BFSFCU is very pleased with this correction, as the earlier law would have forced us to no longer allow our members to pay their open-ended loans on a bi-weekly or semi-monthly payment schedule.
As noted before, we have encouraged our members to pay their loans on a bi-weekly or semi-monthly schedule because doing so reduces the amount of interest paid over the term of the loan; in addition, it is convenient for our members who receive their payroll on these schedules.
The new law removes this requirement for open-ended loans and we are happy to report that we can continue to offer these options to our members while also remaining in compliance with all laws and regulations. |