Regulation Z provides guidance on what items should be included in a periodic credit statement. This page addresses statements for open-end plans under section 1026.7(b). For home-equity plans, see section 1026.7(a).
Best practices in statement design emphasize clarity, user-friendliness, and promoting responsible credit behavior. Key payment information must be grouped on the front page.
Important: Always refer to the official documentation for current and detailed requirements. See Appendix G-18 for examples.
Rules affecting open-end plans
|
1026.7(b) |
Item | Definition |
| (1) | Previous balance | Account balance outstanding at the beginning of the billing cycle. |
| (2) | Transaction identification |
Each credit transaction per § 1026.8. |
| (3) | Credits | Amount (and date) of credit to the account during the billing cycle. |
| (4) | Periodic rates |
Rates used to compute interest charge and expressed as an annual percentage rate (APR). The regulation emphasizes the full term "Annual Percentage Rate" and then allows for the use of the abbreviation "APR". See official interpretation. |
| (5) | Balance on which charge computed |
Amount to which a periodic rate was applied, computed per § 1026.60(g), or with an explanation of the computation method. The term "Balance Subject to Interest Rate" is required. |
| (6) | Charges imposed |
Itemized interest and fees. Both interest charges and fees require a total for the statement period and a calendar year-to-date total. Headings must be “Interest Charge" and "Fees". See official interpretation. |
| (7) | Changes in terms and penalty rate | Table of term and rate changes. A summary is required on the front page if a change-in-terms or rate increase notice is provided with the statement. |
| (8) | Grace period | Date/time period by which balance must be paid to avoid additional charges. |
| (9) | Address for notice of billing errors | Mailing address for billing error inquiries. Can alternatively be included on the billing rights statement. |
| (10) | Closing date and new balance | Closing date of the billing cycle and the outstanding balance on that date. |
| (11) | Due date and late payment costs | Payment due date – which must be the same day of the month for each billing cycle – and any late fee that may be imposed past that date. |
| (12) | Repayment disclosures | Includes minimum payment warning, minimum payment estimate, minimum payment total cost estimate, and a toll free number for credit counseling services |
| (13) | Format requirements |
Group the following on the front of the first page: 1. Due date shall be disclosed on the front of the first page of the periodic statement 2. Late payment fee and the APR(s) shall be in close proximity to the due date 3. Ending balance and repayment disclosures shall be disclosed close to the minimum payment due per § 1026.7(b)(12). |
| (14) | Deferred interest or similar program | Date by which an outstanding balance subject to deferred interest must be paid in full to avoid charges. Payoff date must be on the front of any page of the periodic statement during the deferred interest period. |
Credit statement example
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