I think the FDIC misspoke as this was not part of the recent amended rules and it is my understanding that additional rules on the due date issue are pending. The July 1, 2010 amendments do address the treatment of receipt of payments when the due date is on the woeekend, but only for mailed payments.

Reviewing the actual act, the effective date on the due date being the same day each month has a 9 month effective date.

I have e-mailed the FDIC on this issue.

We are a JHA bank and have also tweaked the statement cycle parameters to meet the 21 day requiremnet for HELOCS and open end personal lines of credit.
NOW this morning have FDIC FIL 44-2009.
Payment date on same day of each month and receive payment on weekend or holiday may not treat as late was new to me.
Is this part of the AUG 20?

Here is the FDIC response:

You are correct. We apologize for the confusion but the “same due date each month” requirement for credit cards (section 106(a)) does not take effect until February 2010 while the 21 day periodic statement requirement for all forms of open-end credit (section 106(b)) are effective on August 20, 2010. Look for a corrected FIL as soon as possible.

Again, sorry for the confusion and thank you for your inquiry.

I am so confused!!!! As discussed above - my understanding is that the periodic statement being mailed at least 21 days before payment due date is required on ALL open-end credit including HELOCs - regardless of whether or not the HELOC is accessible via credit card. I've read this section of the rules many many times. However, the REVISED FDIC FIL today now states (emphasis added):


Randy - can you ask them about this, too? Perhaps they need a revision to the revision. Or, perhaps, I just need to go back and read yet again, which is entirely possible that I'm just not getting it.

That confused me to

Same here! Can these changes be any more of a nightmare!

Yeah! I'm not alone!!! THANK YOU for letting me know that I wasn't the only one confused!

Randy, your post says August 2010 is that correct? or is it 2009? for the 21 day periodic statement provision

I give up! Just got the HELOC statements changed to cove the 21 day stuff and now FDIC says only on HELOC's accesed by credit cards! Just had some preliminary traning on the HPML mess; told the lenders that yes they can have less than a 7 year balloon, just won't have the "safe harbor", then I find out FDIC says NO! Nothing less than 7 years! I don't know if I need to get my act together (like retire) or if everyone in Washington is one brick light of a load!

Hey Ya'll,
FIL 44- 2009 has been revised. From a quick look, only HELOC's that are accessible by credit card will have to comply with 21 day advance stmt requirements.

(Got so excited when I saw this, I didn't see the posts where ya'll already knew this!)

Oh well, I think ours already were okay, so I'm just not gonna sweat this one..

Washington is changing the ballgame so fast even our poor regulators can't keep up with it...what a mess!

Has anyone confirmed with the FDIC that is really and truly is only HELOC's accessed by a credit card, and not "all open-end consumer credit accounts"?

If so, please post so we can all do a collective happy-dance!

I don't see anything wrong with their statement. It reads:

"Applicable to all open-end consumer credit accounts, including credit cards and home equity lines of credit accessed by a credit card, creditors must mail or deliver periodic statements at least 21 days before the payment is due."

Are you guys trying to say that a HELOC without a credit card falls outside of the "ALL open-end consumer credit accounts"?

The following phrase of the sentence is not a qualifier.

I believe that was a typo by the FDIC. It is definitely 2009.

Oh jeez! I finally convinced management/operations to change the HELOC billing cycles to allow for 21 days and now this! I'm gonna look like an idiot if I now tell them they don't need to. I sure won't hold any credibility any longer...not that I ever did anyway. I would like to know if this is just the FDIC's opinion and whether it's another mistake.

Randy,
If this is not the case, why the need for the revised FIL?

We can dream, can't we?!? ha ha!

Breath - go ahead and breath - you did not make a mistake and that is not what the FDIC said.

The reason for the revised FIL was that in the original they said that payment due dates had to tbe the same every month and that was effective 8/20, when in fact the regulation for that have not yet been issued.

Only the Federal Reserve can change the rules - so relax.

AuditorK do what I did. I took a hard copy of the Revised FIL showing everyone that it really had changed!

I'm sorry, but I still believe that the 21 day rules applies to all open end credit. In the FIL, the word "all" appears in bold text. I would not rely on the reference to HELOCS accessed by a credit card.

Provisions of the Credit CARD Act generally take effect on February 22, 2010, and the FRB will issue additional implementing regulations. However, the following provisions immediately affect open-end credit plans, including credit cards. On or after August 20, 2009:

•Applicable to all open-end consumer credit accounts, including credit cards and home equity lines of credit accessed by a credit card, creditors must mail or deliver periodic statements at least 21 days before the payment is due.
•Applicable to credit card accounts, creditors must give 45-days notice of increases in the Annual Percentage Rate (APR) or other significant changes in terms, including a notice of the right to cancel the account.

The proposed Reg Z for HELOCs supports the 21 day stmt rule for all open-end plans, including HELOCs. This is from the preamble:

Section 226.5(b)(2)(ii) requires that the creditor mail or deliver a periodic statement at least 14 days before the end of any period allowing the consumer to pay to avoid the imposition
of finance or other charges. Section 106(b) of the 2009 Credit Card Act (cited above), amends TILA Section 163 (15 U.S.C. 1666b) to require that the period between the mailing of the
statement and the due date to avoid finance or other charges must be at least 21 days. On July 15, 2009, the Board published an interim final rule amending § 226.5(b)(2)(ii) to implement this provision of the Credit Card Act, which under the legislation becomes effective 90 days after
enactment. Accordingly, no proposed amendments to § 226.5(b)(2)(ii) are in this proposal. When this proposal is adopted into a final rule, § 226.5(b)(2)(ii) will reflect the amendments
made to implement the Credit Card Act.

OK, tell me this. Our notes do not state any particular due date. It just says that they will have a 15 day grace period after the due date which will be on their statement. So can we continue to drop the statement at the end of the month and just change the due date on the statement 25 days later and put a little blurb on the statement letting the customer know that they now have a longer time to make their payment???