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#1207686 - 06/25/09 03:02 PM
Re: Credit Card Reform Act/OE Loans
Kahola
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Platinum Poster
Joined: May 2003
Posts: 832
southeast
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all open-end plans, regardless of whether those plans have any collateral.
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From the end spring new beginnings. Pliny the Elder
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#1207776 - 06/25/09 03:58 PM
Re: Credit Card Reform Act/OE Loans
Phoenix
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Gold Star
Joined: Jul 2007
Posts: 305
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Where do I find a copy of the Act?
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#1207932 - 06/25/09 06:18 PM
Re: Credit Card Reform Act/OE Loans
dottiec
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10K Club
Joined: Nov 2002
Posts: 20,656
The Swamp
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bump
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#1208323 - 06/26/09 01:59 PM
Re: Credit Card Reform Act/OE Loans
Rosie O'Grady
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Platinum Poster
Joined: May 2003
Posts: 832
southeast
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TILA definitions: Section 1601(i) The term “open end credit plan” means a plan under which the creditor reasonably contemplates repeated transactions, which prescribes the terms of such transactions, and which provides for a finance charge which may be computed from time to time on the outstanding unpaid balance.
Closest thing to a definition of periodic statement in TILA, Section 1637(b): Statement required with each billing cycle The creditor of any account under an open end consumer credit plan shall transmit to the obligor, for each billing cycle at the end of which there is an outstanding balance in that account or with respect to which a finance charge is imposed,...
If your accounts meet these criteria, then the 21-day rule applies.
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From the end spring new beginnings. Pliny the Elder
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#1208826 - 06/26/09 07:12 PM
Re: Credit Card Reform Act/OE Loans
Phoenix
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100 Club
Joined: Mar 2009
Posts: 124
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I have seen where the 21 day mailing (in addition to other provisions in the Act) may apply to home equity lines of credit, overdraft protection, and personal lines of credit
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#1209224 - 06/29/09 02:20 PM
Re: Credit Card Reform Act/OE Loans
3-2-Go
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Joined: May 2003
Posts: 832
southeast
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No grandfathering known at this time, and not likely to be announced before you'll have to do something for anyone needing to pay by 8/20/09.
CO in Training - you hit the question of the hour. If you can't somehow bump up the statement preparation a few days in order to have statements in the mail at least 21 days before due date, then you either forego late fees on that batch of accounts or need another solution. That other solution may be to re-work your billing cycles on some accounts in order for more, or all, to be mailed their statements at least 21 days before due date. And yes, if you re-work the billing cycles and change due dates, then under 226.9(c), you need to give the 15-day advance notice of the change.
As if that's not enough, it's arguable that changing the billing cycles and due dates for credit card accounts would fall into the Credit CARD Act's new 45-day advance notice rule for "other significant changes."
counting down from 53 days....
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#1209240 - 06/29/09 02:46 PM
Re: Credit Card Reform Act/OE Loans
Phoenix
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Joined: Mar 2009
Posts: 124
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We are extending our credit card grace period to 25 days (previously 20) however our billing cycle dates should not be impacted. Since our agreements state 'at least 20 days' and the extension to 25 is in favor of the cardholder, we are not planning any CIT notices for that specific change.
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#1209252 - 06/29/09 02:55 PM
Re: Credit Card Reform Act/OE Loans
tyond
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Platinum Poster
Joined: May 2003
Posts: 832
southeast
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Tyond - how does that change in grace period meet the "mailed or delivered to the consumer not later than 21 days before the payment due date" requirement? The focus of Section 106, revising TILA 163, seems to be on the mailing of the statement more than the length of any grace period....
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#1210212 - 06/30/09 06:29 PM
Re: Credit Card Reform Act/OE Loans
Kahola
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100 Club
Joined: Nov 2004
Posts: 132
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Phoenix, in a 6/29/09 post, you commented "counting down from 53 days..." Is this referring to a new date to implement another requirement, and if so, where can this be found?
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#1210221 - 06/30/09 06:35 PM
Re: Credit Card Reform Act/OE Loans
Auditman
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Platinum Poster
Joined: May 2003
Posts: 832
southeast
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Just the Section 101 and Section 106 parts that are effective 90 days after the 5/22/09 signing of the Act, therefore 8/20/09.
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From the end spring new beginnings. Pliny the Elder
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#1211613 - 07/02/09 07:51 PM
Re: Credit Card Reform Act/OE Loans
Kahola
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100 Club
Joined: May 2003
Posts: 165
Tennessee
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Everything I have seen on the Act indicated it applies only to credit card accounts. Could anyone provide a link to additional documentation indicating this also covers other open-end accounts not tied to credit cards?
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#1211664 - 07/02/09 08:31 PM
Re: Credit Card Reform Act/OE Loans
Rosie O'Grady
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Power Poster
Joined: Aug 2002
Posts: 3,094
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From Amended TIL Act section 163:
Length of billing period.— (1) In general.— Section 163 of the Truth in Lending Act (15 U.S.C. 1666b) is amended to read as follows: “SEC. 163. Timing of payments. “(a) Time To make payments.—A creditor may not treat a payment on an open end consumer credit plan as late for any purpose, unless the creditor has adopted reasonable procedures designed to ensure that each periodic statement including the information required by section 127(b) is mailed or delivered to the consumer not later than 21 days before the payment due date. “(b) Grace period.—If an open end consumer credit plan provides a time period within which an obligor may repay any portion of the credit extended without incurring an additional finance charge, such additional finance charge may not be imposed with respect to such portion of the credit extended for the billing cycle of which such period is a part, unless a statement which includes the amount upon which the finance charge for the period is based was mailed or delivered to the consumer not later than 21 days before the date specified in the statement by which payment must be made in order to avoid imposition of that finance charge.”.
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#1211724 - 07/02/09 09:57 PM
Re: Credit Card Reform Act/OE Loans
ahou
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100 Club
Joined: May 2003
Posts: 165
Tennessee
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Thanks Ahou. Guess I overlooked that it was not limited to credit cards.
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#1215879 - 07/10/09 06:27 PM
Re: Credit Card Reform Act/OE Loans
Kahola
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Joined: Nov 2004
Posts: 132
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This is probably a very elementary question, but here goes: Is the "as of" statement cut-off date considered to be the same date that the statement is "mailed or delivered" to the consumer?
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#1215891 - 07/10/09 06:41 PM
Re: Credit Card Reform Act/OE Loans
Auditman
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Joined: Aug 2002
Posts: 3,094
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Amended TILA states "is mailed or delivered to the consumer not later than 21 days before the payment due date." So you would have to mail or deliver 21 days before the pmt is due. Your stmt cut off date would be 2 or 3 days prior to the day you mail - to give you time to process the stmt for mailing.
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#1216993 - 07/14/09 04:34 PM
Re: Credit Card Reform Act/OE Loans
ahou
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Joined: Mar 2009
Posts: 124
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So as am I reading 163b - if a grace period (the time period to repay without incurring additional f/c) is provided, no f/c can be applied unless the billing statement is mailed 21 days before the date stated to avoid the f/c (expiration of the grace period). This is why we are extending our grace period from 20 days to 25. Did you all interpret differently?
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