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#355763 - 05/05/05 01:04 PM ODP plans that are loans
Anonymous
Unregistered

There has been a lot of discussion about ODP plans, but I am wondering who out in BOL land offers a product similar to the below description:

Line of credit tied to checking accounts
3-4 year term
paid in $100 increments
Rate: prime + 3% or 4%

How do you handle them? Are they actively marketed? If the term is up, do you renew the loan? Does Reg Z apply (I think, yes)?

I am unfamiliar with this type of product. Thanks folks.

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Lending Compliance
#355764 - 05/05/05 01:17 PM Re: ODP plans that are loans
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,371
Galveston, TX
Not sure about the 3-4 year term - most of the ones I have seen are evergreen - like a credit card. It is just an open-end line of the credit that is tied to the checking account. It's a very common product throughout the U.S. Reg Z does apply for disclosures and periodic statement requirements.
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#355765 - 05/05/05 01:18 PM Re: ODP plans that are loans
RR Joker Offline
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RR Joker
Joined: Nov 2002
Posts: 20,656
The Swamp
We've had a credit line for OD purposes for many years. It is a revolving account (no maturity), 16%, with payments depending on balance outstanding, with a minimum. They are subject to Reg Z.
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#355766 - 05/05/05 01:19 PM Re: ODP plans that are loans
SMQ, CRCM Offline
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SMQ, CRCM
Joined: Apr 2001
Posts: 4,828
Between the lines
Quote:

There has been a lot of discussion about ODP plans, but I am wondering who out in BOL land offers a product similar to the below description: We do

Line of credit tied to checking accounts
3-4 year term don't remember off hand
paid in $100 increments yes
Rate: prime + 3% or 4% 18%

How do you handle them? Are they actively marketed? No If the term is up, do you renew the loan? depends, new credit decision Does Reg Z apply (I think, yes)? most definitely -- this is treated like any other unsecured, line of credit

I am unfamiliar with this type of product. Thanks folks.

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#355767 - 05/05/05 01:24 PM Re: ODP plans that are loans
Anonymous
Unregistered

You guys are awesome, thanks so much. Sometimes, you just need the ol' bouncing board...

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