Credit CARD Act: CUNA addresses CUs' FAQs

WASHINGTON (8/18/09)--The Credit Union National Association (CUNA) has prepared a document to assist state leagues and credit unions with credit unions' questions regarding their compliance obligations under the Credit Card Accountability, Responsibility and Disclosure (CARD) Act provisions--especially on the 21-day periodic statements provision.

CUNA has continued to receive compliance questions on the provision, which requires periodic statements to be provided 21 days before the payment due date for all open-end credit, effective Thursday.

Although the trade association continues to aggressively pursue relief for credit unions on several fronts, the Federal Reserve Board has signaled that it will not provide relief to credit unions beyond the "short period of time" approach addressed in the rule's supplementary information, said Jeff Bloch, senior assistant general counsel, and Mike McLain, senior compliance counsel at CUNA..

That approach allows credit unions to comply with the rule even if periodic statements disclose payment due dates that are technically inconsistent with the rule. However, the CUNA attorneys said this relief is only available if a disclosure is provided on or with the periodic statement that the consumer's payment will not be treated as late for any purpose--if:

  • It is received within 21 days after the statement was mailed or delivered; and
  • The credit union does not treat the payment as late for any purpose if received within that time period.

"Our primary focus for relief right now is Congress," Block and McLain said. "We will be working diligently throughout the recess and when Congress returns to achieve passage of an amendment to limit the scope of the 21-day rule to credit cards. Meanwhile, we continue to pursue other avenues of relief, including enforcement flexibility from the regulators."

Questions frequently asked are addressed at the resource link.

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Resource Links
FAQs on periodic statements at least 21 days before due date
CreditAbility: Build a Strong Credit History member seminar kit
Credit Cards: Switch & Save drive-up envelope
Keeping Score: Facts About Credit Scores statement stuffer
Credit CARD Act


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