Sending Periodic Statement

Posted By: Denny

Sending Periodic Statement - 11/03/06 11:51 AM

I was told that we are required to send a periodic statment on an open-end credit line at least quarterly even if there is no activity and a zero balance on the account during the entire quarter. I cannot find where this is required by Reg. Z. We do use the periodic statement to disclose the "short version" of the account holders billing rights
Posted By: Dan Persfull

Re: Sending Periodic Statement - 11/03/06 02:20 PM

Reg. Z only requires a periodic statement if there is "activity" on the accouunt. If there is a zero balance and no credit or debit adjustments to the account during the billing cycle a periodic statement is not required under Reg. Z. You would have to insure that these account holders receive the billing rights disclosure at least annually.