Here are a series of questions and answers about the new law and hnow it may affect your account.

What does the CARD Act stand for?

CARD Act stands for: Credit Card Accountability, Responsibility and Disclosure Act of 2009.  The CARD Act was created to eliminate the unsavory lending practices used by some financial institutions and credit card companies.

When does the CARD Act take affect?

The first changes began August 20, 2009. This impacts the mailing of monthly statements and requires that they be mailed at least 21 days prior to the payment due date. To accommodate this provision, ISU Credit Union has advanced payment due date on your loan to the 28th of each month.

I thought the Card Act only applied to credit cards. Why does the Card Act apply to my personal loan?

When the Credit Card Accountability Responsibility And Disclosure Act of 2009 was written, legislators included “all open-ended lending”. Here at the credit union, we use open-ended lending documents for our personal loans, as well as our Home Equity Line Of Credit products.

What is an open-end loan?
Simply put, the Open End Plan is a collection of loan closing documents that enable you to do all of your future borrowing without having to sign the same forms each time you borrow. With a signed Open End Plan, loan requests can be handled quickly and easily over the phone, by mail, or by fax in the future.   ISU Credit Union has several types of open-end loans including Auto, Home Equity Lines of Credit, Recreational Vehicle, Signature, Share or CD secured loans.  Open-end lending plans provide flexibility and efficiencies that do not require members to go through the entire loan application process each time we fund a loan. 

Are all financial institutions required to make this change? Will I get notices from other places if I have a credit card or loan with them?

The Card Accountability Responsibility and Disclosure Act of 2009 apply to all creditors and financial institutions that issue credit cards or offer open-ended lending products.

What types of ISU Credit Union loans are affected?

Unsecured Lines of Credit; Home Equity Lines Of Credit; and Open End Loans including New Auto, Used Auto, RV, Share and Certificate Secured Loans.

How do I know if my loan is affected?

ISU Credit Union will notify members affected by either email or regular mail.  

My loan (auto, recreational vehicle, signature, share or CD secured) was funded under an open end lending plan, and I chose bi-weekly payments.  With payments scheduled every 14 days, how is it possible to provide at least 21 days notice before each payment is due? 
Your loan due date will be changed to the 28th of each month.  You may make partial payments at any time during the month, but the actual due date will be the 28th. 

Before when I made bi-weekly or semi-monthly payments, these payments would advance my due date to the next bi-weekly or semi-monthly payment date. Will this still continue to occur?

No, your due date will remain the 28th of each month. Once the complete payment amount for that month has been satisfied, the due date will change to the 28th of the next month.

I mail a check each month to pay my loan. How will my loan be affected?
You may continue to mail your check and it will be credited to your loan when it is received.

Can I still have an automatic payment on my loan?

Yes. Your loan can still be set-up on automatic payment. Keep in mind, the due date of your loan will remain on the 28th of the month.

Will this new regulation affect my 1st Mortgage or 2nd Mortgage due date?

No. The new regulation only applies to open-ended lending such as our personal loans, and HELOC products.

I received a letter that states you are going to change the due date on my loan to the 28th.  I do not want to change my due date. Can I send you a notice that I want the due date changed back?

No. We are bound by The Credit Card Accountability Responsibility And Disclosure Act of 2009 (Credit Card Act). We must keep your due date the 28th of the month to remain in compliance with this new regulation.

Do I have to sign additional paperwork for you to change my due date?
No, the loan disclosure you signed when you took out your loan allows ISU CU to make the required changes to your loan.

Will I be receiving late charges because of these changes?

During September, no late charges will be assessed on your loan.

If the Card Accountability Responsibility And Disclosure Act of 2009 is repealed as it concerns my personal loan, can I switch back to my old due date?

Yes. If the regulation is changed, you can make arrangements to have your due date changed back. Keep in mind; this would happen only if we no longer had to abide by the Card Accountability Responsibility and Disclosure Act of 2009.

I don’t consider a loan with a fixed payment and term (auto loan, recreational vehicle loan, signature loan, share or CD secured loan, etc.) to be “open end.”  Who can I talk to in order to voice my opinion about the CARD Act of 2009? 
You may go online to the United States House of Representatives

(http://www.house.gov/Welcome.shtml) website and enter your zip code to find your Representative.  You may go online to the United States Senate

(http://www.senate.gov/) website and select your state to find your Senators.