source:
  type: regulation
  id: reg-v-1022.71
  authority: 12 CFR §1022.71 — Definitions (Regulation V)
  description: 12 CFR §1022.71 — Definitions.
  coverage_tier: context
obligations:
- id: reg-v-1022.71-full
  canonical_id: reg-v-1022.71-full
  section: 12 CFR §1022.71 — Definitions
  type: reference
  tags:
  - regulator-direct
  - fcra
  - corpus-expansion
  - tier-context
  primary_source:
    tier: 1
    authority: 12 CFR §1022.71 — Definitions (Regulation V)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1022.71
    snapshot_id: 51c984e7349a1562
    fetched_at: '2026-06-17T20:22:49Z'
    content_hash: sha256:117be8025b97853a05a0793a8c85cef064a72825af9e8a81cebf3a0e5889f0cd
    paragraph_quote: '§ 1022.71 Definitions. For purposes of this subpart, the following
      definitions apply: (a) Adverse action has the same meaning as in 15 U.S.C. 1681a(k)(1)(A)
      . (b) Annual percentage rate has the same meaning as in 12 CFR 1026.14 (b) with
      respect to an open-end credit plan and as in 12 CFR 1026.22 with respect to
      closed-end credit . (c) Closed-end credit has the same meaning as in 12 CFR
      1026.2 (a)(10). (d) Consumer has the same meaning as in 15 U.S.C. 1681a(c) .
      (e) Consummation has the same meaning as in 12 CFR 1026.2 (a)(13). (f) Consumer
      report has the same meaning as in 15 U.S.C. 1681a(d) . (g) Consumer reporting
      agency has the same meaning as in 15 U.S.C. 1681a(f) . (h) Credit has the same
      meaning as in 15 U.S.C. 1681a(r)(5) . (i) Creditor has the same meaning as in
      15 U.S.C. 1681a(r)(5) . (j) Credit card has the same meaning as in 15 U.S.C.
      1681a(r)(2) . (k) Credit card issuer has the same meaning as card issuer, as
      defined in 15 U.S.C. 1681a(r)(1)(A) . (l) Credit score has the same meaning
      as in 15 U.S.C. 1681g(f)(2)(A) . (m) Firm offer of credit has the same meaning
      as in 15 U.S.C. 1681a(l) . (n) Material terms means: (1) (i) Except as otherwise
      provided in paragraphs (n)(1)(ii) and (n)(3) of this section, in the case of
      credit extended under an open-end credit plan , the annual percentage rate required
      to be disclosed under 12 CFR 1026.6 (a)(1)(ii) or 12 CFR 1026.6 (b)(2)(i), excluding
      any temporary initial rate that is lower than the rate that will apply after
      the temporary rate expires, any penalty rate that will apply upon the occurrence
      of one or more specific events, such as a late payment or an extension of credit
      that exceeds the credit limit, and any fixed annual percentage rate option for
      a home equity line of credit; (ii) In the case of a credit card (other than
      a credit card that is used to access a home equity line of credit or a charge
      card), the annual percentage rate required to be disclosed under 12 CFR 1026.6
      (b)(2)(i) that applies to purchases (“purchase annual percentage rate”) and
      no other annual percentage rate , or in the case of a credit card that has no
      purchase annual percentage rate , the annual percentage rate that varies based
      on information in a consumer report and that has the most significant financial
      impact on consumers; (2) In the case of closed-end credit , the annual percentage
      rate required to be disclosed under 12 CFR 1026.17(c) and 1026.18(e) ; and (3)
      In the case of credit for which there is no annual percentage rate , the financial
      term that varies based on information in a consumer report and that has the
      most significant financial impact on consumers, such as a deposit required in
      connection with credit extended by a telephone company or utility or an annual
      membership fee for a charge card. (o) Materially less favorable means, when
      applied to material terms , that the terms granted, extended, or otherwise provided
      to a consumer differ from the terms granted, extended, or otherwise provided
      to another consumer from or through the same person such that the cost of credit
      to the first consumer would be significantly greater than the cost of credit
      granted, extended, or otherwise provided to the other consumer . For purposes
      of this definition, factors relevant to determining the significance of a difference
      in cost include the type of credit product, the term of the credit extension,
      if any, and the extent of the difference between the material terms granted,
      extended, or otherwise provided to the two consumers. (p) Open-end credit plan
      has the same meaning as in 15 U.S.C. 1602(i) , as interpreted by the Bureau
      in Regulation Z ( 12 CFR part 1026 ) and the Official Interpretations to Regulation
      Z (Supplement I to 12 CFR part 1026 ). (q) Person has the same meaning as in
      15 U.S.C. 1681a(b) .'
  judgment: false
