One provision of a recently enacted law requires that financial institutions send a periodic statement for open-ended loans (our L8s and L9s) 21 days before the next payment due date. As you know, BFSFCU has traditionally sent account statements after the close of each month. This does not currently meet the 21 day requirement for loans that are paid bi-weekly or semi-monthly, an option that many of our members choose because of their payroll schedule.
We are committed to complying with all laws and regulations and we are moving ahead quickly to overcome the operational challenges presented by this new regulation. Over the years, we have encouraged members to repay their loans on a bi-weekly or semi-monthly schedule because it is in their best interest to do so; these payment schedules result in reduced interest paid over the life of the loan, as well as a faster payoff of the loan principal. Thus, we are also committed to preserving these repayment options for our members. Please remember that our loans also have a 15 day courtesy period after the due date during which interest will continue to accrue, however no late fees will be assessed.
We will continue to move forward in good faith towards a solution that allows us to both be in compliance with this new law but also to preserve the options and convenience that our members expect from their Credit Union. Should you have any questions about this article or about your L8 or L9 loans, please contact us at 202-212-6400. |