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#1998125 - 02/25/15 04:28 PM changing due date on credit card accounts
VRV Offline
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I posted a question about this earlier this week, but I haven't received any replies yet, so I thought I would try posting it again with a little more detail.

I know that the Credit Card Act requires a creditor to keep the due date the same each month. My question is this: Can the creditor change the due date with advance notice to the accountholder (under change-in-terms provisions)? Does it make any difference if this occurs in connection with acquiring the account from another creditor?

Thanks.

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#1998199 - 02/25/15 07:44 PM Re: changing due date on credit card accounts VRV
swiggles Offline
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It's been a long time since I've worked with credit cards, but if your cardholder agreement allows for you to change the monthly due date.....and I'm assuming you mean across the board for all card holders, or perhaps a group of accounts that you're purchasing and want to convert to what your bank does....I think you have to give a 45 day in advance notice. At the bank I worked for that had its own cards, we had a Texas attorney draw up the notice verbiage. You might check your state law also. Texas requires a 90 day in advance notice.
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#1998220 - 02/25/15 08:24 PM Re: changing due date on credit card accounts VRV
VRV Offline
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Thanks, Swiggles! Just to clarify--So you don't think that the Card Act provision that the due date be the same each month prohibits changing the date with proper advance notice? And, yes, it is in connection with a group of purchased accounts being converted to our billing system.

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#1998234 - 02/25/15 08:54 PM Re: changing due date on credit card accounts VRV
swiggles Offline
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I think you can change the due date as long as the change converts to a new due date that is the same every month. I think the rule is to guard against bank's making payments due, for example, every 25 days....or even every 30 days because that method wouldn't result in the same day each month.

Again, it's been a while since I've had anything to do with credit cards.....changed banks about four years ago to a bank with no credit cards at all.

In what section is that rule? I couldn't find it.
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#1998301 - 02/26/15 02:56 AM Re: changing due date on credit card accounts VRV
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It's at 1026.7(b)(11):

"(11) Due date; late payment costs. (i) Except as provided in paragraph (b)(11)(ii) of this section and in accordance with the format requirements in paragraph (b)(13) of this section, for a credit card account under an open-end (not home-secured) consumer credit plan, a card issuer must provide on each periodic statement:

(A) The due date for a payment. The due date disclosed pursuant to this paragraph shall be the same day of the month for each billing cycle."

And the Commentary at 1026.7(b)(11)(7) says:

"7. Change in due date. A creditor may adjust a consumer's due date from time to time provided that the new due date will be the same numerical date each month on an ongoing basis. For example, a creditor may choose to honor a consumer's request to change from a due date that is the 20th of each month to the 5th of each month, or may choose to change a consumer's due date from time to time for operational reasons. See comment 2(a)(4)3 for guidance on transitional billing cycles."

which would appear to mean that a creditor can change the due date if necessary for purchased accounts due to system limitations.

It doesn't appear to me that this change falls under the definition of a "significant change in account terms," though, so I'm struggling with the notification requirements. Does the accountholder have the right to opt out of the change?

Thanks so much for your help. (I was with a bank that didn't have credit cards for many years and recently joined a bank that does, so I'm still learning the credit card provisions.)

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#1998394 - 02/26/15 05:21 PM Re: changing due date on credit card accounts VRV
swiggles Offline
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I think the commentary makes it clear that you can....I don't think there is an opt out provision for this.

I would give the 45 days notice, because depending on the card holder, the change in the monthly due date might be considered significant based on funds that the card holder relies upon for making payment.
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