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Credit “CARD” Act - PDF by ituplike76


									      Credit “CARD” Act

Recently, Congress enacted the Credit Card Accountability Responsibility and Disclosure Act of 2009
(Credit CARD Act). The Act is designed to prohibit certain practices that are considered to adversely affect
consumers. The provisions of this act apply to credit cards and open end loans. Majority of the loans at
Bellwood FCU are considered "open end loans" because we use the LOANLINER open end document to
process your loan requests such as personal and vehicle loans.

While Bellwood Federal Credit Union did not participate in any of the prohibited practices, two of the
specific provisions will affect your loans at the credit union as of August 20, 2009:

 A change in terms, such as your interest rate, will require 45 days notice before the change can be
 Periodic statements that contain information for an open end loan must be mailed 21 days prior to the
due date.

Currently, many of our members pay their loans on a weekly, bi-weekly or semi-monthly payment
schedule. In order to comply with the Credit CARD Act, all Bellwood FCU loans that are considered "open
end" except VISA credit cards will be due by the 28th of each month effective September 2009. (If you
have a closed-end loan with Bellwood FCU, your due date for those loans will not change.) Since we offer a
combined statement, conveniently consolidating all of your accounts, this serves as your payment due date
notice each month and therefore must be mailed 21 days prior to that due date. Your VISA credit card
statement will continue to be mailed separately.

We are committed to complying with the Credit CARD Act with little or no inconvenience to our members.

Should you have any questions, please feel free to contact our Loan Department at 804-271-0181, 800-
899-2355 or

Frequently Asked Questions

Why did Congress enact the Credit CARD Act?
To prevent some practices by credit card issuers that were considered to adversely affect consumers, such
as universal default rates, excessive fees and misleading terms. Bellwood Federal Credit Union did not
participate in any of these practices.

How will this affect my accounts?
The only accounts that are affected are open end loan accounts. You will continue to receive a separate
statement for your credit union VISA account that will include the due date. Any closed-end loan due date
will not change.

What are Open End loans other than credit cards?
Open end lending plans require that a credit agreement is signed at the inception of the plan. Future loan
advances under this type of plan may not require a signature. Bellwood Federal Credit Union has offered
open end lending for many years based on the convenience it allows for our members. The following loan
types fall under an open end lending plan at Bellwood Federal Credit Union:
 Personal Loans
 Lines of Credit
 Overdraft Loans
 Vehicle/Boat/RV/ Motorcycle loans
 Home Equity Line of Credit
 Share/Certificate Secured Loans
The following loans are considered "closed end" or are not affected by the Credit CARD Act:
 Closed-End Home Equity Loans
 Credit Union Direct Lending (CUDL) Vehicle loans

When will my loan payment be due?
Your loan payment will be due by the 28th of each month beginning in September 2009. The following
exceptions apply:
 If your loan is already scheduled for monthly payments due on or after the 28th of the month, your loan
will not be affected.
 For VISA credit cards, please see your monthly billing statement for the payment due date.
 Closed-end home equity loan payment due dates are not changing.

Your payments due in August or for prior months will not be affected and will still be due as scheduled.

What if I make my payments through payroll deduction or direct deposit and my payments are due
weekly, bi-weekly or semi-monthly?
You can continue to make payments through payroll deduction or direct deposit. Continuing to make
payments at your current frequency will benefit you. Since each payment reduces the principal amount,
you will effectively pay less interest if you make payments according to your current schedule.

Can I help reduce the expense of this to the credit union?
Absolutely. The credit union is trying to minimize the cost of complying with these new regulations, while
still offering the same great quality service and care our members expect. You can help Bellwood FCU by
signing up for e-Statements instead of receiving your statement in the mail each month. Our e-Statements
contain the same information as the paper statements, but reduce our costs by eliminating the processing,
printing, handling, and shipping expenses associated with the paper version. They also help protect your
account information by being integrated into our On-line Banking and eliminating the amount of personal
information mailed. You will be notified each month with an email that your statement is ready and you
can download it through the same Net Branch system you are familiar with today. Simply enroll in e-
Services, (which is available in Net Branch) to begin receiving e-Statements.

Who do I call if I have questions?
Our staff will be glad to assist you through this transition. We will do everything possible to insure a
smooth conversion to your monthly loan payments. Please do not hesitate to contact our Loan Department
if you have any questions.

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