We are in the process of developing a new HELOC product that will be accessable via a Visa Debit Card and/or check. Do we need to provide EFT disclosure ? Since this will be a branded card I understand that we are to play by Visa rules for customer liability and provisional credit etc., I feel like I need more than a point this time, rather a good strong "PUSH" is in order. Thanks Once Again for any assistance (and if it's not Friday, don't tell me)

Yes, you would have to give EFT disclosures if you are issuing a debit card that will access a HELOC. Because the card would access a line of credit, it is also a credit card. You might want to check Visa's regulations to see if this is really permissible. I used to work for a credit card processor a few years ago and at that time Visa had a rule that debit cards could not be tied to lines of credit. As an issuer of Visa cards, you have to abide by Visa's operating rules.

Unless you have an asset account tied to the HELOC for the money to flow through - it's not a debit card. It's a pure credit card and Reg E would never apply.

Also, and this is slightly off the point, but very important to my bank, be sure everyone understands that once you tie the card to the line of credit, whether it is tied to an asset account and only draws on the line when an overdraft occurs in the account, or draws directly from the line of credit, your bank will lose its right of offset against any deposits held at your bank under the special credit card rules of Regulation Z.

OK, the court struck down the CA Credit Card Statute (AB 865), but only as to Federally chartered institutions. As a state chartered institution, with a "credit" card that will access the HELOC it appears we would have to comply with the minimum payment disclosures, providing a toll free # between 8 a.m & 9 p.m. PST, a live person to provide individualized estimates of time & total amount of payments to repay balance etc.,. This is getting more complicated by the day.

So if I have a checking account with a demand deposit loan tied to it and then I add a debit card, I lose my right of offset against any and all deposit accounts?

Mordac - That is a correct statement.