The Regulation Z final rule deadline is October 1, 2011. The final rule requires credit unions ensure they have reasonable procedures in place regarding their periodic statements for most open-end loans are mailed or delivered at least 14 days prior to the date on which the minimum periodic payment must be received in order to avoid being treated as late for any purpose. Payments actually received on or prior to that date are not treated as late for any purpose.
Treating a payment as late for any purpose includes the following:
- increasing the APR as a penalty
- reporting the consumer as delinquent to a credit reporting agency
- assessing a late fee or any other fee
- initiating collection activities such as sending delinquency notices and making collection calls to the member
- terminating benefits
If a credit union has not made the necessary changes so that it is in compliance with the 14-day rule by October 1, 2011, then it cannot treat any account as late for a period of 14 days after the date it mails or delivers the September 2011 periodic statement. The credit union must react the same each month until it has provided the proper notice of change in terms, waited until the end of the notice period, and made the necessary changes.
Afterwards, based upon the reasonable procedures adopted by the credit union, statements are always mailed by the 5th of the month, and no account is treated as late for any reason during the 14-day time period after mailing of the statements.
If you have any questions, please contact Jeanne Couchois at (800) 822-8859 Ext. 9065, or Dana Campbell at (800) 822-8859 Ext. 9068. You may also email us at email@example.com.