Hello,

Is a formal notice or CIT required to remove the maturity date on personal lines of credit under Reg Z? And can it be removed immediately?

We want to eliminate the maturity date on our non-home secured personal lines of credit effective immediately. There are no renewal fees or any other terms that will be impacted. It is not clear to me that we have to provide formal notice in the form of a CIT and if there are any specific timing requirements. This is not under "significant changes" in Reg Z and I am not finding where it may be addressed.

I am grateful for any guidance you can provide.

Thanks.

Talk to your attorney as this is a legal issue. If I had a note that had a maturity date on it in Texas, the ability to collect on that debt expires 6 years after maturity. If you didn't formally modify the contract to eliminate the maturity date, I would wait 6 years and then just walk away from the loan.

Thank you. I have an inquiry submitted to counsel. Any additional advice is welcomed.

Welcome to the BankersOnline Forums, JG!

Thank you John.