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45 Day Advance Notices Before Imposing Penalty?

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Question: 
When the bank imposes 25% penalty rate for 60+ days past due credit card accounts, do they need to send 45-days advance notices to delinquent card holders before imposing penalty rate?
Answer: 

Yes. See Regulation Z section 1026.9(g). The timing requirement is found in .9(g)(2).

First published on 04/28/2014

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