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An individual borrower on a consumer unsecured line of credit has requested that the bank add an additional borrower to the account. Does Regulation Z require the bank to provide the new borrower account-opening disclosures?

An individual borrower on a consumer unsecured line of credit has requested that the bank add an additional borrower to the account. Does Regulation Z require the bank to provide the new borrower account-opening disclosures?

No. Section 1026.5(d) explains, “If there is more than one consumer, the disclosures may be made to any consumer who is primarily liable on the account.” (Different rules apply in transactions subject to the right of rescission.) However, there may be legal or similar provisions (e.g., state or contract law) which would warrant providing a copy of the agreement and other information to the new borrower. Please check with legal counsel for guidance. (June 2020)

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