River girl - not sure how you get away with it. From the preamble to the new regulation: "The current version of Regulation Z, however, applies the 14-day requirement even when the consumer does not receive a grace period. Specifically, current § 226.5(b)(2)(ii) requires that creditors mail or deliver periodic statements 14 days before the date by which payment is due for purposes of avoiding not only finance charges as a result of the loss of a grace period but also any charges other than finance charges (such as late fees)."

complyorelse - also from the preamble: "Furthermore, applying different standards could encourage creditors to establish a payment due date that is different from the date on which the grace period expires, which could lead to consumer confusion. Accordingly, the Board is amending § 226.5(b)(2)(ii)to require that creditors adopt reasonable procedures designed to ensure that periodic statements are mailed or delivered at least 21 days before the payment due date and the expiration of the grace period."

Its RC - the 21 day period is before the legal payment obligation date which is the payment due date - this does not included the grace period before imposing a late fee.

Its RC,
The period of time between the date you generate your statement to the contractual due date must be 21 days. Do not count your grace period.

A question regarding the 45 day notice. Our HELOCs are tied to Prime. Is there an exception to the 45 day notice if your rate is tied to an index such as Prime?

I think you would fall under the second exception:

The second exception applies to increases in variable annual percentage rates that change according to operation of a publicly available index that is not under the control of the creditor.

Basically, yes. Since you are already disctate in your contratc how and when the rate can change based on a predetermined index, you are fine.

If rate changes were solely at your discretion, then you may be subject to the 45 day rule there as well.

I thought the 45 day notice was only for credit card accounts that are not home-secured and that HELOCs are 15 days. Am I missing something?

The amendment for the 21 day notice was made to 226.7, which is the periodic statement requirements for all open-end credit accounts.

Hence the may be, as I am not totally sure...

I've got that part (at least i think I do), but I was referring to the post by complyorelse that referenced a 45 day notice for HELOCs. I'm not sure what that is.

That would be a change of terms notice and it remains at 15 days for HELOCs - but you are really limited on allowable changes to HELOCs.

That's what I thought. Thanks, Randy.

Does anyone use Fiserv and have overdraft line of credit attached to their checking. I would like to see what Fiserv has told you about the overdraft line of credit. PM me.

I've read that the due date for credit card accounts must be on the same day each month. I presume this means the same calendar day? Our credit cards are currently set for the due date being on the same "business day" which causes the due date to fluctuate each month. Thanks.

"I've read that the due date for credit card accounts must be on the same day each month. "


Where???

This is from the Credit Card Act, Section 106: Rules Regarding Periodic Statements: Due Dates for Credit Card Accounts. The Act requires the payment due date for a credit card account to be the same day each month. This part of the Act has an implementation date of 2/22/2010. As I now understand it, the FRB has been tasked with issing a final rule to implement the requirements of the Act and this part will be covered in a future interim rule. We should know whether it means business day or calendar day when FRB guidance has been issued.

Well, until they issue the guidance - your guess is a good as mine.

Yes and there's a sister provision to that which states that if the due date is on a day on which the creditor does not receive or accept payments by mail (including weekends and holidays), the creditor may not treat a payment received on the next business day as late for any purpose.....fun, fun, fun......

This requirement for periodic statements also applying to HELOCs (req. to mail/deliver at least 21 days before the payment due date) - I agree. However, it appears that Jack Henry apparently does not, and they have told us they are not making changes to the system to fix this until 2010. Anyone else run into this trouble? JH told us only one other bank reported the potential issue this morning.

"This requirement for periodic statements also applying to HELOCs - I agree."

OK- we have been talking about a lot of requirements - what does "This requirement" refer too? If you are talking about the 21 day requirement then you can rely on this for HELOCs:

"As a result, it is possible that, for a short period of time after August 20, some periodic statements for open-end consumer credit plans other than credit cards may disclose payment due dates and grace period expiration dates (if applicable) that are technically inconsistent with the interim final rule. In these circumstances, the creditor may remedy this technical issue by prominently disclosing elsewhere on or with the periodic statement that the consumer’s payment will not be treated as late for any purpose if received within 21 days after the statement was mailed or delivered. Under no circumstances does revised § 226.5(b)(2)(ii) permit a creditor to treat a payment as late for any purpose if that payment is received within 21 days after mailing or delivery of the periodic statement."

Then the question is "sometime in 2010" going to be considered a "short period of time" by the regulators. You still have to immediately change your late charge and grace period parameters.

Thank you, Randy!

FlamingoGal - We use Jack Henry as well, and we are tweaking our statement cycle parameters, so that the statements will cut earlier. If you need more specifics, send me a PM and I will try to get more information to you.

This is what the FDIC guidance is saying now in FIL-44-2009 that was issued just today.

"The Credit CARD Act amends TILA to require the payment due date for all open-end credit accounts, including credit cards, to be the same day each month. If the due date is a day on which the creditor does not receive or accept payments by mail (such as a weekend or holiday), the creditor may not treat the receipt of a payment the next business day as late."

This impacts our Overdraft Protection lines of credit, because they are billed at the time the DDA statement is cut (not always the same day of each month). Payments are due and automatically debited from the DDA 21 days after the bill date. Even though we don't late charge these accounts, this FDIC guidance seems to indicate that we need to have a due date that is the same each month (i.e. - always on the 20th, 30th, etc.).

Argh......

How in the bloody heck are we supposed to have overdraft lines pay on the same date when they are tied to the statement date, which can vary, as AuditorK posted? Good grief...this is madness.

Laffy - sent you a PM - we are also struggling to figure out how to get JH system to get this right on the ODP lines of credit too since right now, those auto draft, and are on a combined statement with the checking right now. No word from JH at this point.