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Credit CARD Act of 2009 – new periodic statements for loans

Under the Credit CARD Act of 2009 and recent amendments to Regulation Z, financial institutions must mail or deliver periodic statements for open-end consumer credit plans at least 21 days before the payment due date. Congress established an August 20, 2009, effective date for this requirement. Open-end credit plans include most auto and consumer loans at credit unions, and credit cards.  What does this mean to you?  Check out the FAQ below.  Please call 1.800.232.8669 for any additional questions.

Q:
Why am I receiving a statement for my auto loan?
A:
Alliance uses an open-ended loan agreement for many of its loan products, including auto loans. Per the Credit Card Act of 2009 all open-ended loan plans must receive account and payment information at least 21 days before the payment due date. Our procedures prior to August 20 did not meet this requirement. Because Alliance has payments due every day of the month, we opted to send a periodic statement to all open ended loan accounts to meet this 21 day advance notice requirement
 
 
Q:
How can I receive this new periodic statement electronically?
A:
Currently, these statements are not available electronically but may be in the future. Please keep checking with us about this option.
 
 
Q:
My loan is set-up on automatic payments. How does this periodic statement affect my automatic payment?
A:
It doesn’t. Your automatic payments will continue uninterrupted.
 
 
Q:
I use/requested payment coupons. What do I do now?
A:
If you currently use payment coupons please discontinue using them and instead mail the bottom portion of the periodic statement with your payment. If you requested them for a new loan other than a real estate loan or CUDL loan (auto financing received at a dealership) and have not received them, we replaced payment coupons with the new periodic statement. Please mail the bottom portion of the periodic statement with your payment.
 
 
Q:
I have an auto loan with Alliance but did not receive a periodic statement—why?
A:
You may have a closed ended auto loan—called a CUDL or indirect auto loan. These loans originate at an auto dealer instead of the Credit Union. If you worked directly with a Credit Union employee to obtain a loan you will usually have an open ended auto loan. Please call the Lending Department if you have any questions about the type of auto loan you have.

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