Source: http://www.philadelphiafed.org/bank-resources/publications/consumer-compliance-outlook/2010/fourth-quarter/payment-crediting-rules.cfm
Timestamp: 2014-10-01 06:06:33
Document Index: 410936317

Matched Legal Cases: ['§3500', '§129', '§129', '§226', '§129', '§226', '§1400']

Most financial institutions are familiar with this rule because pyramiding late fees is already prohibited by the credit practices rule issued by the Federal Trade Commission (FTC) and the federal banking agencies under the FTC Act.11 During the rulemaking, commenters questioned the need for this rule in light of these existing regulations. But the Board explained in the final rule that by “bringing the fee pyramiding rule under TILA Section 129(l)(2), state attorneys general would be able to enforce the rule through TILA, where currently they may be limited to enforcing the rule solely through state statutes (which statutes may not be uniform).” 12
Another important rule addresses material changes in the address or procedures for receiving credit card payments, which are defined as “any change in the address for receiving payment or procedures for handling
cardholder payments which causes a material delay in the crediting of a payment.”21 When this occurs, and it causes a material delay in crediting payments during the 60-day period following the change, the card issuer cannot impose late fees or finance charges for a late payment during the 60-day period following the date on which the change took effect.22 For this purpose, “material delay” means a delay in crediting a payment that results in a late payment and imposition of a late fee or finance charge. A delay that does not result in a late fee or finance charge is not material.23
1 73 Fed. Reg. 44521 (July 30, 2008), available online. 2 75 Fed. Reg. 7657 (Feb. 22, 2010), available online. 3 24 C.F.R. §3500.2(b). “Servicer means the person responsible for the servicing of a mortgage loan (including the person who makes or holds a mortgage loan if such person also services the mortgage loan).” The definition excludes certain federal agencies and government-sponsored enterprises.
4 Section 1464 of the Dodd-Frank Wall Street Reform and Consumer Protection Act amends TILA to add §129F, which requires loan servicers to promptly credit home loan payments. The requirements of §129F are similar to the ones in §226.36(c), except §129F applies to all consumer credit transactions secured by the consumer's principal dwelling, while §226.36(c) applies only to closed-end credit transactions. Under §1400(c) of Dodd-Frank, final rules must be issued within 18 months of the designated transfer date and the rules become effective 12 months after the issuance of the final rules.)