Good morning,

I am looking for some assistance in understanding if there would be any change to the notice required for a loan on non-accrual within Regulation Z.

Your help is appreciated.

What sort of notice? Placing a loan on non-accrual is an accounting function and does not impact the customer's obligation to pay the loan as contracted.

Thanks for your response!!

I was thinking the same thing, but I was referring to notices such as: Statement of Billing Rights, Notice of Change in Terms, Billing Error Resolution etc. I was assuming that there would be no change in disclosure requirements , because it would not affect the borrowers obligation to repay the loan. I just wanted to be certain. Could you please confirm?

Welcome to BOL Emmett.

The customer has the same obligation to pay. No change on the customer's part. The change is in the loan classification internally. The lender feels like they may not get paid, so accruing interest would only inflate income earned on the general ledger. (Record it as income and charge it off when it's not paid.) Like Randy said, it is an accounting issue, not a customer payment issue.

Thanks Rocky!!