The proposal also addresses concerns about prepayment penalties and the impact on consumers when lenders fail to establish escrow accounts for taxes and insurance. We are working toward issuing final regulations in July. For credit cards, the Federal Reserve has employed a two-step strategy toward improving consumer protection.
Our first step was the Board's proposal to substantially revise and improve credit card disclosures under the Truth in Lending Act. We have done extensive consumer testing to determine the type of information and its format that consumers find most useful in shopping for and choosing a credit card.