Is a Monthly Statement Required on Open End?
by Dan Persfull, BOL Guru Guru BIOS
Question: Are periodic monthly statements required on any open end consumer line of credit regardless of collateral?
Answer by Dan Persfull: Yes. The required content will be found in 226.7.
Answer by Richard Insley: No. A periodic statement is required, but the billing cycle does not have to be monthly (see Section 226.2(a)(4).) It can be as long as a quarter. In addition, you do not have to send a statement unless a FC has been imposed or the account has a debit or credit balance of more than $1. Also excused are statements for accounts that are in collection due to delinquency or have been deemed uncollectible.
Answer by Dan Persfull: I agree the statement does not have to be monthly nor does it has to be sent if no activity during the billing period, however it is unusual to see a periodic billing period longer than one month on a credit account.
Answer by Richard Insley: My bank had a HELOC product for private banking clients that had quarterly statements. There was not much activity and we were doing the periodic disclosures by hand, so we didn't want to do them more often than absolutely necessary.
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