We have line of credit loans that are only drawn upon to cover deposit account overdrafts. We initially disclosed that advances on the line would be in $25 increments and now we want to change that to $100 increments. Do we need to send a notice to customers 15 days prior to making the change? I can't tell if it falls under what is required by 226.6.

Personally, and I know someone will correct me if I'm stating improperly, you have a contract that states the $25 increments and that can't be changed by sending a letter. I believe a new contract will be required (and I'm assuming that you have a signed note).

You know, that's what was in the back of my mind. If anyone else can confirm or deny this, I'd appreciate it.

It would depend on whether your initial contract allows for a change in terms. If it does, then 15 day advance notice or longer period of time called for in the contract would suffice.

Well, our contract states that "we may change any term in the agreement upon appropriate advance notice by applicable law". Looks like we can change the minimum advance amount if we notify the customer. Thanks for the responses.