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#1286552 - 11/13/09 09:50 PM Re: Regulation Z - Open End changes - 7-1-10 #Just Jay
Brad B Offline
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Lending Compliance
#1286648 - 11/13/09 10:48 PM Re: Regulation Z - Open End changes - 7-1-10 Brad B
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#1286860 - 11/16/09 02:40 PM Re: Regulation Z - Open End changes - 7-1-10 QCL
tyond Offline
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Here goes - this is what I came up with for Feb 22 requirements on credit cards (not including the 8/20 changes). I welcome any additions/corrections. Does anyone know if the ability for cardholders to reject requested balance transfers after they rec. disclosures (10 days after mailing) is for Feb or July? Thanks!!

Same Pmt Due Date (7.b)
Min Pmt Warning (7.b)
Late Pmt Warning (7.b)
Repayment Estimate (7.b)
Credit Counseling Info (7.b)
New Disclosures at Renewal if any changes were not previously provided (9.e)
Protected Balances due to CIT or Penalty Notices (55)
Reasonable Cut Off Time (10.b)
Ability to Repay (51)
Under 21 Account Opening and Line Increases (51.b)
Overlimit Fee Requirements (56)
Terms Provided to Board (58.d) (registerd by Feb 1)
Terms Provided Online (58.f)
Payment Allocation (53)
Fees for Making Payment (10.e)
Estate Debt Settlement (11.c)
6 Month Requirement for Temp Rates (55.b)
Double Cycle Billing (54)
Partial Grace (54)
Fixed Terminology (16.f)
25% Fee Limit for 1st year (52)
Removal of Penalty after 6 months of pmt (55)
New Account New Disclosures (5.b)

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#1288444 - 11/17/09 10:27 PM Re: Regulation Z - Open End changes - 7-1-10 tyond
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Where can I find the announcement or formal notice that certain sections of the CCAAct have been moved up to 2/22/2010? Is there a statement as to which sections of the reg have been moved up to 2/22/2010? I am trying to determine which sections apply to all open-end credit, not just credit cards.

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#1288765 - 11/18/09 03:47 PM Re: Regulation Z - Open End changes - 7-1-10 Ninky
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check out Federal Register p. 54126, middle and right column.
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#1289597 - 11/19/09 04:15 PM Re: Regulation Z - Open End changes - 7-1-10 Phoenix
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Do the requirements in 226.10 that require setting reasonable cutoff times and crediting of payments that have been bumped up to February, include only credit cards or all open-end credit? (not helocs)

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#1289713 - 11/19/09 05:23 PM Re: Regulation Z - Open End changes - 7-1-10 Ninky
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This is the way I understand it (could be wrong - it is so confusing):

The Credit Card Act applies the safe harbor 5 p.m. cut-off rule to all open-end credit plans and to all forms of pmt, including open-end (homesecured) credit. Proposed 226.10(b)(2)(ii) (payments made in person) would also apply to all open-end credit. This is consistent with current 226.10, which applies to all open-end credit.
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#1289921 - 11/19/09 08:07 PM Re: Regulation Z - Open End changes - 7-1-10 ahou
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And these "proposed" changes in the CCAct for 226.10 have all been moved up to February 22nd?

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#1290016 - 11/19/09 09:35 PM Re: Regulation Z - Open End changes - 7-1-10 Ninky
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Yes.
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#1290107 - 11/19/09 10:23 PM Re: Regulation Z - Open End changes - 7-1-10 ahou
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The final rule makes most of the provisions effective 30 days after publication. This approach allows institutions to receive, with only a minimal delay, a safe harbor for using the model privacy form but allows you to continue to use the alternative language (the old sample clauses) until the end of 2010.

Jan 1, 2012, model disclosures we use now will be removed and paragraph (g) which states the following will be removed (because it will no longer apply):

(g) Sample clauses. Sample clauses illustrating some of the notice content required by this section are included in Appendix B of this part. Use of a sample clause in a privacy notice provided on or before December 31, 2010, to the extent applicable, constitutes compliance with this part.
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#1291367 - 11/23/09 03:38 PM Re: Regulation Z - Open End changes - 7-1-10 ahou
tyond Offline
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I get that 226.10 is for all open end credit, but sec. 226.10(b.3) would be for credit card payments only. In person payments on a credit card account would need to be accepted until close of business, but other open end payments would be until 5:00. So if a bank teller is open until 9:00 pm, then they have to accept payment until 9:00 on the payment due date?? We give a buffer from the due date and the time f/c and late fees assess. If we take a payment at 9:00 on a Sat., it would not process until Monday and due to the buffer no charges would appear on the acct. I assume the transaction date would have to read as the date for Saturday and not Monday.

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#1296896 - 12/02/09 03:17 PM Re: Regulation Z - Open End changes - 7-1-10 tyond
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At a branch - yup. Payment needs to be effective-dated the same day as it is received. Only possible wiggle room is if, after 5pm, no one at the branch can open any deposit account or fund a loan/line - see the 226.2 definition and OSC for business day.
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#1299002 - 12/04/09 05:15 PM Re: Regulation Z - Open End changes - 7-1-10 RR Joker
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I know part of the Credit Card Act also affects open-end credit other than actual "credit card" accounts. We already updated our periodic statements to meet the 21 days.

However,does anyone know if the other provisions also apply (see below) to other types of open-end credit or is it specific to "credit card" accounts only?? We don't issue "credit cards," but do offer lines of credit, overdraft protection, etc.

- Advance Notice of Significant Changes in Account Terms and Rate Increases
- Statement of the Right to Reject Changes in Terms
- Additional Disclosure for National Bank Customers

I wish they would stop issuing new rules affecting lending compliance for a little while so we can have a chance to get on top of everything. I know I could use the break.

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#1310273 - 12/21/09 05:35 PM Re: Regulation Z - Open End changes - 7-1-10 CRCM2010
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The Texas Hill Country
We too offer lines of credit but no credit cards. The way I see it, the following section revisions will apply for us:

226.5(a)(2)(iii)- initial disclosures and use of "penalty apr"
226.5(b)(2)(ii)- Periodic statement 21 days prior to payment due date (but clarified credit card only with recent technical amendment)
226.7(b)(14) - Periodic statement and disclosure of deferred interest or similar program
226.9(c)(2) - Significant change in terms
226.9(g) - Increase in rate due to default or delinquency
226.10(b)(2)(ii) - Payment posting requirements
226.10(d) - Crediting of payments
226.16(f) - misleading terms in advertising
226.16(h) - deferred interest or similar offer - advertising
226.57(c) - marketing to college students

The Fed Register publication from October 21, 2009 re: proposed changes to Reg Z has a pretty nifty little chart about six pages in that breaks down the proposed revisions by type of credit - all open end, all open end not home secured, and credit card only. Really helpful.
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#1310303 - 12/21/09 05:50 PM Re: Regulation Z - Open End changes - 7-1-10 SaaL
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Related to our open end lines of credit (not credit card), my bank is considering increasing our line of credit rates across the board - for existing balances as well as new advances. Of course would provide the required notices (Texas requires 90 days so the change wouldn't be effective until some time in the 2nd quarter) and allow for opt out - and we still need to do some risk assessment. My reading of the proposed changes to reg z would tell me this (increasing rates on existing balances)is and will still be allowed even after the February changes for open-end as long as there's no relationship to a credit card - but I'd like to get some concurrence before we move forward.

Agree? Disagree?
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#1311480 - 12/22/09 05:50 PM Re: Regulation Z - Open End changes - 7-1-10 SaaL
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SaaL,

Thanks for your help and for the additional resource. I appreciate it! Maybe they can lighten up on the amount of changes next year. smile

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#1314406 - 12/29/09 03:42 PM Re: Regulation Z - Open End changes - 7-1-10 SaaL
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The Texas Hill Country
"bump" - anyone?

Related to our open end lines of credit (not credit card), my bank is considering increasing our line of credit rates across the board - for existing balances as well as new advances. Of course would provide the required notices (Texas requires 90 days so the change wouldn't be effective until some time in the 2nd quarter) and allow for opt out - and we still need to do some risk assessment. My reading of the proposed changes to reg z would tell me this (increasing rates on existing balances)is and will still be allowed even after the February changes for open-end as long as there's no relationship to a credit card - but I'd like to get some concurrence before we move forward.

Agree? Disagree?
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#1316722 - 01/04/10 03:15 PM Re: Regulation Z - Open End changes - 7-1-10 SaaL
tyond Offline
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Is no one out there struggling with the Ability to Repay on preapproved credit card offers? Or what about how the single amendment for Pricing Info should look for the website agreement (especially if single agreement serves multiple cards)?

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#1317409 - 01/04/10 10:50 PM Re: Regulation Z - Open End changes - 7-1-10 tyond
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NW IL
Forgive me if this has been answered. Is the gift card section effective 2/22/2010? I neglected to remember about the gift Cards!!!

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#1317685 - 01/05/10 03:57 PM Re: Regulation Z - Open End changes - 7-1-10 QCL
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Far from Calif
I was thinking the gift card provisions are not effective until 8/22/2010. See the Reg E Proposal - comments were due by 12/21/09.
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#1318445 - 01/06/10 05:08 AM Re: Regulation Z - Open End changes - 7-1-10 tyond
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Originally Posted By: tyond
Is no one out there struggling with the Ability to Repay on preapproved credit card offers? Or what about how the single amendment for Pricing Info should look for the website agreement (especially if single agreement serves multiple cards)?


Pre-approved credit card offers usually come with a disclaimer that the offer is not guaranteed if the person does not meet the lender's criteria (Section 615 (d) of the Fair Credit Reporting Act.)

What this means is that you will have to do more work to open these accounts.
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#1318825 - 01/06/10 05:13 PM Re: Regulation Z - Open End changes - 7-1-10 Princess Romeo
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I have read the post and now a little confused. Our bank used to offer HELOCs but has discontinued. We have some on the books still. Are there any requirements coming up in Feb that would affect us? As of now, we don't put any new open ended credit on the books just existing ones are left out there.

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#1327684 - 01/20/10 09:51 PM Re: Regulation Z - Open End changes - 7-1-10 ahkcompliance
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REG Z is always confusing to me, especially open-end rules! We do not issue credit cards but do have lines of credit and HELOC's. Unless I have totally missed the mark...and this is so possible, it doesn't appear that PLC's and HELOC periodic statements will require changes to format. Am I right?
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#1328119 - 01/21/10 05:19 PM Re: Regulation Z - Open End changes - 7-1-10 Still Smiling
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southeast
NO - PLCs DO require new statements and contracts, and you may wish to look at the HELOC proposal for statement changes there, too. 5pm payment processing is required on all types of credit, by 2/22/2010 if not sooner (closed-end already in effect)
Last edited by Phoenix; 01/21/10 05:20 PM.
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#1328229 - 01/21/10 06:42 PM Re: Regulation Z - Open End changes - 7-1-10 Phoenix
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Thanks Phoenix. You mentioned HELOC "proposal for statement changes...exactly which version or proposal are you referring to? Sorry but I am having a hard time pulling all of this together with the different publications with varing dates
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