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#2253321 - 05/01/21 10:38 AM HELOC ATM Access
terpsfan Offline
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Does allowing a customer to transfer money from a heloc using the atm make the heloc a credit card? If not what if we allow them to withdraw an advance from the atm?

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#2253322 - 05/01/21 12:20 PM Re: HELOC ATM Access terpsfan
rlcarey Offline
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(15)(i) Credit card means any card, plate, or other single credit device that may be used from time to time to obtain credit. The term credit card includes a hybrid prepaid-credit card as defined in § 1026.61.

(ii) Credit card account under an open-end (not home-secured) consumer credit plan means any open-end credit account that is accessed by a credit card, except:

(A) A home-equity plan subject to the requirements of § 1026.40 that is accessed by a credit card;


I also assume this ATM card is tied to a deposit account and only access to the HELOC occurs at the ATM - right?
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#2253332 - 05/03/21 11:15 AM Re: HELOC ATM Access terpsfan
terpsfan Offline
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Correct the only access would be at the ATM.

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#2253412 - 05/04/21 03:08 PM Re: HELOC ATM Access terpsfan
terpsfan Offline
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Since it cannot be used for purchases would it be excluded under the following?
C. An account number that accesses a credit account, unless the account number can access an open-end line of credit to purchase goods or services or as provided in § 1026.61 with respect to a hybrid prepaid-credit card. For example, if a creditor provides a consumer with an open-end line of credit that can be accessed by an account number in order to transfer funds into another account (such as an asset account with the same creditor), the account number is not a credit card for purposes of § 1026.2(a)(15)(i). However, if the account number can also access the line of credit to purchase goods or services (such as an account number that can be used to purchase goods or services on the Internet), the account number is a credit card for purposes of § 1026.2(a)(15)(i), regardless of whether the creditor treats such transactions as purchases, cash advances, or some other type of transaction. Furthermore, if the line of credit can also be accessed by a card (such as a debit card), that card is a credit card for purposes of § 1026.2(a)(15)(i).

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#2253416 - 05/04/21 03:19 PM Re: HELOC ATM Access terpsfan
rlcarey Offline
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No - it would be excluded under the citation I provided earlier.
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#2253435 - 05/04/21 05:05 PM Re: HELOC ATM Access terpsfan
terpsfan Offline
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I know it is not covered under 15(ii) but what excludes it form 15(i)?

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#2253436 - 05/04/21 05:17 PM Re: HELOC ATM Access terpsfan
rlcarey Offline
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It has to meet both i and ii

Comment 4. Credit card account under an open-end (not home-secured) consumer credit plan.

i. An open-end consumer credit account is a credit card account under an open-end (not home-secured) consumer credit plan for purposes of § 1026.2(a)(15)(ii) if:

A. The account is accessed by a credit card, as defined in § 1026.2(a)(15)(i); and

B. The account is not excluded under § 1026.2(a)(15)(ii)(A) through (C).
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#2253464 - 05/04/21 09:38 PM Re: HELOC ATM Access terpsfan
terpsfan Offline
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Ok I thought 15(i), 15(ii), 15(iii), and 15(iv) were separate definitions.

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#2255819 - 06/23/21 06:21 PM Re: HELOC ATM Access terpsfan
terpsfan Offline
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Sorry start a old tread back up but is there any scenario where a HELOC can be considered a credit card?

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#2255882 - 06/24/21 12:09 PM Re: HELOC ATM Access terpsfan
terpsfan Offline
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I guess my main question is there any situation where 1026.12—Special credit card provisions would apply to a debit card due to having access to a HELOC?

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#2255885 - 06/24/21 12:57 PM Re: HELOC ATM Access terpsfan
rlcarey Offline
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No - but all of 1026.13 would apply. Having a "debit card" tied directly to a HELOC is still sort of an oxymoron. Unless the rules have changed, that would violate the card issuer rules.
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#2255892 - 06/24/21 02:20 PM Re: HELOC ATM Access terpsfan
terpsfan Offline
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The access would be limited to the ATM where they would be able to transfer funds from their HELOC to their DDA.

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#2255900 - 06/24/21 03:48 PM Re: HELOC ATM Access terpsfan
rlcarey Offline
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Then it would not be a credit card and just a HELOC access device as an ATM card only.
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#2255910 - 06/24/21 05:12 PM Re: HELOC ATM Access terpsfan
terpsfan Offline
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Would it be just an access device if accessed a unsecured consumer LOC at the ATM?

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#2255916 - 06/24/21 06:18 PM Re: HELOC ATM Access terpsfan
rlcarey Offline
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An ATM only card would be like an account number:

C. An account number that accesses a credit account, unless the account number can access an open-end line of credit to purchase goods or services or as provided in § 1026.61 with respect to a hybrid prepaid-credit card. For example, if a creditor provides a consumer with an open-end line of credit that can be accessed by an account number in order to transfer funds into another account (such as an asset account with the same creditor), the account number is not a credit card for purposes of § 1026.2(a)(15)(i). However, if the account number can also access the line of credit to purchase goods or services (such as an account number that can be used to purchase goods or services on the Internet), the account number is a credit card for purposes of § 1026.2(a)(15)(i), regardless of whether the creditor treats such transactions as purchases, cash advances, or some other type of transaction. Furthermore, if the line of credit can also be accessed by a card (such as a debit card), that card is a credit card for purposes of § 1026.2(a)(15)(i).
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