Some card processors say a few of their credit unions may have to slightly shorten July's credit card billing cycle to comply with the new credit card law.
The Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009 requirement for 21-day grace periods goes into effect in August of this year; card processors are working hard to make that happen.
"Working back from the due date we have to calculate when the billing cycle will have to close to allow us to get the accounts processed and statements printed and mailed," said Steve Salzer, the chief strategic, compliance and legal officer for PSCU Financial Services. Salzer explained that there may be some credit unions that face a slightly shorter July billing cycle in order to meet the compliance deadline.
Salzer and other processing executives outlined some of the other challenges they are helping credit unions meet, including advising them on how to set up Web sites that detail their card disclosures, to managing the way payments have to be applied to balances, and the detailed disclosures now required with all credit card statements.
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