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How the C.A.R.D. Act Affects Your Loan

In May, Congress enacted new federal regulations, which provide important protection for consumers. The new CARD Act is primarily aimed at credit card practices; however, at the last minute, the bill was modified to include a broad range of consumer loans.

While SESLOC did not engage in the practices that prompted the new regulations, we are required to make changes in order to comply with the law. The first provisions, which went into effect August 20, will affect your consumer loan payment due dates.

Payment Dates Change: The new law extends the length of time you have to make your consumer loan or credit card payment to 21 days after your statement postmark date. In order to comply with the law, SESLOC must change the due dates of most consumer loans to the 26^th of the month. Visa^® credit card payments are due the 12^th of each month. Real estate loans remain unchanged.

Required Notices: Effective August 20, lenders are required to provide 45 days notice before increasing interest rates or fees.

Opt-Out Provision: Credit card issuers must allow you to avoid a future rate increase. If you choose to retain your current rate, the card is closed and you may not make additional charges; however, you have five years to repay your balance.

Most other key provisions of this legislation take effect in February 2010. We'll update you in the next Financial Focus newsletter. Please see CARD Act Q & A for more information.

CARD Act – Questions and Answers

Here are some common questions about changes resulting from the new federal regulations.

Q: Does this mean I must make my payment sooner than usual?

A: No. Your payment date is pushed back, which provides extra time for your payment to reach us.


Q: What if I don't want my payment date to change?

A: We realize that many members have chosen due dates to fit their monthly cash flow. Although we are required to change the due date, you may continue making payments on your current schedule without penalty.


Q: Will I need to change my payroll deduction or automatic payments?

A: No. If your loan payments are automatically deducted from your paychecks, no action is necessary. Whether you are paid once-monthly or more frequently, you may continue your regular deductions as before. Periodic payments and other automatic transfers also remain unaffected.


Q: Do consumers have the right to opt out of all changes in credit card terms?

A: No. The opt-out clause protects consumers from certain types of rate increases, such as those based on the cardholder’s creditworthiness or market conditions.