TILA - Open End Credit Flashcards
Open end credit is a consumer credit extended under a plan where
Repeated transactions are contemplated
A finance charge is imposed on an outstanding balance
Disclosures for open end credit must be made
Clearly and conspicuously
May be provided electronically with customer consent
No consumer consent is required to provide disclosures required
In adverstieme nets
Home equity plans, when app assed on line
Credit card applications taken in electronic form
Except for the following, disclosures must be in writing and in a form the customer can keep
Govt agency taxes
Charges for terminating a plan
Reduction in credit limit
On home equity plans, the terms finance charge and annual percentage rate must be
More conspicuous than other disclosures when required to be disclosed with corresponding amounts
In telephone transactions, account opening disclosures may be provided as soon as reasonably
Practical after first transaction
Account opening disclosure for a home equity line must disclose
Finance charge
Amount of any other charge that may be imposed
How the creditor can terminate the plan
Payment terms
Statement of what minimum payments do
Statement that negative amortization may occur
Limitation of extensions
Consult tax advisor about tax deductions
Identity security interest
Statement of billing rights
For rates tied to an index or formula the following must be disclosed
Fact apr may increase
How rate was determined
How rate may increase
Frequency of rate increase
Limitation of rate increase
For rate not tied to an index the following must be disclosed
Initial rate
How long rate will be in effect
Rate that will apply once rate changes
Balances to which new rate would apply
Periodic statements must be mailed or delivers _______ days before due date
21
Card issuer can not treat minimum payment as late if
Payment is received within 21 day period
Annual statement of billing rights must be sent
At least once per calendar year at intervals not less than six months but not more than 18
If a new feature is added within 30 days after mailing intial disclose then
No new disclosures are necessary unless the finance charges have changed
Change in terms for home equity loan
Written notice required
Notice must be mailed within 15 days before the effective date change unless the change was agreed upon by the customer
If creditor prohibits additional credit or reduces credit, a notice must be mailed to each affected consumer not later than ______
3 business days
Written notice of a change in terms for a open end plan not home secured requires at least ______ days
45 days notification unless the consumer agrees to the change. The. It only has to be given before the effective date
An open end plan that is not home secured do not trigger a notice when
Termination of an account
Change due to court proceedings
Extension of a grace period
Disclosures required upon renewal of a card when
Annual or other fee is charged. Notice must be mailed 30 days before fee is charged
A solicitation occurs when
The card issuer offers to open a credit or chart card account without requiring the consumer to complete an application
The following must be printed in bold when required to be displayed in a table
APR
Introductory rate
Rate that will be effective after the premium initial rate expires
If the application or solicitation is made electronically, the consumer must be
Able to access the disclosure at the same time as the solicitation
The APR for purchases must be in what font size
16 point
Disclosures may be given in a foreign language provided they are also available in
English
What is a billing error notice
A written notice from a consumer at the card issuers address received within 60 days after the periodic statement containing the error
On receipt of a billing error notice, the creditor must Resolve the disputes or send written acknowledgement within
30 days
If the dispute is not resolved in 30 days the creditor must resolve the dispute within
Two billing cycles, not to exceed 90 days
Until the billing error is resolved,
The consumer need not pay
The creditor can not threaten to take adverse action
Creditor may. It accelerate any part of the consumers debt
If the creditor determines that the consumer owes all or part of the disputed debt the creditor must notify the consumer that
Payment is due
Must allow the consumer any grace period allowed in the plan to repay the debt
May report an amount delquent after the grace period elapsed
May not report delquent if creditor receives another notice of dispute
A creditor shall not terminate an account before its expiration date solely because the consumer does not incur a
Finance charge
A creditor may terminate an account that is inactive for
Three or more months
Card holder may not be held liable for unauthorized use of the credit card for more than
$50
If an advertisement states specific terms, it must only state those terms
Actually offered by the bank
A card issuer may not open or increase an open end credit unless it considers
The ability to make the minimum periodic payments
Card issuers must establish and maintain reasonable written policies and procedures to consider
An applicants income or assets and must require the consideration of at least one of the following
Dti
Dti to assets
Incomes consumer will have after paying debts
Consumers under 21 must submit a ___________ ______________ when applying for credit card
Written application
No increases can occur on the account for someone less than 21 unless
There is a written agreement of the co-signer, joint applicant or guarantor
Fees that are not subject to 25 percent fees limit rule include
Late payment fees
When a consumer makes a payment in excess of the required minimum for an open end account, not home secured the allocated amount must be allocated
First to the balance with the highest APR
