In today's world, credit and debit card use is almost universal. According to a Federal Reserve study, there were 21.7 billion credit card transactions in the United States in 2006. That's about 70 credit card transactions per year for every single person in the United States. Furthermore, debit cards have all but replaced checks and have greatly reduced the number of cash transactions.
In this module, we will discuss credit cards and debit cards in the United States.
This course includes an examination.
- Ensure all credit card application and solicitation policies and procedures at your bank are in compliance with the necessary regulations.
- Understand the rules your bank must follow regarding issuance and reissuance of credit and debit cards.
- Understand the regulations regarding interest rates, fees and charges.
Implement compliant billing error resolution policies.
- Credit Card Applications, Solicitations, and Disclosures
o Rate information
o Fees for issuance or availability
o Fixed finance charges; minimum interest charge
o Transaction charges
o Grace period
o Balance computation method
o Charges and fees
o Required insurance, debt cancellation or debt suspension coverage
o Available credit
o Direct mail and electronic applications and solicitations
o Telephone applications and solicitations
o Applications and solicitations made available to the general public
o In person applications and solicitations
o Balance computation methods
o Web site reference
- Reissuance of Cards and the Red Flags Rules
o Issuing an additional or replacement card
o Alternative timing of address validation
o Form of notice
- Interest Rates, Fees and Charges
o Advance notice
o Limits on increases applicable to outstanding balances
o APR reduction
o Limitations on increases within the first year
o Promotional rates
o Limits on fees and interest charges
o Reasonable penalty fees
o Billing errors
o Time for resolution
o Rules for pending resolution
o Resolution procedures
o Creditor's rights and duties
o Reassertion of billing errors
o Setting credit limits
o Raising credit limits
o Solicited issuance
o Unsolicited issuance
o The timing of disclosures
o The required content of disclosures
o The disclosures that are required when an additional electronic fund transfer service is added
- Change in Terms Notice and Error Resolution Notice
o Change in terms notice
o Prior notice exception
o Error resolution notice
- Debit cards and overdrafts
o Standard overdraft practices
o Limits on Overdraft fees
o Overdraft protection plans
o Debit cards vs. prepaid debit cards
- Debit Cards vs. Prepaid Debit Cards