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#2178251 - 05/15/18 09:13 PM Open End LOC with Maturity Date and Without
2old2care Offline
Platinum Poster
Joined: Oct 2006
Posts: 710
PA
Issue:
We have two types of consumer unsecured LOC accounts on our system. One has a fixed maturity date. The other does not.
Currently, the customers with the maturity date, must come to the bank and re-apply for the loan. This requires standard underwriting and is inconvenient to the customer and not cost effective for the bank.

Our note currently has the following language:

"You agree that we may renew or extend the period during which you may obtain credit advances or make payments. You further agree that we may renew or extend your Credit Line Account." We would allow for an opt-out, unless this is an unnecessary step.

We would like to do a system maintenance, changing the LOC accounts with a maturity date, mirroring the other product with no maturity date.


Letters would be sent to the customers a minimum of 45 days before the change.

Looking for any input on this proposal. Thank you for your time.

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Lending Compliance
#2178257 - 05/15/18 09:40 PM Re: Open End LOC with Maturity Date and Without 2old2care
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,617
Galveston, TX
Purely a contractual issue and not a regulatory one.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2178260 - 05/15/18 09:49 PM Re: Open End LOC with Maturity Date and Without 2old2care
2old2care Offline
Platinum Poster
Joined: Oct 2006
Posts: 710
PA
Thank you!

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