The Federal Reserve Board on Tuesday proposed revisions in its Truth-in-Lending commentary to address closed-end credit and late payments.

To determine when a loan qualifies as closed-end, lenders should look at the purpose of the credit, according to the Fed. "If the retailer of pianos establishes a line of credit for the purpose of purchasing a piano, it is unlikely that the creditor can reasonably contemplate repeated transactions," it said. That means the lender must consider the credit as closed-end, which triggers more disclosures than open-end credit.

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