Line of Credit and Visa reviews

Posted By: UTBPMOM

Line of Credit and Visa reviews - 08/28/12 05:51 PM

On an annual basis we review all of our LOC's and Visa accounts (the consumer) to see if they can still handle the credit line. We have done this practice for years. Now the lending department wants to know if they can stop this practice. We are a credit union and apart from being in our board policies, I can not find anything that says we have to to this type of review. HELP any would be appreciated. new to the lending compliance area
Posted By: swiggles

Re: Line of Credit and Visa reviews - 08/28/12 06:23 PM

If the customer is paying as agreed, I don't see the point.....a waste of time and resources in my opinion. What do you do if you determine that (in your opinion), the customer can no longer "handle the line?" Regardless of what you do, it's a way to run off customers. This is just my opinion.

We have our own credit cards and open-ended personal lines of credit. We don't review any of these on an annual basis or otherwise.