CARD Act of 2009

What is the CARD Act?

The recently signed Credit Card Accountability Responsibility Disclosure Act of 2009, also called the Credit Cardholders' Bill of Rights, makes many changes to the way credit cards are regulated. The act was originally intended for credit cards but the rules were interpreted to apply to certain types of other loans, which includes those offered by TUCOEMAS Federal Credit Union.

What loans are affected by this new law?

The law impacts all “open-ended” loans, which could include the following TUCOEMAS Federal Credit Union loans: car, boat, motorcycle, watercraft and RV loans, personal loans, lines of credit, share/savings-secured and CD-secured loans.

What are open-ended loans?

Open-ended loans are a type of consumer lending primarily used by credit unions that makes future borrowing easier and more convenient for our members.

Will my mortgage or student loan be affected?

No. Traditional mortgages that do not allow advances and most student loans are not impacted by the Credit Card Act.

How does this law affect my loans at TUCOEMAS Federal Credit Union?

Recent changes required us to give you further notice of when your payment is due. In order to comply, we must change the due date for all loans to the 28th of each month and convert your payment loan frequency to monthly if it previously was not.

What will happen to my payment?

Technically, nothing. Your interest rate and the terms of your loan agreement will not be changed. However, your loan payment frequency is now monthly and your due date is the 28th.

Can I continue to pay on the same day(s) I always have—for example, weekly, bi-weekly or semi-monthly?

Yes, you can continue to repay your loan as you always have. If you pay weekly, bi-weekly or semi-monthly, you also may notice that your payment amounts listed on your statement may look different. This is okay—we are making internal changes to ensure your payment amount is correct and you don't fall short.

Since my payment due date is now the 28th, does that mean the date my payment is automatically transferred from my checking or savings account will change to the 28th also?

No, the automatic transfer payment date won't change unless you request that it change. If you wish to continue having your payment deducted on the same schedule that you always have, you don't need to do anything.

Will my ACH change?

No. If you make loan payments weekly, bi-weekly, monthly or semi-monthly through payroll deduction from your employer, automatic transfer from a TUCOEMAS Federal Credit Union account, or ACH from another institution, you will not need to do anything as we will gladly accept the amount you are currently paying.

Will my statement change?

Yes, your statement will now show your monthly due date of the 28th and the amount of your monthly payment.

I use a coupon book to pay my loan. Do I need a new coupon book?

No, coupon books are no longer needed as your payment and due date will now be displayed on your statement. You can just write your loan number on the memo of your check and pay as you always have.

What if I don't currently have a loan but receive the letter advising me of the loan due date and payment frequency changes?

We apologize for any inconvenience and ask that you please disregard the letter.

What if I'm past due on my loan?

Your payment will be changed to the 28th of the month that you are currently due. For example, if your payment was due September 15 and you're past due, your payment is now due September 28th. Any amount you are past due is still owed.

Will my home equity line of credit be affected?

Yes. In approximately 90 days, you will start to receive a separate bill itemizing all activity on home equity lines of credit and variable rate home equity loans. Your home equity line of credit will only change if your due date is not currently on the first of each month and/or if your payment frequency is not monthly. We will mail notification of the specific changes prior to implementation and also update this FAQ accordingly.

This is called the Credit Card Act of 2009 but you have not mentioned any changes to my credit card?

Stay tuned! This new law will bring additional changes to TUCOEMAS Federal Credit Union credit cards and loans, so look for more notifications in the upcoming months.

Where can I read this new law?

Click Here.