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Change in Circumstance-How to Check APR Accuracy

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Question: 
We typically provide an updated TIL any time a revised GFE is provided, even if the TIL revised disclosure threshold is not triggered. We do this from a customer service standpoint. So let's say a change in circumstance happens, so we send an "updated" TIL along with the GFE (note that the APR revised disclosure threshold was less than .125%). Later another change in circumstance happens after this one which affects the APR. Which APR do we use in checking the APR accuracy, the initial APR or the "updated" APR? Note again that the "updated" TIL was not required to be sent but it was sent anyway from a customer service standpoint.
Answer: 

From Regulation Z Section 1026.19(a)(2)(ii):

(ii) If the annual percentage rate disclosed under paragraph (a)(1)(i) of this section becomes inaccurate, as defined in Section 1026.22, the creditor shall provide corrected disclosures with all changed terms....

It would be my opinion that the "courtesy" ETIL was not issued under paragraph (a)(1)(i) or under (a)(2)(ii) therefore you would need to compare the APR to the original ETIL disclosure.

First published on BankersOnline.com 3/12/12

First published on 03/12/2012

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