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#1667477 - 02/20/12 03:43 PM HELOC - Balance Comp method
notuntermywatch Offline
Gold Star
Joined: Jun 2006
Posts: 392
MN
Just trying to make sure I'm not going crazy -

We can still use the term finance charge when describing our HELOC balance computation method right? For example, this model language is still accurate for HELOCS?

(f) Daily balance method (including current transactions)

We figure [a portion of] the finance charge on your account by applying the periodic rate to the “daily balance” of your account for each day in the billing cycle. To get the “daily balance” we take the beginning balance of your account each day, add any new [purchases/advances/fees], and subtract [any unpaid finance charges and] any payments or credits. This gives us the daily balance.

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#1667509 - 02/20/12 10:29 PM Re: HELOC - Balance Comp method notuntermywatch
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Nothing has changed as far as I am aware.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1921592 - 05/08/14 11:19 PM Re: HELOC - Balance Comp method rlcarey
Tarhe Offline
Diamond Poster
Joined: Nov 2006
Posts: 1,403
California
We are reviewing our statement backer for several open-end (not home secured) products that we offer.

1) We use the daily balance method for our open-end products(which include an overdraft protection line; and a personal unsecured line). If we show the model language(detailed above), is that sufficient? We currently include a couple of extra sentences and would like to delete them. They say: "The interest charged to your account is determined by applying the daily Periodic Rate to the daily balance. Then we add together the periodic interest charges for each day in the billing cycle." Is this extra language required?
2) On the statement backer, can the Balance Computation Method paragraph be generic and refer to "Important Information Regarding Your Account"? We currently duplicate the paragraph for each product - and refer to the name of the product instead of "account" within each paragraph. We'd like to have only one paragraph for all open-end (not home secured) lines. Is that okay?

Thank you!

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#1921601 - 05/08/14 11:59 PM Re: HELOC - Balance Comp method notuntermywatch
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Refer to the model language in the Appendices to Regulation Z.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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