Federal regulations in the recently-passed Credit CARD Act require a 21 day monthly statement notice before any open-end loan payment is due. This affects all of our SimpleLoan plans, home equity lines of credit, and regular lines of credit. In order to comply with the new 21-day notice required by Federal regulations, American 1 is setting the due dates of open-ended loans to the 25th of each month. Some of your loans (such as those financed before August 2008) may not be affected.
While American 1 was largely unaffected by the new CARD Act, the biggest change will be the change in due dates on these types of loans. Below are some Frequently Asked Questions about the new CARD Act requirements.
What is the CARD Act?
The United States Congress created and the President signed a new bill called the Credit CARD Act of 2009. While the bill was originally targeted to make sweeping changes to how credit card issuers operate, the bill also included language that affects all open-end loans. Open-ended loans include credit cards, home equity lines of credit, and American 1’s SimpleLoan plan loans.
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, American 1 is changing its open-ended loan due dates and will include a notification of your due date on your monthly statement. In order to give 21 days notice, all open-ended credit due dates have been changed to the 25th of each month.
If your previous due date was on the 25th-31st of each month, your date will not change.
Learn more about the CARD Act, read the full bill or check out the breakdown.
When will this change take effect?
American 1 is switching all affected loan due dates in September 2009. If your loan falls under the CARD Act requirements, your payment will be due by September 25, 2009.
I make my payments automatically through direct deposit and automatic withdrawal. Will my due date be switched?
Yes, your due date will change, but because of our many payment options, you can continue to make your payment on the date that works best for your budget. Please call a member service representative at any office and let us review your account to ensure that your payment is processing in a way that works for you.
I want to keep paying my loan on my original due date. That fits into my budget. Do I have to change?
Though your due date is changing, the day you make your payment doesn’t have to. You may continue to pay your loan whenever is convenient for you as long as it is made by the 25th of each month.
If you would like to pay your loan earlier, and pay on your former due date automatically, we can set up an electronic funds transfer (EFT). If you pay at a branch, through online banking, or at a branch location, you can continue to use your original due date as long as your payment is made by the 25th.
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. All that is changing is the due date.
Do I have to fill out any new paperwork for this change?
No. The loan disclosure that you signed when you originally took out your loan allows American 1 to make changes to your loan, with prior notice. You received a copy of this disclosure along with the copies of your loan papers. If your loan is affected by the CARD Act, you would have received a letter as notice of the due date change.
I didn’t receive a letter. Does my loan due date change?
Chances are, if you financed a closed-end loan before August 2008, your due date will not change. This is because your loan was financed before we started our SimpleLoan lending program.
If, however, you opened an American 1 Visa or line of credit before August 2008, your due date will change to comply with the CARD Act.
What’s a good way to manage all my loan payments?
American 1 recommends setting up your account for online banking and e-statements, which lets you manage your account from anywhere there’s an Internet connection.
You can also set up automatic payments so that your loan payment is made on the same day each month. It’s easy, free, and one less thing to worry about.
I still have questions. Who can I contact?
Call any Member Service Specialist at (888) 213-2848. We would be happy to answer any questions you have.
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