Recently, Congress enacted the Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit CARD Act). The Act is designed to prohibit certain practices that are considered to adversely affect consumers. The provisions of this act apply to credit cards and open end loans. Majority of the loans at Entrust FCU are considered "open end loans" because we use the LOANLINER open end document to process your loan requests such as personal and vehicle loans.

While Entrust Federal Credit Union did not participate in any of the prohibited practices, two of the specific provisions will affect your loans at the credit union as of August 20, 2009:

A change in terms, such as your interest rate, will require 45 days notice before the change can be effective.

Periodic statements that contain information for an open end loan must be mailed 21 days prior to the due date.

Currently, many of our members pay their loans on a weekly, bi-weekly or semi-monthly payment schedule. In order to comply with the Credit CARD Act, all Entrust FCU loans that are considered "open end" except VISA credit cards will have a monthly due date of the 28th of each month effective September 2009. (If you have a student loan, business loan, closed-end home equity loan or first mortgage with Entrust, your due date for those loans will not change.) Since we offer a combined statement, conveniently consolidating all of your accounts, this serves as your payment due date notice each month and therefore must be mailed 21 days prior to that due date. Your VISA credit card statement will continue to be mailed separately.

We are committed to complying with the Credit CARD Act with little or no inconvenience to our members.

Attached, please find more information regarding the Credit CARD Act provisions. Should you have any questions, please feel free to contact our Lending Specialist at 804-353-8012, 800-944-3622 or loans@entrustfcu.com.

Frequently Asked Questions

Why did Congress enact the Credit CARD Act?
To prevent some practices by credit card issuers that were considered to adversely affect consumers, such as universal default rates, excessive fees and misleading terms. Entrust Federal Credit Union did not participate in any of these practices.

How will this affect my accounts?
The only accounts that are affected are open end loan accounts. You will continue to receive a separate statement for your credit union VISA accounts that will include the due date. Student loans, closed-end home equity loans, business loans and first mortgage due dates will not change.

What are Open End loans other than credit cards?
Open end lending plans require that a credit agreement is signed at the inception of the plan. Future loan advances under this type of plan may not require a signature. Entrust Federal Credit Union has offered open end lending for many years based on the convenience it allows for our members. The following loan types fall under an open end lending plan at Entrust Federal Credit Union:

Personal Loans

Lines of Credit

Overdraft Loans

Vehicle/Boat/RV/ Motorcycle loans

Home Equity Line of Credit

Stock/Share/Certificate Secured Loans

The following loans are considered "closed end" or are not affected by the Credit CARD Act:

First Mortgage Loans

Student Loans

Business Loans

Closed-End Home Equity Loans

When will my loan payment be due?
Your loan payment will be changed to the 28th of each month beginning in September 2009. The following exceptions apply:

If your loan is already scheduled for monthly payments due on the 28th of the month, your due date will not change.

For VISA credit cards, please see your monthly billing statement for the payment due date.

First mortgage, student loan, closed-end home equity loan and business loan payment due dates are not changing.

Your payments due in August will not be affected and will still be due as scheduled.

What if I make my payments through payroll deduction or direct deposit and my payments are due weekly, bi-weekly or semi-monthly?
We will convert your payment amount to a monthly payment, however, you can continue to make payments through payroll deduction or direct deposit. Continuing to make payments at your current frequency will benefit you. Since each payment reduces the principle amount, you will effectively pay less interest if you make payments according to your current schedule.

If my loan is currently paid ahead, will it remain paid ahead?
Yes. We will be moving due dates to the 28th of the month in which your current loan payment is due. For example, if on September 1 your due date is 12/3/09 we will move your loan payment to 12/28/09 rather than 9/28/09.

Can I help reduce the expense of this to the credit union?
Absolutely. The credit union is trying to minimize the cost of complying with these new regulations, while still offering the same great quality service and care our members expect. You can help Entrust by signing up for e-Statements instead of receiving your statement in the mail each month. Our e-Statements contain the same information as the paper statements, but reduce our costs by eliminating the processing, printing, handling, and shipping expenses associated with the paper version. They also help protect your account information by being integrated into our On-line Banking and eliminating the amount of personal information mailed. You will be notified each month with an email that your statement is ready and you can download it through the same On-line Banking system you are familiar with today. Simply enroll in e-Services, (which is available in On-line Banking) to begin receiving e-Statements.

Who do I call if I have questions?
Our staff will be glad to assist you through this transition. We will do everything possible to insure a smooth conversion to your monthly loan payments. Please do not hesitate to contact our Lending Specialist at 804-353-8012, 800-944-3622, or loans@entrustfcu.com if you have any questions.