Posted by Anthony Demangone
The effective date for all of the following subsections is February 22, 2010. This is a fun section, as Subsections (A) and (C) apply to credit cards, while Subsection (B) applies to all open-end credit. (That last sentence was to be read with your "sarcasm" voice.)
Late payment deadlines. Section 202 amends the Truth in Lending Act to require credit card issuers to disclose the due date by which a payment must be received to be on time. You'll need to disclose the late fee as well. Note that Regulation Z's July 1, 2010 amendments would have addressed this - but for all open-end lending. (Link to Reg Z, 226.7 as it will look on July 1, 2010. Scroll down to 226.7(b)(11) for the gory details.)
Penalty rates. Subsection (B) of Section 202 requires credit unions to disclose the penalty rate that will apply to the account if a payment is not received by the due date. Now, this section applies to all open-end credit, not just credit cards. Again, Reg Z would have addressed this. Using the link above, See 12 C.F.R. § 226.7(b)(11)(b).
Branch payments. Subsection (C) of Section 202 requires that credit unions credit payments made in person at a branch of the credit union as of the date on which the payment is made. This section only applies to credit cards. In other words, if a member makes a credit card payment at the credit union’s branch on his/her due date – the credit union would not be able to charge a late fee even if the payment is not processed until a later date.
***
OK, enough of the Credit CARD Act for today. How about a little BSA training tip?
I give a number of talks each year. From my talks, I have learned one thing: people love graphs and data. People can say this or that, but a graph, pie chart, bar chart, etc., with hard numbers - well - that tends to legitimize your talk.
Where can you get tons of info for your charts? FinCEN's SAR Activity Review: By The Numbers. FinCEN produces this data compilation twice a year, and they just released the latest version. If you do BSA training or provide BSA data to your board and management team, this document is simply awesome.
I urge you to go into the document, and click on the Section 1 hyperlink. The tabs on the bottom break down SAR filings by type, state, financial charter, etc. Using this data, you can create great charts, PowerPoint slides, etc.
***
Have a great weekend, everyone!
Comments