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#2008202 - 04/15/15 02:51 PM Personal Lines of Credit
peoples Offline
New Poster
Joined: Mar 2006
Posts: 13
I am reviewing a "Personal Line of Credit Change in Terms Agreement" that states:

"Adjustments to the periodic rate and the corresponding APR resulting from changes in the index will take effect daily. “
Today the index is 3.25% per annum and the margin is 1.5% or 4.75%, which is less than the floor of 6%.

Since this line of credit has a floor, which places the index under the control of the bank, per 1026.55(b)(2) I am trying to determine how I can notify the borrower of the increased/changed APR prior to the change becoming effective, if the APR can change daily?
Last edited by peoples; 04/15/15 07:06 PM.
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Lending Compliance
#2008232 - 04/15/15 04:07 PM Re: Personal Lines of Credit peoples
brownbeard Offline
Member
Joined: Nov 2013
Posts: 56
3.25 + 1.5 = 6?

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#2008237 - 04/15/15 04:15 PM Re: Personal Lines of Credit peoples
HRH Okie Banker Offline
Power Poster
Joined: Jan 2003
Posts: 3,070
Oklahoma
Are you saying that it discloses your floor of 6% rather than the sum of 3.25 + 1.5?
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#2008316 - 04/15/15 07:09 PM Re: Personal Lines of Credit peoples
peoples Offline
New Poster
Joined: Mar 2006
Posts: 13
Yes the floor is 6% and the index + margin is 4.75%.

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