6. When a balance is determined without first deducting all credits and payments made during the billing cycle, the fact and the amount of the credits and payments shall be disclosed. Except as provided in 1026.7(b)(4)(ii), any periodic interest rate that may be used to compute finance charges, expressed as and labeled Annual Percentage Rate, must be disclosed whether or not it is applied during the billing cycle. For home-equity plans subject to the requirements of 1026.40, if a creditor chooses to comply with the requirements in 1026.7(b), the creditor may use Samples G-18(A) through G-18(D) to comply with these requirements, as applicable. Alternatively, the card issuer may, but is not required to, modify the language to indicate that the penalty rate has been increased due to previous late payments (if applicable). The disclosure provided pursuant to this paragraph must be substantially similar to Sample G18(H) in Appendix G to this part. Web site address. The Periodic Statement Rule: Monthly Mortgage Statement Requirements - Nolo Penalty rate in effect. In the alternative, a card issuer may at its option state that such information is available from the Web site operated by the United States Trustee. (i) Except as provided in paragraph (b)(4)(ii) of this section, 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, along with the range of balances to which it is applicable. Creditors may apply a monthly periodic rate to an average daily balance. 5. 7. Periodic statements for billing cycles preceding July 31 in this example should not include in the interest charge disclosed under 1026.7(b)(6)(ii) the amounts a consumer may owe if the deferred interest balance is not paid in full by July 31. For example, a creditor may choose to honor a consumer's request to change from a due date that is the 20th of each month to the 5th of each month, or may choose to change a consumer's due date from time to time for operational reasons. If a hybrid prepaid-credit card is used to obtain an advance at an ATM and the transaction is partially paid with funds from the asset feature of the prepaid account, and partially paid with a credit extension from the covered separate credit feature, the amount to be disclosed under 1026.8(b) is the amount of the credit extension, not the total amount of the ATM transaction. The amounts, itemized and identified by type, of any charges other than finance charges debited to the account during the billing cycle. 1. For accounts with an outstanding balance subject to a deferred interest or similar program, the date by which that outstanding balance must be paid in full in order to avoid the obligation to pay finance charges on such balance must be disclosed on the front of any page of each periodic statement issued during the deferred interest period beginning with the first periodic statement issued during the deferred interest period that reflects the deferred interest or similar transaction. i. The requirement that the due date be the same day each month does not prohibit billing cycles that are two or three months, provided that the due date for each billing cycle is on the same numerical date of the month. 6. Advertising or marketing information. How Far In Advance to Send HELOC Statements | Bankers Online A collection of useful resources for various areas of the bank which have been developed by members of the BankersOnline staff or have been created and contributed by users of the BankersOnline site. For purposes of providing disclosures on the front of the first page of the periodic statement pursuant to 1026.7(b)(13), the first page of such a combined statement shall be the page on which credit transactions first appear. As an alternative, in this situation, a creditor may revise the balance computation names listed in 1026.60(g) to refer more broadly to all new credit transactions, such as using the language new transactions or current transactions (e.g., average daily balance (including new transactions)), rather than simply referring to new purchases, when the same method is used to calculate the balances for all features of the account. 12 CFR Part 1026 - Truth in Lending (Regulation Z) In a foreign transaction, the debiting date may be considered the transaction date. Disclosing this Web site address does not by itself constitute a statement that organizations have been approved by the United States Trustee for purposes of comment 7(b)(12)(iv)-2.iv. Accrued finance charges allocated from payments. Use of one balance computation method explanation when multiple balances disclosed. Requirements for home equity plans. The due date disclosed pursuant to this paragraph shall be the same day of the month for each billing cycle. More information on home equity lending is available in the Safety and Soundness Update, which discusses good risk management practices for refinancing junior liens. (See comment 6(a)(2)-1 for examples of other charges.). An alphabetical abbreviation of the name on the periodic statement even if the name appears in a more complete spelling on the receipt or other credit document. Educational materials that do not solicit business are not considered advertisements or marketing materials for this purpose. The creditor need not specifically identify the total dollar amount of credits not deducted in computing the finance charge balance. For example, assume a consumer has incurred $125 in fees for the calendar year to date for a retail credit card account, which is then replaced by a cobranded credit card account also issued by the creditor. 1026.57 Reporting and marketing rules for college student open-end credit. Information to compute balance. Limitation to periodic rates. In such a plan, the new balance need not reflect finance charges accrued since the last payment. Alternatively, the creditor could provide a statement for the cycle ending January9, 2012, showing the separate year-to-date totals for interest charged and fees imposed January1, 2011, through December31, 2011. At application and at the time of opening a HELOC account and before the first transaction is made B. If the periodic payment may increase without regard to an interest rate adjustment, the payment that corresponds to the first such increase and the earliest . (a) Furnishing statement of billing rights (1) Annual statement. Requirements for High-Cost Mortgages - 12 CFR 1026.32 87 Exemptions from HOEPA Coverage - 12 CFR 1026.32(a)(2) 88 . An annual percentage rate that differs from the rate that would otherwise apply and is offered only for a promotional period need not be disclosed except in periods in which the offered rate is actually applied. In identifying transactions under 1026.7(a)(2) for multifeatured plans, creditors may, for example, choose to arrange transactions by feature (such as disclosing sale transactions separately from cash advance transactions) or in some other clear manner, such as by arranging the transactions in general chronological order. (12) Repayment disclosures. SUPPLEMENTARY INFORMATION: The Board proposes changes to the format, timing, and content requirements for the four main types of home equity line of credit (HELOC) disclosures required by Regulation Z: (1) Disclosures at application; (2) disclosures at account opening; (3) periodic statements; and (4) change-in-terms notices. 226.7 Periodic statement. A telephone number, email address, or Web site location may be included, but the mailing address for billing-error inquiries, which is the required disclosure, must be clear and conspicuous. 4. 5. In a multifeatured plan, the previous balance may be disclosed either as an aggregate balance for the account or as separate balances for each feature (for example, a previous balance for purchases and a previous balance for cash advances). 1026.11 Treatment of credit balances; account termination. 1026.36 Prohibited acts or practices and certain requirements for credit secured by a dwelling. 2. ii. Terminology. An institution that acquires an account or plan must include, as applicable, fees and charges imposed on the account or plan prior to the acquisition in the aggregate disclosures provided under 1026.7(b)(6) for the acquired account or plan. (b) Rules affecting open-end (not home-secured) plans. See the commentary to 6(a)(1)(iii). If, however, these charges are financed as part of the plan, including charges that are paid out of the first advance, the charges must be disclosed as part of the finance charge on the first periodic statement. Date - when a transaction takes place. The minimum payment total cost estimate must be rounded either to the nearest whole dollar or to the nearest cent, at the card issuer's option; (D) A statement that the minimum payment repayment estimate and the minimum payment total cost estimate are based on the current outstanding balance shown on the periodic statement. iv. Or, call a banker at 800-642-3547 to discuss the option of locking in a fixed rate. 1. If such a time period is provided, a creditor may, at its option and without disclosure, impose no finance charge if payment is received after the time period's expiration. Seller's name - sufficiency of description. Explanation of balance computation method. 3. (ii) Negative or no amortization. 6. (See 1026.5(a)(2)(i).). The Web site address disclosed must take consumers directly to the Web page where information about accessing credit counseling may be obtained. 1. requirements for modified periodic statements and coupon books " in Section 5.10.2) March 29, 2018 3.1 On March 8, 2018, the Bureau issued a final rule amending the 2016 Mortgage Servicing Rules. (4) Periodic rates. 6. (B) The minimum payment repayment estimate, as described in Appendix M1 to this part. eCFR :: 12 CFR 1026.7 -- Periodic statement. Range of balances. requirements of paragraph (a) of this section apply only to home-equity plans In these cases, one explanation of the balance computation method is also sufficient (assuming, of course, that all portions of the balance were computed using the same method). 1026.8Identifying transactions on periodic statements. For example, a phrase indicating the late payment fee could be up to $29 complies with this requirement. A card issuer must provide the disclosures required by paragraph (b)(12)(i) or (b)(12)(ii) of this section in accordance with the format requirements of paragraph (b)(13) of this section, and in a format substantially similar to Samples G18(C)(1), G18(C)(2) and G18(C)(3) in Appendix G to this part, as applicable. For example, if the annual percentage rate applied during May was 18%, but the creditor will increase the rate to 21% effective June1, 18% is the only required disclosure under 1026.7(b)(4) for the periodic statement reflecting the May account activity. (3) Credits. REG Z-Periodic Statement for HELOC | Bankers Online The new balance must be disclosed in accordance with the format requirements of paragraph (b)(13) of this section. ( iii ) A billing cycle where an account has both a balance in a revolving feature where the required minimum payments for this feature will not amortize that balance in a fixed amount of time specified in the account agreement and a balance in a fixed repayment feature where the required minimum payment for this fixed repayment feature will amortize that balance in a fixed amount of time specified in the account agreement which is less than 36 months.