Frequently Asked Questions About Due Date Change on Revolving Lines of Credit and Home Equity Lines of Credit
- Why is this happening?
On May 22, 2009, President Obama signed the Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit CARD Act) into law. While the bill was originally targeted to make changes to how credit card issuers operate, the bill also included language that affects all open-end loans. All revolving lines of credit and all home equity lines of credit are considered open-end loans.
- Why is my loan due date being changed to the 28th?
One of the provisions of the law requires that the financial institution notify the borrower at least 21 days in advance of the actual payment due date. To meet this requirement, CapEd will now include a notification of your due date on your periodic monthly statement. Since the statements are usually mailed by the 3rd of each month, moving the due date to the 28th of each month allows the proper notification to you about your next loan payment.
- My loans are on direct payroll deduction and are usually applied on the day my payroll arrives. Will this change?
No. If your payments are made directly from your payroll, they will continue to do so on the day your payroll arrives.
- I receive a monthly billing notice and mail a check each month to pay my loan. Will this change?
Yes. If you have been receiving a monthly billing notice and mailing a check, you will no longer receive a monthly billing notice. A reminder of your payment due will be included on your periodic monthly statement. You can now make your payment anytime from the 1st to the 28th. If mailing in a payment, please enclose a note specifying your account number and loan number.
- My loan transfers from my share or share draft on the loan due date. Will this change?
Yes. If your payment(s) are set up to transfer from your savings or checking account, they will continue to do so; however, the payment will now be deducted on the 28th day of each month. If you would like the payment to deduct on a different day of the month, you may set up an automatic transfer on your home banking account. If you make this change, please contact a loan officer and ask them to change the payment method on your loan.
- Will my monthly payment amount remain the same?
Yes. All of the other terms of your loan will remain the same, including the monthly payment amount. Please note: Taking additional advances on your loan balance may cause your payment amount to increase. Please check your original loan agreement for details.
- How exactly will my loan due date change?
The change will be automatic. You will be receiving your August statement around the 5th of September. That periodic monthly statement will list your loans and when the next payment(s) are due. All revolving lines of credit and all home equity lines of credit will show due for September 28, 2009 or October 28, 2009 depending when you made your last payment. The loan may show due for a different month if your loan was delinquent at the time of the change.
- What if I want to make changes to the way I make payments?
Simply call our office at 1-208-884-0150 and ask for a loan officer. We would be happy to explain the various payment methods and assist you with any necessary paperwork.
- When will my loan be considered delinquent?
Your loan will now be due on the 28th day of each month. Your loan will be considered past due if we receive it any time after the 28th. Late fees will be assessed after the loan becomes 12 days past due.
- How often will I receive a statement?
If you are receiving monthly statements, you will continue to receive monthly statements. If you are receiving quarterly statements you will start receiving monthly statements in September.
If you have any additional questions, please feel free to contact one of our loan officers at 1-208-884-0150.