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#1227876 - 08/05/09 08:30 PM 45 day Advance Notice - Credit Card Act
diputs
Unregistered

Does anyone have model language for the 45 day notice that they would share?

Thank you

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#1227879 - 08/05/09 08:34 PM Re: 45 day Advance Notice - Credit Card Act
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,898
Galveston, TX
Model language for what 45 day notice?
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1227916 - 08/05/09 09:07 PM Re: 45 day Advance Notice - Credit Card Act rlcarey
diputs
Unregistered

The provision of the rule that requires a creditor of any “credit card account under an open-end consumer credit plan” covered by TILA to provide to each affected consumer written notice of any “significant change” in the terms, an increase in the minimum periodic payment, or an increase in rate due to
default, delinquency or penalty, at least 45 days prior to the effective date of the change or increase.
In addition, the Act and Rule give consumers a right to reject the change before the effective date of the change,
unless the account is more than 60 days delinquent or the change is an increase in minimum period payment amount. We are looking for a consistent format that other banks might be considering where the above applicable changes may be conveyed and where a customer "rejection" could be recorded.

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#1227929 - 08/05/09 09:36 PM Re: 45 day Advance Notice - Credit Card Act
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,898
Galveston, TX
I think that it will all depend on the specific terms that you are going to change. I doubt that a bank is going to develop a standard change notice that covers all the possibilities with check off boxes. Modifying specific contract language within the bank's specific loan contract may also determine some of the required wording. All contractual change of terms of this type should receive review by the bank's legal counsel.
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#1228030 - 08/06/09 12:39 PM Re: 45 day Advance Notice - Credit Card Act rlcarey
Still Smiling Offline
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Joined: Nov 2007
Posts: 767
Question please, I interpreted the 45 day notice requirement to apply only to credit card accounts, not any other type of open end credit plan. Is this right?
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#1228082 - 08/06/09 01:39 PM Re: 45 day Advance Notice - Credit Card Act Still Smiling
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,898
Galveston, TX
That is correct. Every other open-end account type remains at 15 days.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1228097 - 08/06/09 01:57 PM Re: 45 day Advance Notice - Credit Card Act rlcarey
diputs
Unregistered

OH....
I thought the 45 days applied to any opened credit including credit cards.
If it only applies to credit cards and not open-end line of credit that are NOT credit card account, that makes a big difference.
I was told by a consultant that the 45 day notice applied to overdraft accessable via ATM card.
This is what the consultant said:

"Please note that I have confirmed with the Fed that the 45-day notice requirement will apply to overdraft lines of credit (non-HELOC) that are accessible by ATM or debit card."

Is this correct? If so, would that mean that it applies beyond credit card accounts or does that mean that our OD sweep is considered a credit card account...????
I am confused... Please HELP!

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#1228241 - 08/06/09 03:31 PM Re: 45 day Advance Notice - Credit Card Act
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,898
Galveston, TX
Your consultant is probably techically correct, as debit cards that indirectly access overdraft lines of credit are techincally credit cards under Regulation Z. However, if someone can find a specific definition of "credit card account",I would apprecaite some guidance as I can't find one even though this term is consistently used throughout the regulations.

It really is a moot point as this changes to 45 days on all open-end credit (except HELOCs) on July 1 2010 anyway.

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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1228302 - 08/06/09 04:22 PM Re: 45 day Advance Notice - Credit Card Act rlcarey
zitch70 Offline
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Joined: Apr 2001
Posts: 331
Edinburg, Texas
We offer credit cards with a max rate of 18% (Texas based). Some cards have lower rate of 12 % but if late 60 days we will max out their rate. I want to know if our interpretation of the 45 day rule can be applied this way?

We will send out a letter to all credit card holders with a rate less than 18% stating "should their account become delinquent 60 + days the rate will change to 18%". This would be at "least 45 days in advance" of a change say in two years.

Is this too broad or loose interpretation?

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#1228358 - 08/06/09 04:57 PM Re: 45 day Advance Notice - Credit Card Act zitch70
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,898
Galveston, TX
Is this too broad or loose interpretation?

IMHO - yes, because you are just reiteracting what is already in your contract (I hope).
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1392122 - 05/17/10 07:03 PM Re: 45 day Advance Notice - Credit Card Act rlcarey
wanted Offline
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United States
Bank has an open end (non real estate) personal line of credit, not accessed by a credit card. This a a variable rate tied to WSJ prime with a floor on the rate.
Will the 45 day advance notice for an rate increase be required?

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