[b]Ok, I'm having a moment... we have a variable rate HELOC with a rate tied to WSJ prime rate plus margin. Since we disclose this as a VAR. product I think I do not need to send change in terms notice 15 days in advance but am still required to send notice before effective date. Our credit agreement indicates changes in the rate will take effect daily which means ... the rate changes on the 15th for example.. the new rate goes into effect on the 16th. The rate change notice is created on the 16th and mailed out. My problem, it is not sent before the effective date of the change as set-out below..
What is causing my "moment" is this section of the regulation:(c) Change in terms. (1) Rules affecting home-equity plans. (i) Written notice required. For home-equity plans subject to the requirements of §1026.40, whenever any term required to be disclosed under §1026.6(a) is changed or the required minimum periodic payment is increased, the creditor shall mail or deliver written notice of the change to each consumer who may be affected. The notice shall be mailed or delivered at least 15 days prior to the effective date of the change.][i]The 15-day timing requirement does not apply if the change has been agreed to by the consumer; the notice shall be given, however, before the effective date of the change.
Is this a problem?