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#1398802 - 06/02/10 08:49 PM Do we have to send a statement?
Many Hats Offline
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Joined: May 2008
Posts: 915
Orlando, FL
We have three HELOC's in which we have done partial write-downs. This was while we were using a core processing system that supports shadow accounting. We are no on a new core processing system that does not have shadow accounting.

So, the first statement from the new system shows a much lower balance due to the write-downs.

Can we simply turn off their notices entirely, or since it is a comsumer product covered under Reg Z, will we have to maually create a bill each month?

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#1398988 - 06/03/10 01:10 PM Re: Do we have to send a statement? Many Hats
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,482
Bloomington, IN
I assume you have suspended the credit privileges on these account and that's why you are making this inquiry. If there is debit or credit activity on the account during the billing cycle you must provide a periodic statement. I'm not aware of any exception to exempt the periodic statement requirement because the credit privileges have been suspended.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#1399181 - 06/03/10 04:22 PM Re: Do we have to send a statement? Dan Persfull
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Joined: May 2008
Posts: 915
Orlando, FL
The only "activity" has been late charges being assessed.

Does this mean that we need to provide a statement?

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#1399844 - 06/04/10 05:58 PM Re: Do we have to send a statement? Many Hats
Many Hats Offline
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Joined: May 2008
Posts: 915
Orlando, FL
bump please

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#1399869 - 06/04/10 06:35 PM Re: Do we have to send a statement? Many Hats
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,482
Bloomington, IN
A posted late charge or finance charge would be a debit transaction thus making the account subject to the periodic statement requirements of 226.7.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#1400055 - 06/04/10 09:29 PM Re: Do we have to send a statement? Dan Persfull
Many Hats Offline
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Joined: May 2008
Posts: 915
Orlando, FL
I am being told that since they have a balance, we would need to send a statement, even if we turn off the late charges.

Is this true?

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#1400073 - 06/04/10 09:42 PM Re: Do we have to send a statement? Many Hats
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,482
Bloomington, IN
Yes. I see I forgot to include that little tidbit in my previous comments. If the account has an outstanding balance, a credit transaction or a debit transaction during the billing cycle a periodic statement must be furnished.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#1402236 - 06/10/10 09:09 PM Re: Do we have to send a statement? Dan Persfull
Many Hats Offline
Platinum Poster
Joined: May 2008
Posts: 915
Orlando, FL
Since we do not have shadow accounting with our new core system, we are having a difficult time trying to figure out we are going to create bills manually each month.

Has anyone else ever had to do this? If so, if anyone has any spreadsheets or notes on the steps to take, that would be helpful.

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