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In cases where termination is adverse action, notification is required under § 1002.9. If a creditor terminates credit accounts that have low credit limits (for example, under $400) but keeps open accounts with higher credit limits, the termination is adverse action and notification is required under § 1002.9. An adverse action notice need not be given to the mortgagor or the transferee.
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Each comment in the commentary is identified by a number and the regulatory section or paragraph that it interprets. If a transaction provides for the deferral of the payment of a debt, it is credit covered by Regulation B even though it may not be a credit transaction covered by Regulation Z (Truth in Lending) (12 CFR Part 1026).
For example, comments to § 1002.2(c) are further divided by subparagraph, such as comment 2(c)(1)(ii)-1 and comment 2(c)(2)(ii)-1. Further, the definition of creditor is not restricted to the party or person to whom the obligation is initially payable, as is the case under Regulation Z.
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References are to sections of the regulation or the Equal Credit Opportunity Act (15 U. This commentary is the means by which the Bureau of Consumer Financial Protection issues official interpretations of Regulation B.