Timing requirements for periodic statements

Periodic statements are required for various types of accounts that credit unions offer. While sending a periodic statement is essential to ensuring compliance with the periodic statement requirements, it is also important to send it at the right time. Timing is also important because notice requirements for error resolution under Regulation E and billing errors under Regulation Z are, in part, dependent on when a periodic statement is sent.

For share accounts, such as savings and checking accounts, the periodic statement rules are in Regulation E. While section 707.6 of NCUA’s Truth in Savings regulation provides disclosure requirements for periodic statements, it does not actually require credit unions to provide statements. Instead, section 1005.9(b) of Regulation E requires statements for each month in which an electronic fund transfer is made to or from the account. Neither the rule nor the commentary provides a specific timing requirement for when the statement must be sent after the close of the month. Credit unions may want to review any applicable state law and account agreements to determine whether they impose any specific timing requirement. In the absence of any state law or contractual provision, it will be up to the credit union to determine when to provide the periodic statement. In making this determination, credit unions may also want to consider that the timeline for reporting errors does not begin until a periodic statement is sent.

The rules for certain lending products provide more clear timing requirements. Before diving in to these rules, it is important to note that Regulation Z only has a periodic statement requirement for closed-end mortgages. Credit unions are not required to provide statements for products such as personal loans, car loans or private education loans. For these loans, credit unions will need to look to state law or the loan agreement for any periodic statement requirements.

 

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