106 STAT. 3892 PUBLIC LAW 102-550—OCT. 28, 1992

(b) USE OF "RULE OF 78's" PROHIBITED.—For the purpose of
calculating any refund of interest required under subsection (a) /
for any precomputed consumer credit transaction of a term exceed- I
ing 61 months which is consummated after September 30, 1993,

the creditor shall compute the refund based on a method which
is at least as favorable to the consumer as the actuarial method.

(c) STATEMENT OF PREPAYMENT AMOUNT.—

(1) IN GENERAL.—Before the end of the 5-day period begin-
ning on the date an oral or written request is received by
a creditor from a consumer for the disclosure of the amount
due on any precomputed consumer credit account, the creditor
or assignee shall provide the consumer with a statement of—

(A) the amount necessary to prepay the account in
full; and

(B) if the amount disclosed pursuant to subparagraph
(A) includes an amount which is required to be refunded
under this section with respect to such prepayment, the
amount of such refund.

(2) WRITTEN STATEMENT REQUIRED IF REQUEST is IN WRIT-
ING.—If the customer's request is in writing, the statement
under paragraph (1) shall be in writing.

(3) 1 FREE ANNUAL STATEMENT.—A consumer shall be enti-
tled to obtain 1 statement under paragraph (1) each year with-
out charge.

(4) ADDITIONAL STATEMENTS SUBJECT TO REASONABLE
FEES.—Any creditor may impose a reasonable fee to cover the
cost of providing any statement under paragraph (1) to any
consumer in addition to the 1 free annual statement required
under paragraph (3) if the amount of the charge for such
additional statement is disclosed to the consumer before fur-
nishing such statement.

(d) DEFINITIONS.—For the purpose of this section—

(1) ACTUARIAL METHOD.—The term "actuarial method"
means the method of allocating payments made on a debt
between the amount financed and the finance charge pursuant
to which a payment is applied first to the accumulated finance
charge and any remainder is subtracted from, or any deficiency
is added to, the unpaid balance of the amount financed.

(2) CONSUMER, CREDIT.—The terms "consumer" and "credi-
tor" have the meanings given to such terms in section 103
of the Consumer Credit Protection Act.

(3) CREDITOR.—The term "creditor"—

(A) has the meaning given to such term in section
103 of the Consumer Credit Protection Act; and

(B) includes any assignee of any creditor with respect
to credit extended in connection with any consumer credit
transaction and any subsequent assignee with respect to
such credit.

Subtitle B—Bank Regulatory Clarification
Provisions

SEC. Ml. AMENDMENT RELATING TO ESTIMATES OF REAL ESTATE
SETTLEMENT COSTS.

Section 5(d) of the Real Estate Settlement Procedures Act of
1974 (12 U.S.C. 2604(d)) is amended by striking the last sentence