She is a BOL Guru.

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CD-ROM includes:
  • Complete presentation (including slides and audio)
  • Written Materials
  • Follow-up Q & A
You have the right under this license agreement for this CD-ROM to use this presentation on a single-workstation. Use on a network is in violation of the copyright agreements. CD may be used by multiple users at a given institution but may not be placed on a network or in any other multi-user environment.

This program was recorded in its entirety in April 2010. The CD-ROM includes program slides, materials (if available) and follow-up Q & A document.

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  • Model: cd_subpartg0410
  • Manufactured by: Glia Group, Inc.

This product was added to our catalog on Tuesday 02 March, 2010.

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