Thread Options 
|
#1349036 - 02/25/10 03:44 PM
Re: Regulation Z - Open End changes - 7-1-10
Deena
|
Gold Star
Joined: Dec 2009
Posts: 298
New York
|
This has me stumped. Customer applies for a $1000 LOC credit card on 2/26/10 and is approved at 15%. He maxes the card to the full $1000 and applies for a LOC increase on 4/26/10 only with the LOC increase app his credit shows deterioration and is now approved at 17%. Since the account is opened less than 1 year am I prohibited from applying the 17% to the account completely or am I allowed to charge 17% on the LOC increase and apply the 15% to the original 15% (this is not one of those consolidation of accounts that 226.55(b)(3)-3iiA is talking about).
|
|
Return to Top
|
|
|
|
|
#1349186 - 02/25/10 05:36 PM
Re: Regulation Z - Open End changes - 7-1-10
Deena
|
Platinum Poster
Joined: Jul 2001
Posts: 566
Marietta, GA
|
Deanna,
In the 1100+ page version of the final rule
pages 832-833 give some examples that I found helpful.
|
|
Return to Top
|
|
|
|
|
#1349278 - 02/25/10 07:19 PM
Re: Regulation Z - Open End changes - 7-1-10
Game On
|
Power Poster
Joined: Nov 2000
Posts: 2,701
PA
|
Thanks, UGA Fan - That's what I was basing my original thought on (that it applies to the actual due date rather than the last day of the courtesy period). I got confused when I read this from the BOL webinar Q & A: Question 5. Please clarify the following:
“226.10(d) Crediting of payments when creditor does not receive or accept payments on due date.”
Since all non-credit card accounts (consumer open-end plans) have a set period of days from the due date until a late charge is assessed, how does this section really affect the non-credit card accounts (ex: 15 days until payment is considered late)? This section does not state that a finance charge cannot be imposed, it specifically states it cannot be considered late for any purpose.
Answer: If a late payment will be imposed if a payment is not made by Monday but you do not receive payments on that date because it is a federal holiday and the postal service does not deliver mail, you may not impose a late if the payment is made on Tuesday. Treating a payment as late for any purpose includes increasing the annual percentage rate as a penalty, reporting the consumer as delinquent to a credit reporting agency, assessing a late fee or any other fee, initiating collection activities, or terminating benefits (such as rewards on purchases) based on the consumer’s failure to make a payment within a specified amount of time or by a specified date. This answer, since it doesn't really address the courtesy period referenced in the question, implies (at least to me) that the reg applies to the last day of the courtesy period. Maybe I'm just reading or interpreting it wrong.
_________________________
Opinions expressed are mine and not necessarily those of my employer.
|
|
Return to Top
|
|
|
|
|
#1349830 - 02/26/10 06:03 PM
Re: Regulation Z - Open End changes - 7-1-10
RR Joker
|
Gold Star
Joined: May 2006
Posts: 452
Between here and there
|
This question relates to the Webinar Jack and Mary Beth presented last week. On page 5 the table of Applicability and Effective Date shows that sec. 226.5(b)(2)(ii)(B) (periodic statement sent before end of grace period) applies to all open-end consumer credit plans. From all I have read, I believe this only applies to credit cards.
Also, the table shows that 226.7(b)(13) (format for due date, etc.) applis to all open-end consumer credit plans, all open-end (not home secured)consumer credt plans, credit card accounts under an open-end (not home secured)consumer credit plan, and Credit or charge card account subject to 226.5a. Again, I believe this section only applies to credit cards.
Can anyone confirm that these 2 sections apply only to credit cards?
|
|
Return to Top
|
|
|
|
#1350163 - 02/26/10 10:48 PM
Re: Regulation Z - Open End changes - 7-1-10
MyScamper
|
Gold Star
Joined: Aug 2005
Posts: 443
Northwest
|
The more I read the more confused I get regarding the 21 day statement requirement for open-end credit ( not credit cards) & HELOC's.
On both plans we offer a 10 day period after the due date, before a late charge is assessed. Where I am getting confused is "grace day" definintion. In our documents we refer to this 10 day period as grace days although interest does accrue. So, can we count these days in the 21 days? Does this even apply to HELOC's? I went looking through the HELOC proposed rules and I don't think it does, but boy am I confuse. Any help, direction etc. would be most appreciated.
|
|
Return to Top
|
|
|
|
|
#1350335 - 03/01/10 02:16 PM
Re: Regulation Z - Open End changes - 7-1-10
MyScamper
|
Power Poster
Joined: Nov 2000
Posts: 2,701
PA
|
There is a reference in 226.7(b)(13) to 226.7(b)(10) which does apply to all open-end except HELOCs, not just credit cards. So, this requirement was effective 2/22. The ending balance required by paragraph (b)(10) of this section and the disclosures required by paragraph (b)(12) of this section shall be disclosed closely proximate to the minimum payment due. Section 226.5(b)(2)(ii)(B) applies to all open-end accounts (except home secured) that have a grace period. You need to look at the definition of grace period. It's not the same as a courtesy period and most bank open-end credit plans will not have a grace period.
_________________________
Opinions expressed are mine and not necessarily those of my employer.
|
|
Return to Top
|
|
|
|
|
#1350400 - 03/01/10 04:00 PM
Re: Regulation Z - Open End changes - 7-1-10
Deena
|
Gold Star
Joined: May 2006
Posts: 452
Between here and there
|
After reading the reg AGAIN, I agree with you Deena. They really made it confusing by making 226.7(b)(11) and (12) apply only to credit cards and the rest of the 226.7(b) apply to all open-end (not home secured) credit plans.
Thanks.
|
|
Return to Top
|
|
|
|
|
#1351672 - 03/03/10 06:03 PM
Re: Regulation Z - Open End changes - 7-1-10
MyScamper
|
100 Club
Joined: Mar 2009
Posts: 124
|
I've posted this in a separate thread but I have had NO takers. Forgive me if this gets the 'duplicate posting' label. We are doing a convenience check mailing for credit cards, I need to know if the disclosure table is required now or if that is a July requirement AND do we have to put the go to rate (rate that applies after the promotional period ends) in the same line as the promotional rate (ex. 0% APR until October 2010, after that an APR of 10%). If anyone has input, PLEASE let me know.
|
|
Return to Top
|
|
|
|
|
#1351680 - 03/03/10 06:14 PM
Re: Regulation Z - Open End changes - 7-1-10
tyond
|
Power Poster
Joined: Aug 2002
Posts: 3,094
|
F. Checks that access a credit card account (§ 226.9(b)). A creditor must comply with the disclosure requirements of § 226.9(b)(3) of the final rule for checks that access a credit account that are provided on or after July 1, 2010. Thus, for example, if a creditor mails access checks to a consumer on June 30, 2010, these checks are not required to comply with new § 226.9(b)(3), even if the consumer receives them on July 7, 2010.
Must be substantially similar to sample G-19
_________________________
Opinions are my own and not of my employer.
|
|
Return to Top
|
|
|
|
|
#1352778 - 03/04/10 10:23 PM
Re: Regulation Z - Open End changes - 7-1-10
Reed
|
Diamond Poster
Joined: Nov 2004
Posts: 2,310
|
See my post in this thread .
_________________________
Opinions expressed are my own and not necessarily those of my employer. They are not legal advice.
|
|
Return to Top
|
|
|
|
|
#1353402 - 03/05/10 09:06 PM
Re: Regulation Z - Open End changes - 7-1-10
Reed
|
100 Club
Joined: Mar 2009
Posts: 124
|
Thanks Ahou - I thought it was July. Someone in cards got a check mailing that used the table, it made me nervous since I had already said it wasn't needed now. You have so many issuers going ahead with implementing July changes, it just makes it harder to find the line in the sand. Any thoughts with using the go to rate in the same line as the promotional rate to be in close proximity?
|
|
Return to Top
|
|
|
|
|
#1353569 - 03/06/10 06:56 PM
Re: Regulation Z - Open End changes - 7-1-10
Kitty
|
Power Poster
Joined: Aug 2002
Posts: 3,094
|
Can you be more specific?
_________________________
Opinions are my own and not of my employer.
|
|
Return to Top
|
|
|
|
|
#1353577 - 03/07/10 03:54 AM
Re: Regulation Z - Open End changes - 7-1-10
Kitty
|
10K Club
Joined: Jul 2001
Posts: 85,443
Galveston, TX
|
The application of payments is a contractual issue and may also be governed under State law. I am not aware that Regulation Z addresses the application of payments.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com
|
|
Return to Top
|
|
|
|
|
#1353682 - 03/08/10 04:09 PM
Re: Regulation Z - Open End changes - 7-1-10
Kitty
|
New Poster
Joined: Feb 2010
Posts: 24
|
Question re: Credit Cards and Account Opening Disclosures....
The new regs talk about the requirement for a disclosure in table format to be issued at Account Opening on open-end credit, similar to the Schumer table disclosed in CC soliciations.
Does this mean that a second table needs to be disclosed for new CC accounts (esp. if we have one, fixed rate)? We've received conflicting opinions on this - our CC processor (who currently provides our CC app, agrmnt, and disclosures) thinks the disclosure we provide with the application and agreement suffices. The vendor we source our other disclosures from thinks we need to send a seperate Account Opening disclosure, to be mailed when we approve the account and order the card.
|
|
Return to Top
|
|
|
|
|
#1354950 - 03/10/10 02:57 PM
Re: Regulation Z - Open End changes - 7-1-10
focus
|
Gold Star
Joined: Mar 2008
Posts: 294
The Texas Hill Country
|
Question regarding Change In Terms notification for open end non-credit card account. We are going to increase rates and implement a floor on our personal lines of credit.
Will I need to comply with the July 1 Change In Terms notification requirements (tabular format, etc.) if my notice will go out prior to July 1 but will be effective after July 1?
I don't think so - I think it depends on when the notification was sent - but I'm so frazzled right now I'm not sure. While it might be easier to just do it, I'd like to know if I'm "required" to.
_________________________
|
|
Return to Top
|
|
|
|
|
#1355652 - 03/11/10 02:29 PM
Re: Regulation Z - Open End changes - 7-1-10
SaaL
|
Platinum Poster
Joined: May 2003
Posts: 832
southeast
|
There's a section that may help, starting with Federal Register p. 7782, that goes through what to do as the various deadlines occur/approach:
"....For example, such a creditor may mail a change-in-terms notice to a consumer on February 20, 2010 disclosing a change effective on March 7, 2010. In contrast, a notice of a rate increase sent on February 22, 2010 would be required to comply with § 226.9(c)(2) of the final rule (except for the formatting requirements of § 226.9(c)(2)(iv)(D)), and thus the change disclosed in the notice could have an effective date no earlier than April 8, 2010...."
Read around that area, especially the following few pages, to see what may apply to your situation -
_________________________
From the end spring new beginnings.
Pliny the Elder
|
|
Return to Top
|
|
|
|
|
#1355788 - 03/11/10 03:57 PM
Re: Regulation Z - Open End changes - 7-1-10
Phoenix
|
Gold Star
Joined: Mar 2008
Posts: 294
The Texas Hill Country
|
Thanks Phoenix! Exactly what I was looking for.
_________________________
|
|
Return to Top
|
|
|
|
|
#1356428 - 03/12/10 12:33 AM
Re: Regulation Z - Open End changes - 7-1-10
#Just Jay
|
Diamond Poster
Joined: Nov 2004
Posts: 1,005
|
I am looking at the account opening disclosures for the open end loans.
G-17(a) (b) and (c) are credit card examples and G-17(d) is for line of credit.
What about for our open end collateralized loans? Do we use G-17(d) for those loans?
Also.... for our visa loans, the consumer comes into the branch and sits with a lender to open....do we only give the account-opening disclosure and not worry about the application and solicitation disclosures or would we give both sets of disclosures in that situation.
|
|
Return to Top
|
|
|
|
|
#1357397 - 03/15/10 01:30 PM
Re: Regulation Z - Open End changes - 7-1-10
In the middle of it
|
Platinum Poster
Joined: May 2003
Posts: 832
southeast
|
Actual due date. Courtesy periods are just that - INformal.
_________________________
From the end spring new beginnings.
Pliny the Elder
|
|
Return to Top
|
|
|
|
|
|
Previous Thread
Index