Only credit card issuers—not other open-end creditors—are subject to the Truth in Lending Act requirement that periodic statements be mailed or delivered at least 21 days in advance of the payment due date, as a result of recently-signed legislation.

Congress overwhelmingly approved the Credit CARD Technical Corrections Act of 2009, and President Obama signed it on November 6, 2009. The Act was effective immediately.

The correction resulted in large part from strong lobbying by credit unions, who focused Congressional attention on the significant operational difficulties the requirement imposed on many providers of open-end credit other than credit cards.

The 21-day requirement initially became effective for all open-end creditors on August 20, 2009, pursuant to an interim final Regulation Z rule adopted by the Federal Reserve Board. Given that Congress has now made it clear that it intends the requirement to apply only to credit cards, we think it highly unlikely that the Fed will retain the regulatory requirement for all open-end credit. Nevertheless, because the 21-day rule in Regulation Z currently applies by its terms to all open-end credit, providers of non-credit card open-end credit will be at some risk if they choose not to comply during the interim period before new Fed action on the rule (which is expected by year-end).

Ballard Spahr's Consumer Financial Services Group is nationally recognized for its guidance in structuring and documenting new consumer financial services products, its experience with the full range of federal and state consumer credit laws throughout the country, and its skill in litigation defense and avoidance (including pioneering work in pre-dispute arbitration programs). For more information, please contact group Chair Alan S. Kaplinsky, 215.864.8544 or; Vice Chair Jeremy T. Rosenblum, 215.864.8505 or; John L. Culhane, Jr., 215.864.8535 or; Barbara S. Mishkin, 215.864.8528 or; or Mark J. Furletti, 215.864.8138 or

Copyright © 2009 by Ballard Spahr LLP.
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