General Disclosure Requirements
General Disclosure RequirementsAll disclosures must be:“Clear and conspicuous”WrittenIn a form the member can keep, except for: Credit and charge card applications and solicitationsHome-equity plan disclosuresThe alternative summary billing-rights statement Credit and charge card renewal disclosuresUnknown InformationAll disclosures must reflect the terms of the legal obligation between the parties. If any information necessary for accurate disclosure is unknown at the time the disclosures are made, the credit union must: Make the required disclosure based on the best information available at the time.State clearly that the disclosure is an estimate.Multiple ApplicantsThe credit union may provide disclosures to any of the individuals who are primarily liable on the account. Separate disclosures and rescission notices must be given to each member who has a right to rescind. Specific FormatsSpecific formatting rules apply to many open-end credit disclosures:Credit and charge card applications and solicitations.Disclosures for home-equity plans must precede other disclosures and must be contain specific elements.Account-opening disclosures for non-HELOC accounts must be provided in a tabular format.Disclosures provided on periodic statements must be grouped together in a specific manner.Disclosures provided on periodic statements for non-HELOC accounts must follow certain formatting requirements.Disclosures accompanying checks that access a credit card account must be provided in a tabular format.Disclosures provided in a change-in-terms notice for non-HELOC accounts must be provided in a tabular format.Disclosures provided when a rate is increased due to delinquency, default or as a penalty on non-HELOC accounts must be provided in a tabular format.Annual Percentage RateFor most open-end disclosures, the APR is determined by multiplying:The periodic rate that can be used to compute the finance charge BYThe number of periods in the year. Periodic StatementsThere are various methods of determining the APR that applies to periodic statements. The credit union should refer to Section 226.14(c) of Regulation Z for guidance.Accuracy RequirementAn APR disclosed by a credit union is considered accurate if the disclosed rate is not more than 1/8 of a percentage point above or below the actual APR.Oral DisclosuresWhen orally responding to member inquiries concerning the cost of credit, the only rate that may be stated is the “Annual Percentage Rate” or “APR.”ExceptionsThe credit union may answer inquiries about open-end credit by stating the periodic rate, or rates, along with the annual percentage rate.If the annual percentage rate cannot be determined in advance, the rate for a sample transaction must be given with other cost information for the member’s specific transaction.Account Opening Disclosures New as of July 1, 2010The following rules apply to non-HELOC accounts onlyDisclosures are required to be provided before the first transaction under the planTableA tabular format with specific headings, content and formatting is required for certain disclosures.BoldingThe following terms in the table must be bolded:Annual Percentage Rates (the APR for purchases must also be in 16 pt. font)The following fees:Issuance or availabilityTransaction chargesCash advanceLate paymentOver-the-limitBalance transferReturned paymentDo Not BoldDo not bold the following:Fixed finance chargesMinimum interest chargesAny periodic charges that are not annualizedIn-Table DisclosuresDisclose the following terms and information within the table”Annual Percentage RatesDisclose each periodic rate that may be used to compute the finance charge on an outstanding balance for purchases, cash advances, or balance transfers, expressed as an annual percentage rate. When more than one rate applies for a category of transactions, disclose the range of balances to which each rate is applicable. Variable RatesFor variable rates, disclose the fact that the rate may vary and how the rate is determined by identifying the type of index or formula that is used in setting the rate. Do not disclose the value of the index and the amount of the margin in the table. Do not disclose limitations on rate increases or decreases in the table.Introductory RatesIf the initial rate is an introductory rate, disclose the rate that would otherwise apply to the account. You may disclose in the table the introductory rate along with the rate that would otherwise apply to the account if you also disclose the time period during which the introductory rate will remain in effect.You must use the term “introductory” or “intro” in immediate proximity to the introductory rateDisclosure of the introductory rate is required for credit cards.Premium RatesIf the initial rate is temporary and is higher than the rate that will apply after the temporary rate expires, you must disclose the premium initial rate.The premium initial rate for purchases must be in at least 16-point type. You may disclose in the table the rate that will apply after the premium initial rate expires if you also disclose the time period during which the premium initial rate will remain in effect. If you disclose in the table the rate that will apply after the premium initial rate for purchases expires, that rate also must be in at least 16- point type.Disclosure of the rate that will apply after the premium initial rate expires is required for credit cards.Penalty RatesIf a rate may increase as a penalty for one or more events specified in the account agreement, you must disclose:The increased rate that may apply.A brief description of the event or events that may result in the increased rate.A brief description of how long the increased rate will remain in effect. If more than one penalty rate may apply, you may disclose the highest rate that could apply (instead of disclosing the specific rates or the range of rates that could apply.)Fees for Issuance or AvailabilityYou must disclose any annual or other periodic fee that may be imposed for the issuance or availability of an open-end planInclude any fee based on account activity or inactivity; how frequently it will be imposed; and the annualized amount of the fee.For any non-periodic fees that relates to opening the plan, you must disclose that the fee is a one-time fee.Fixed Finance Charge or Minimum Interest ChargeDisclose any fixed finance charge and a brief description of the charge. Disclose any minimum interest charge if it exceeds $1.00, that could be imposed during a billing cycle, and a brief description of the charge. Transaction ChargesDisclose any transaction charge imposed for purchases.Grace PeriodDisclose the date by which or the period within which any credit extended may be repaid without incurring a finance charge and any conditions on the availability of the grace period. If no grace period is provided, you must disclose that fact.If the length of the grace period varies, you may disclose the range of days, the minimum number of days, or the average number of the days in the grace period, if the disclosure is identified as a range, minimum, or average. You must use the phrase “How to Avoid Paying Interest” as the heading for the row describing the grace period if the grace period applies to all features of the account.Use the phrase “Paying Interest” on the heading row if a grace period is not offered on all features of the account.FeesDisclose the following fees:Cash advance feesLate payment feesOver-the-limit feesBalance transfer fees Returned-payment feesRequired Insurance, Debt Cancellation or Debt Suspension CoverageDisclose any fees for required insuranceInclude a cross reference to any additional information provided about the insurance or coverage, as applicable.Available CreditThis disclosure is required if you require fees for the issuance or availability of credit and/or require a security deposit, and the total amount of the required fees and/or security deposit that will be imposed and charged to the account when the account is opened is 15 percent or more of the minimum credit limit for the plan. When this is the case you must provide the following disclosures:The available credit remaining after these fees or security deposit are debited to the account. The fact that the consumer has the right to reject the plan and not be obligated to pay the fees or any other fee or charges until the consumer has used the account or made a payment on the account after receiving a periodic statement. These disclosures are not required if fees or security deposits are not debited to the account.Web site ReferenceFor credit card accounts, you must include a reference to the Web site established by the Federal Reserve Board and a statement that consumers may obtain on the Web site information about shopping for and using credit cards.Directly Below the TableDisclose the following directly below the table.Introductory RatesIf you disclose an introductory rate, you must disclose:The circumstances under which the introductory rate may be revoked.The rate that will apply after the introductory rate is revoked.Employee Preferential RatesIf you disclose a preferential annual percentage rate for employees (or others with similar affiliation) you must briefly disclose:The circumstances under which such preferential rate may be revoked.The rate that will apply after such preferential rate is revoked.Balance Computation MethodDisclose the name of the balance computation method that is used to determine the balance on which the finance charge is computed for each feature along with a statement that an explanation of the method(s) is provided with the account-opening disclosures. Billing Error Rights ReferenceDisclose a statement that information about consumers' right to dispute transactions is included in the account-opening disclosures.Disclosures in the Body of the Account AgreementDisclose the following in the body of the account agreement:Charges Imposed as Part of the PlanDisclose any charges imposed as part of the plan that are not already disclosed in the table.Disclose the amount of the charge or an explanation of how the charge is determined. For finance charges, also include:A statement of when the charge begins to accrueAn explanation of whether or not any time period exists within which any credit that has been extended may be repaid without incurring the charge. Charges imposed as part of the plan include:Finance chargesCharges resulting from the consumer's failure to use the plan as agreed, except amounts payable for collection activity after default, attorney's fees whether or not automatically imposed, and post-judgment interest rates permitted by law.Taxes imposed on the credit transaction by a state or other governmental body, such as documentary stamp taxes on cash advances.Charges for which the payment, or nonpayment, affect the consumer's access to the plan, the duration of the plan, the amount of credit extended, the period for which credit is extended, or the timing or method of billing or payment.Charges imposed for terminating a plan.Charges for voluntary credit insurance, debt cancellation or debt suspension.Balance Computation MethodDisclose an explanation of the method used to determine the balance to which the rate is applied. (Model language)Variable-rate AccountsDisclose the following for variable rate accounts tied to an index:The fact that the annual percentage rate may increase.How the rate is determined, including the margin.The circumstances under which the rate may increase.The frequency with which the rate may increase.Any limitation on the amount the rate may change.The effect(s) of an increase.For variable rate accounts not tied to increases in an index or formula, disclose the following:The initial rate (expressed as a periodic rate and a corresponding annual percentage rate)How long the initial rate will remain in effect and the specific events that cause the initial rate to change.The rate (expressed as a periodic rate and a corresponding annual percentage rate) that will apply when the initial rate is no longer in effect and any limitation on the time period the new rate will remain in effect.The balances to which the new rate will apply.The balances to which the current rate at the time of the change will apply.Voluntary Credit Insurance, Debt Cancellation or Debt SuspensionProvide required disclosures for voluntary credit insurance, debt cancellation or debt suspension.Security InterestsDisclose the fact that the creditor has or will acquire a security interest in the property purchased under the plan, or in other property identified by item or type.Statement of Billing RightsDisclose a statement that outlines the consumer's rights and the creditor's responsibilities for billing errors. (Model Notice)Periodic StatementsGeneral RulesThe following rules apply to non-HELOC accountsYou must provide a periodic statement to members with open-end credit for each billing cycle during which a finance charge is imposed, or an account has a debit or credit balance of more than $1.A “billing cycle” is the interval between the days or dates of regular periodic statements. These intervals must be equal, with a maximum interval of one calendar quarter. Intervals are considered equal if the number of days in a cycle does not vary by more than four days from the regular day or date of the periodic statement.TimingAccount TypeTimingRestrictionsCredit CardsMailed or delivered at least 21 days prior to the payment due date disclosed on the statementIssuer must adopt “reasonable procedures” to insure prompt deliveryCannot treat any payment received within 21 days after mailing or delivery of the periodic statement as lateDue dates must be the same numerical date every month (or the last day of the month)The due date may be adjusted at the consumer’s requestOpen-end plans with a grace period (including credit cards)Mailed or delivered at least 21 days prior to the date on which a grace period expiresCreditor must adopt “reasonable procedures” to insure prompt deliveryCannot impose finance charges as a result of the loss of the grace period if a payment that satisfies the terms of the grace period is received within 21 days after mailing or delivery of the periodic statement.Open-end plans without a grace periodMailed or delivered at least 14 days prior to the due date Cannot treat any payment received within 14 days after mailing or delivery of the periodic statement as late.ContentPrevious BalanceDisclose the account balance outstanding at the beginning of the billing cycle.Identification of TransactionsThe following information must be provided for each transaction involving the sale of property or services:The transaction amountThe transaction dateThe merchant's nameThe city and state or foreign country where the transaction took place. (You may omit the address or provide any suitable designation that helps the consumer to identify the transaction when the transaction took place at a location that is not fixed; took place in the consumer's home; or was a mail, Internet, or telephone order.)The following information must be provided for each non-sale transaction:A brief identification of the transactionThe amount of the transactionOne of the following dates: The date of the transactionThe date the transaction was debited to the consumer’s account CreditsDisclose any credit to the account during the billing cycle, including:The credit amount The date of crediting. (The date need not be provided if a delay in crediting does not result in any finance or other charge.)Periodic RatesDisclose:Each periodic rate that may be used to compute the interest charge expressed as an annual percentage rate and using the term “Annual Percentage Rate.”The range of balances to which the periodic rate is applicable. The types of transactions to which the periodic rate is applicable.The fact that the annual percentage rate may vary if the rate is variable.Promotional rates (only need to be disclosed in periods in which the offered rate is actually applied.)Balance on Which the Finance Charge is ComputedDisclose:The amount of the balance to which a periodic rate was applied AND An explanation of how that balance was determined*Use the term “Balance Subject to Interest Rate.” If you determine a subject balance without first deducting all credits and payments made during the billing cycle, you must:Disclose that fact, AND The amount of the credits and payments*Note: As an alternative to providing an explanation of how the balance was determined, you may: Identify the name of the balance computation method (if you use a balance computations method outlined in Reg Z) AND Provide a toll-free telephone number where members can call for more information.Charges ImposedDisclose the amounts of any charges imposed as part of a plan in the following manner:Grouped together.In proximity to the list of transactions.Substantially similar to Sample G–18(A) in Appendix G.Disclose finance charges attributable to periodic interest rates, in the following manner:Using the term “Interest Charge”Grouped together under the heading “Interest Charged”Itemized and totaled by type of transactionProvide a total of finance charges using the term “Total Interest” Disclose any other charges imposed as part of the plan in the following manner: Grouped together under the heading “Fees”Identified by the feature or type, and itemizedProvide a total of charges, using the term “Fees”Change-in-terms and Increased Penalty Rate SummaryIf you provide a change-in-terms notice or a rate increase notice on or with the periodic statement, you must follow specific formatting rules. (See Change-in-Terms section).Grace PeriodDisclose the date by which or the time period within which the new balance or any portion of the new balance must be paid to avoid additional finance charges. Billing Errors AddressDisclose the address to be used for notice of billing errors. (Alternatively, the address may be provided on the billing rights statement).Closing Date of Billing Cycle and New BalanceDisclose:The closing date of the billing cycleThe account balance outstanding on that dateThe account balance closely proximate to the minimum payment dueDeferred Interest or Similar TransactionsFor accounts with an outstanding balance subject to a deferred interest or similar program, you must: Disclose the date by which that outstanding balance must be paid in full in order to avoid the obligation to pay finance charges.Make the disclosure on the front of any page of each periodic statement issued during the deferred interest period.Make the disclosure using a phrase substantial similar to the following, “You must pay your promotional balance in full by [date] to avoid paying accrued interest charges.”Statement of Billing RightsAnnual StatementYou must mail or deliver a billing rights statement to members at least once per calendar year.You can mail the statement at intervals of not less than 6 months nor more than 18 months.The statement has to be “substantially similar” to the examples found in Appendix G.Alternative Summary StatementIn lieu of sending an annual statement, you may mail or deliver, on or with each periodic statement, a statement substantially similar to Model Form G-4 or Model Form G-4(A) in appendix G.Supplemental Credit Access Devices and Additional FeaturesYou are required to provide additional disclosures when you provide members with supplemental accesses devices (for example, checks) or additional credit features.Account TypeDevice or FeatureTime FrameOffer TypeRequired DisclosuresAnyAllWithin 30 days of member receipt of account opening disclosuresSame terms as those previously disclosedNoneAnyAll, except credit card checksMore than 30 days after member receipt of account opening disclosuresSame terms as those previously disclosedNotification that the use of the device or feature is for use in obtaining credit under the terms previously disclosedAnyAll, except credit card checksAny timeDifferent than terms previously disclosedAn explanation of all finance charges that differ from the original termsCredit CardChecksRequired if the checks are mailed more than 30 days after member receipt of account opening disclosures or if the terms are different than those previously disclosedSimilar to Sample G-19 in appendix GDisclosed on the front page of the checksChange in TermsThe following rules apply only to non-HELOC accounts.TimingSignificant TermsA credit union must provide members with a written notice of a change in significant credit terms at least 45 days prior to the effective date of the change.A “significant credit term” includes:Any change to the terms required to be disclosed in the account opening table disclosure.An increase in the required minimum periodic payment.The acquisition of a security interest.Other Account TermsIf you increase or introduce any charge not required to be disclosed in the account- opening table, you may either provide:A 45-day prior notice of change in terms.A notice of the amount of the charge before a member agrees to or becomes obligated to pay the charge.Member Agreement to ChangeA notice of change in terms is required, but it may be mailed or delivered as late as the effective date of the change if the consumer agrees to the particular change. The exception to the 45-day notification rule applies only when: A consumer substitutes collateralThe creditor can advance additional credit only if a change relatively unique to that consumer is made (such as the consumer’s providing additional security or paying an increased minimum payment amount.) The following are not considered agreements between the consumer and the creditor: The consumer’s general acceptance of the creditor’s contract reservation of the right to change termsThe consumer’s use of the account The consumer’s acceptance of a unilateral term change that is not particular to that consumer, but rather is of general applicability to consumers with that type of accountThe consumer’s request to reopen a closed account or to upgrade an existing account to another account offered by the creditor with different credit or other features. Change in Terms ContentIf a credit union changes a term required to be disclosed in the account-opening table, it must provide the following information on the notice:A statement that changes are being made to the account.A summary of the changes made to the terms.For non-credit card accounts: A statement indicating that the member has the right to opt out of the changes, if applicable and a reference to additional information.The date the changes will become effective.If applicable, a statement that the member may find additional information about the summarized changes and other changes to the account, in the notice.If the credit union is changing a rate on the account, other than a penalty rate, a statement that if a penalty rate currently applies to the member’s account, the new rate will not apply to the member’s account until the account is no longer subject to the penalty rate.If the APR is being changed, the balances to which the new rate will be applied and if applicable, a statement identifying the balances to which the current rate will continue to apply.Formatting RequirementsThe “Summary of the changes” must be in a tabular format with headings and format substantially similar to the account-opening table.Provided with a Periodic StatementWhen a change-in-terms notice is provided on the periodic statement, the “Summary of the changes” must be located on the front of any page of the statement.Provided Separate from the Periodic StatementWhen a change-in-terms notice is provided separately from the periodic statement, the “Summary of the changes” must be disclosed either: On the front of the first page of the noticeSegregated on a separate page of the notice from other information provided with the notice. The “Summary of the changes” may be on more than one page and may use both the front and reverse sides, so long as the table begins on the front of the first page of the notice and there is a reference on the first page indicating that the table continues on the following page.Change-in-terms Notice Not RequiredA credit union is not required to provide a notice of change-in-terms when the change involves:Charges for documentary evidenceA reduction of any component of a finance charge or other chargeSuspension of future credit privileges or termination of an account or planAn agreement involving a court proceedingAn extension of the grace periodThe change is applicable only to checks that access a credit card account and the changed terms are disclosed on or with the checks as requiredAn increase in an annual percentage rate or fee upon the expiration of a specified period of time, provided that:Prior to commencement of that period, the creditor disclosed in writing to the consumer, in a clear and conspicuous manner, the length of the period and the annual percentage rate or fee that would apply after expiration of the periodThe disclosure of the length of the period and the annual percentage rate or fee that would apply after expiration of the period are set forth in close proximity and in equal prominence to the first listing of the disclosure of the rate or fee that applies during the specified period of time; andThe annual percentage rate or fee that applies after that period does not exceed the “after rate” initially disclosed.An increase in an APR due to the completion of a workout or temporary hardship arrangement by the member, provided that:The APR that applies after the increases does not exceed the APR that applied prior to the beginning of the workout plan or arrangement (for a variable rate, the rate following the increase must be a variable rate using the same index and margin that applied before the beginning of the workout or hardhship arrangement; andThe credit union has provided the member prior to the beginning of the workout or arrangement a written disclosure of the terms of the arrangement.Reduction of the Credit LimitAdvance notice of a decrease in a credit limit must be provided before an over-the-limit fee or a penalty rate can be imposed solely as a result of the consumer exceeding the newly decreased credit limit.The creditor must provide notice in writing or orally at least 45 days prior to imposing the over- the-limit fee or penalty rateThe notice must state that the credit limit on the account has been or will be decreased.Increase in Rates due to Delinquency or Default or as a PenaltyA creditor must provide a written notice to each consumer who may be affected when:A rate is increased due to the consumer’s delinquency or default; orA rate is increased as a penalty for one or more events specified in the account agreement, such as making a late payment or obtaining an extension of credit that exceeds the credit limit.Timing of written Notice The credit union must provide written notice of the increase in rates at least 45 days prior to the effective date of the increase. The notice must be provided after the occurrence of the events that trigger the imposition of the rate increase.Content of DisclosureThe penalty rate increase notice must include the following:A statement that the delinquency or default rate or penalty rate, as applicable, has been triggeredThe date on which the delinquency or default rate or penalty rate will applyThe circumstances under which the delinquency or default rate or penalty rate, as applicable, will cease to apply to the consumer’s account, or that the delinquency or default rate or penalty rate will remain in effect for a potentially indefinite time periodA statement indicating to which balances the delinquency or default rate or penalty rate will be appliedIf applicable, a description of any balances to which the current rate will continue to apply as of the effective date of the rate increase, unless a consumer fails to make a minimum periodic payment within 60 days from the due date for that paymentFormatting – Notice with Periodic StatementsIf the penalty rate increase notice is included on or with a periodic statement, the required information must:Be in the form of a table Provided on the front of any page of the periodic statement, above any other change-in-terms noticesFormatting – Notice not with Periodic StatementsIf the penalty rate increase notice is not included on or with a periodic statement, the required information must be disclosed on the front of the first page of the notice. Only information related to the increase in the rate to a penalty rate may be included with the notice, except that the notice may be combined with other change in terms notices.Exception for Decrease in Credit LimitA creditor is not required to provide a penalty notice prior to increasing the rate for obtaining an extension of credit that exceeds the credit limit, provided that:The creditor provides at least 45 days in advance of imposing the penalty rate a notice, in writing, that includes:A statement that the credit limit on the account has been or will be decreasedA statement indicating the date on which the penalty rate will apply, if the outstanding balance exceeds the credit limit as of that dateA statement that the penalty rate will not be imposed on the date specified if the outstanding balance does not exceed the credit limit as of that dateThe circumstances under which the penalty rate, if applied, will cease to apply to the account, or that the penalty rate, if applied, will remain in effect for a potentially indefinite time periodA statement indicating to which balances the penalty rate may be appliedIf applicable, a description of any balances to which the current rate will continue to apply as of the effective date of the rate increase, unless the consumer fails to make a minimum periodic payment within 60 days from the due date for that paymentThe creditor does not increase the rate applicable to the consumer’s account to the penalty rate if the outstanding balance does not exceed the credit limit on the date specified.The notice is provided in one of the following manners:If provided on or with a periodic statement, the notice must be in the form of a table and provided on the front of any page of the periodic statement; orIf not included on or with a periodic statement, the notice must be disclosed on the front of the first page of the notice. Only information related to the reduction in credit limit may be included with the notice, except that the notice may be combined with other change-in-terms notices.PaymentsGeneralCredit unions must credit an open-end credit account with the amount of a payment on the day the payment is received. You may credit a payment at a later date only if the delay does not result in a finance charge.Payment SpecificationsThe credit union can make reasonable requirements for “conforming payments.” Reasonable requirements include:Requiring that payments be accompanied by the account number or payment stubSetting reasonable cut-off times for payments to be received by mail, by electronic means, by telephone, and in person (no earlier than 5 p.m. on the payment due date)Specifying that only checks or money orders should be sent by mailSpecifying that payment is to be made in U.S. dollarSpecifying one particular address for receiving payments, such as a post office box.Non-conforming PaymentsIf the periodic statement includes specifications on how the member is to make payments and the member sends a payment in a way that does not conform to those specifications, the credit union will be in compliance with the regulation if it accepts the payment and then credits it within five days of receipt.AdjustmentsIf your credit union fails to give same-day credit on a payment (or five-day credit on a nonconforming payment) and the failure results in a finance charge or other charges, the credit union must adjust the account so that the wrongly imposed charges are recredited during the next billing cycle.Credit BalancesFor any credit balance of more than $1 on an account (for example, by an overpayment made by the member), you must take the following actions:Credit the amount of the credit balance to the member’s accountRefund the credit balance, or any part of the credit balance remaining, within seven days of receipt of a written request for refund by the memberMake a good faith effort to refund any part of a credit balance remaining in the account for more than six monthsAccount TerminationYou cannot terminate an account prior to its expiration date solely because the member does not incur a finance charge.You are permitted to terminate an account that is inactive for three or more consecutive months. Billing ErrorsDefinitionA Billing Error includes the following:An extension of credit that is not made to the consumer or to a person who has actual, implied, or apparent authority to use the consumer's credit card or open-end credit plan.An incorrectly identified transaction on a periodic statement.An extension of credit for property or services not accepted by the consumer or the consumer's designee, or not delivered to the consumer or the consumer's designee as agreed.A creditor's failure to credit properly a payment or other credit issued to the consumer's account.A computational or similar error of an accounting nature that is made by the creditor.An extension of credit for which the consumer requests additional clarification, including documentary evidence.The creditor's failure to mail or deliver a periodic statement to the consumer's last known address if that address was received by the creditor, in writing, at least 20 days before the end of the billing cycle for which the statement was required.NoticeA billing error notice is a written notice from a consumer that:Is received by a creditor no later than 60 days after the creditor transmitted the first periodic statement that reflects the alleged billing errorEnables the creditor to identify the consumer's name and account number; andTo the extent possible, indicates the consumer's belief and the reasons for the belief that a billing error exists, and the type, date, and amount of the errorTime for ResolutionInitial AcknowledgmentYou must mail or deliver written acknowledgment to the consumer within 30 days of receiving a billing error notice, unless you have completed the investigation and have complied with notification requirements within that time.Investigation CompletionYou must complete the appropriate resolution procedures (including member notification) within 2 complete billing cycles (but in no event later than 90 days) after receiving a billing error notice.Rules Pending ResolutionUntil a billing error is resolved, the following rules apply:The member need not pay (and the credit union may not try to collect) any portion of any required payment that the consumer believes is related to the disputed amount (including related finance or other charges).The credit union cannot make or threaten to make an adverse report to any person about the consumer's credit standing, or report that an amount or account is delinquent, because the member failed to pay the disputed amount or related finance or other charges.The credit union may not accelerate any part of the consumer's indebtedness or restrict or close a consumer's account solely because the consumer has exercised in good faith rights provided by this section. A credit union is not prohibited from:Taking action to collect any undisputed portion of the item or billDeducting any disputed amount and related finance or other charges from the consumer's credit limit on the accountReflecting a disputed amount and related finance or other charges on a periodic statement, provided that the credit union indicates on or with the periodic statement that payment of any disputed amount and related finance or other charges is not required pending the credit union’s compliance billing error resolution requirementsProcedures if an Error OccurredIf the creditor determines that a billing error occurred as asserted, the following actions must be taken within the allowed time frame:Correct the billing error and credit the member’s account with any disputed amount and related finance or other charges, as applicable.Mail or deliver a correction notice to the member.Procedures if an Error Did Not OccurIf the credit union determines that no billing error occurred or that a different billing error occurred from that asserted, the following actions must be taken within the allowed time frame:Mail or deliver to the member an explanation with the reasons for the credit union’s belief that the billing error alleged by the member is incorrect.Furnish copies of documentary evidence of the member’s indebtedness, if the member requests it.If a different billing error occurred, correct the billing error and credit the member’s account with any disputed amount and related finance or other charges, as applicable.Credit Union Duties After ResolutionIf, after complying with all of the requirements of this section, a credit union determines that a member owes all or part of the disputed amount and related finance or other charges, the credit union must take the following actions:Promptly notify the member in writing of the time when payment is due and the portion of the disputed amount and related finance or other charges that the member still owes.Allow the member a grace period (if the account contains a grace period) during which the consumer can pay the amount due without incurring additional finance or other charges.Not report an account or amount as delinquent unless the amount due after resolution is not paid by the due date.Re-assertion of ClaimWhen a member reasserts the same claim, a credit union is not required to repeat the procedures described above. But if you have reported the account to a credit reporting agency as delinquent, you must:Inform the agency that the amount is in dispute.Mail a notice to the member stating the name and address of any reporting agencies to which you made a report.Promptly report any subsequent resolution of the dispute to all such agencies. Multi-Feature Open Ended LendingExistence of a PlanA Multi-Feature Open-ended Lending (MFOEL) plan is an open-end plan containing a number of different credit features. The consumer has a single account with the institution that can be accessed repeatedly via a number of sub-accounts established for the different program features and rate structures. Some features of the program might be used repeatedly (for example, an overdraft line) while others might be used infrequently (such as the part of the credit line available for secured credit). Repeated TransactionsThe credit plan must be usable from time to time and the creditor must legitimately expect that there will be repeat business rather than a one-time credit extension. The creditor must expect repeated dealings with consumers under the credit plan as a whole and need not believe a consumer will reuse a particular feature of the plan. Reusable LineThe total amount of credit that may be extended during the existence of an open-end plan is unlimited because available credit is generally replenished as earlier advances are repaid. A line of credit is self-replenishing even though the plan itself has a fixed expiration date, as long as during the plan’s existence the consumer may use the line, repay, and reuse the credit. Credit VerificationThe creditor may occasionally or routinely verify credit information such as:The consumer’s continued incomeEmployment statusInformation for security purposesTo meet the definition of open-end credit, such verification of credit information may not be done as a condition of granting a consumer’s request for a particular advance under the plan. A credit line is self-replenishing if the consumer can take further advances as outstanding balances are repaid without being required to separately apply for those additional advances. Verifications of Collateral ValueA creditor may verify collateral values to comply with federal, state, or other applicable law or in connection with a particular advance under the plan. ................
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