Frequently Asked Questions
Loan Due-Date Changes

Effective October 1, 2011, there are new “advance notice of due date requirements” for all open-end loans (A,B).
Under these rules, the Credit Union is required to adopt reasonable procedures to ensure:

  • Periodic statements are mailed or delivered at least 14 days before the due date (provided on the statement) so the payment isn’t considered late; and
  • Payments received on or before that date aren’t treated as late for any purpose, such as increasing the annual percentage rate as a penalty, reporting the consumer as delinquent to a credit reporting agency, or assessing a late fee.

When is my new loan due date?

All due dates on open-end loans are now set to the 15th of the month or later.  

 

My loans are on payroll deduction/automatic transfer/paid through direct deposit.  How will this be affected?

If your loans are automatically paid through payroll deduction, direct deposit, or an automated transfer, you do not need to do anything.  Your payments will continue as always, whether they are set up as weekly, bi-weekly, twice a month, or monthly.

 

Will my payment amount remain the same?

Not necessarily.  If your payment frequency was already set to monthly, then your payment amount remains the same.  However, if your payment frequency was semi-monthly, bi-weekly, or weekly, then we adjusted the payment amount to reflect a monthly payment frequency. For example: if you pay your loan semi-monthly (twice a month) and your deduction amount is $150, we converted your monthly payment to $300. As mentioned in #2, if your loan is setup for automatic payments, we are NOT changing the amount you have deducted. So, in the above example you would still pay us $150 twice a month which equals the $300 monthly amount. We will be monitoring the accounts closely to ensure there are no problems.  Our goal in this is to comply with the new regulation while making it as easy for you as possible. 

 

I mail a check each month to pay my loan.  How will I be affected? 

There will be no change.  You may continue to send your check monthly to pay your loan.

 

I want to keep paying my loan on the date I already have.  That fits into my budget.  Do I have to change?

No.  You may continue to pay your loan on the same day as before, as long as you make your monthly payment by the due date.

 

I still have coupons with my original due date.  Can I use them?

Yes. 

 

Do I have to sign new loan papers to make this change take effect?

No.  That’s one of the advantages of open-end lending.  Loan modifications are easily made without additional paperwork requirements.

 

If you have any other questions or wish to discuss this further, please contact the Credit Union:

 

  1. Credit card due dates continue to fall under the established 21 Day Rule.
  2. Stretch Pay, Share Secured, Certificate Secured, Home Improvement, Home Equity and Mortgage loans are not open-end loans, and therefore do not have a 14-day requirement.