1026.10 - Payments

Question 1

What is the general rule for payments?

Answer 1

Crediting of acct as the date of receipt EXCEPT when a delay in crediting DOES NOT result in an FC or other charge being applied.

Question 2

Specific requirements and examples

Answer 2

Credit may specify reasonable requirements for conforming pymts. Examples can include: pymt accompanied by acct #, setting cut-off times by methods (no earlier than 5pm local), checks/MOs sent by mail, US dollars, etc.

If payment method is promoted by FI, it is considered conforming and shall be credited day of receipt unless delay in FFC.

Question 3

In-person credit card payment specifics

Answer 3

Can be made at branch prior to close of business. Cut-off cannot be prior to close.

Question 4

Non-conforming payments

Answer 4

If FI accepts payment that wasn’t conforming, creditor shall credit payment within 5 days of receipt.

Question 5

Adjustment of Account due to Error

Answer 5

If pymt not credited day of receipt as required, FI should adjust account accordingly by next billing cycle.

Question 6

Crediting when FI doesn’t accept pymt on due date

Answer 6

I.e., holidays or Sundays not considered business, etc. Cannot treat mail pymtns as late if “received” next business day. Non-mail is still considered due date if available.

Question 7

Fee Limitations on Pymt Method

Answer 7

FI cannot impose separate fee for pymt method unless fee results in expedited service by CSR of FI (not incl. IVR)

Question 8

Charges by Card Issuer

Answer 8

If FI makes material change to address (including retail locations) for receiving or procedures for processing pymts and it causes delay in the crediting of pymt within 60 days AFTER changes, FI cannot impose late fee or FFC for late payment. For retail locations, can charge fee but must waive in the event customer asks for it within 60 days after change is made.