When the new regulations mandated by the Federal Reserve go into effect on February 22, 2010, they will translate to many safeguards which SMCU has already been providing members. The following is a summary of what the new regulations mean for you and your credit cards through SMCU.
PERIODIC STATEMENTS
- When you receive your February credit card statement, you will notice some changes to the content and format of the statements.
- We will now provide you with information on how long it will take you to pay off your balance if the minimum payments are made.
- In addition, we will provide you the estimated monthly payment amount to repay your balance in 36 months.
- You will also see a phone number for BALANCE, our partner who provides free financial and debt counseling to SMCU members.
RATE INCREASES
- We will not increase the rate on your credit card for the first 12 months after you open an account, unless any of the following applies: your introductory rate expires after the six-month minimum period, if your monthly payment is more than 60 days late, or if you do not comply with the terms of a workout agreement that modified your payment schedule.
- If your rate is increased after the first year, the higher rate will apply to new charges only.
NOTIFICATIONS
- Before we make any changes to your credit cards with respect to rates, fees, or other terms, we will send you a notice 45 days in advance. After receiving the notice, you may elect to cancel your card provided that your balance and any accrued finance charges and fees are paid in full.
BILLING AND PAYMENT
- You will receive your statement at least 21 days before your payment is due.
- Your payment due date will be on the same calendar day each month.
- If your payment due date falls on a weekend or holiday, you have until the following business day to pay.
- If you pay more than the minimum balance, we will apply the excess amount to the balance with the highest interest rate.
OVER-LIMIT TRANSACTIONS
- We will no longer be charging an over-the-limit fee on any of our credit cards.
PROTECTION FOR UNDERAGE CONSUMERS
- If members under the age of 21 wish to open a credit card account, they must either demonstrate the ability to make payments on their own or apply with a co-signer.
- If an underage member has a card with a co-signer, the co-signer must agree in writing to any requests for a credit-limit increase.
