Credit Card Accountability Responsibility and Disclosure Act
Notice of Change in Terms
Effective August 31, 2009, Franklin Mint Federal Credit Union is amending certain terms of its Home Equity Line of Credit Agreement and Credit Line Account Agreement and Disclosures.
Payment Due Date. The due date for any personal or auto loan, credit line account, or home equity line of credit account after September 1, 2009 will be changed to be the 25th day of the month. This will allow us to mail your monthly statement(s) at least 21 days prior to the payment due date as recently required by federal law.
The current late payment period of 15 days, (the time following the payment due date in which you must make your payment without incurring a late fee) is not changed but the period will begin to run on the new due date.
Automatic Loan Payments. Any automatic payments that you have previously authorized through payroll/ACH or e-transfers will continue. You do not need to make any changes to these authorized loan payments and we will continue to make these as authorized unless you tell us otherwise. However, if the loan is paid through the auto transfer/sweep account process, it will be processed on the new loan due date and you should ensure sufficient funds are in these accounts for the new due date.
The Credit Card Accountability Responsibility and Disclosure Act (Credit CARD Act) was recently signed into law, providing consumers who have credit card accounts with added protections. The Act also impacts consumer loans or lines of credit with Franklin Mint Federal Credit Union (FMFCU). If you have an existing Auto, Home Equity Line of Credit, Personal Line of Credit or Personal loan, with or without a balance owed, FMFCU must mail your monthly statement at least 21 days before the payment due date.
HOW YOUR LOAN ACCOUNTS ARE AFFECTED
To comply with this Act for the above loans, all payment due dates that are currently from the 1st- 24th will be changed to the 25th of the month, beginning in September 2009. This change in due date does not alter the calculation of your finance charge. Mortgage and home equity loans are not affected and any changes with your FMFCU credit card will be provided under separate cover from FIA Card Services, Inc. Due dates on the 25th and after are not affected.
e-BANKING CAN HELP (and it’s free!)
We understand some of our members have established due dates based on pay cycles. While we can’t change your official due date, you can set up recurring e-Banking transfers to make automatic payments at anytime during the month. If you are not an e-Banking user, we will, upon your request, establish your e-payments on your behalf. No action is needed on established e-payments, payroll or ACH distributions (if you want to change payment accounts, contact us to complete a permanent withdrawal form).
If you do not make any changes in e-Banking or by request, you do not have to do anything and your payments will be withdrawn on the 25th of each month.
Questions and Answers