***IMPORTANT NOTICE TO MEMBERS WITH CLEARVIEW LOANS***
Frequently Asked Questions about Your Clearview Loan Due Date Changes
1. Why is this happening?
In 2009, the United States Congress created and the President signed a bill called the “Credit Card Accountability, Responsibility and Disclosure (CARD) Act”. The bill was originally targeted to make sweeping changes to how credit card issuers operate by stopping abusive practices that some credit card companies employed. However, recent amendments have been made to the bill that includes language that affects ALL open-end loans.
2. What is an open-end loan?
All loans through Clearview® Federal Credit Union and credit unions in general are open-end loans including Lines of Credit secured loans and auto loans financed directly through Clearview with the exception of our first mortgages, auto loans financed directly through a dealership and Home Equity Fixed Rate Installment loans. This means you signed one master application (Permanent Credit Agreement Plus/LoanLiner) and have applied for a loan advance either in person, by telephone, by mail or through an Internet request.
3. Why is my loan due date being changed to the 27th of each month?
One of the provisions of the law requires that financial institutions notify the borrower at least 14 days in advance of the actual loan payment due date. To meet this requirement, Clearview will include a notification of your due date on your regular monthly statement. Since the statements are mailed between the 1st and 6th of each month, moving the due date to the 27th of each month provides you with the proper notification and allows us to be in compliance with this regulation. Changing your due date causes the least amount of disruption to you, our member.
4. Do I have to sign new loan papers to make this change take effect?
No. The Permanent Credit Agreement Plus/LoanLiner that you signed allows Clearview to make changes to the terms of the Agreement such as a change in your due date, minimum payment and annual percentage rate, with prior notice. You received a copy of this disclosure along with copies of your loan papers. The insert you receive with your July statement acts as ‘prior notice.’
5. My loans are on payroll deduction/automatic transfer/paid through direct deposit. How will this be affected?
If your loans are automatically paid through payroll deduction, direct deposit or an automatic transfer, you do not need to do anything. Your payments will continue as always, whether they are set up as weekly, bi-weekly, semi-monthly or monthly.
6. I mail a check each month to pay my loan. How will I be affected?
There will be no change. You may continue to send your check monthly to pay your loan.
7. I want to keep paying my loan on the date I already have because that fits into my budget. Do I have to change?
No. You may continue to pay your loan on the same date as before, as long as you make your full monthly payment by the new due date of the 27th.
8. I still have coupons with my original due date. Can I still use them?
Yes. You can continue to use your current coupons.
9. Will my payment amount remain the same?
Yes, although your Clearview loan payment amount due on the 27th will now reflect a monthly payment amount.
10. Does the term of my loan get extended?
If your loan was scheduled to be paid off in a specific number of payments (for example, 36, 48, 60, etc.), then you will need to make that many monthly payments to pay off the loan.
11. Will my interest rate change?
Your interest rate will not change on an open-end loan(s). Your rate could change on any variable rate loan(s) you have with Clearview as per the Agreement you signed.
12. How will this change affect the amount of interest due on my loan?
Interest on your loan accrues daily on the unpaid balance of the loan. For example, if your loan is paid bi-weekly, each payment includes 14 days of interest. If you continue to make your payments as you do now, there should be no change to the amount of interest paid over the course of the loan. If you choose to wait until the new due date of the 27th, the amount of interest due will be the number of days between payments multiplied by the daily interest rate. Interest is always calculated from the date of the last payment. If payments are made in the same consistent manner as they are today, the interest should not be affected.
13. How exactly will my loan due date change?
Members with monthly loan payments due on October 1 through October 26, 2011 will have their due date changed to October 27, 2011. These members will still need to make their October payment. Loans with a payment due date of October 28 through October 31, 2011 will have their loan due date advanced to November 27, 2011. These members will need to make their regular monthly payment in October to prevent additional interest accruing. Interest is accrued from the date of your last payment to the date of your next payment.
14. Will changing the due date affect my credit report or rating?
Changing the due date on your loan(s) will not negatively impact your credit report.
15. How will my Clearview Visa Credit card be affected?
The good news is that your Clearview Visa Credit card already complies with the requirements from this regulation. If you have a Clearview Visa Credit card, you already know about the low interest rates and low fees that go along with a Clearview Visa as well as a reasonable grace period and great member service. Clearview has never been involved in abusive or deceptive practices such as high over limit fees and huge interest rate hikes that led to this legislation.
16. Where will I be able to see the details of my loan(s) with these changes?
You will be able to view all of the details and activity on your Clearview loan(s) on your regular monthly statement. In addition to information on all of the activity on all of your other Clearview accounts, your regular monthly statement will include information such as due date, credit line, available credit, new balance, past due amount, payment amount and Annual Percentage Rate (APR). You can continue to use Online Banking to conveniently view details on not only your Clearview loan(s) but all of your Clearview accounts.
If you have any other questions or wish to discuss this change further, please contact Clearview by calling 1-800-926-0003.
