Compliance Q&A: Open-end Credit Card Considerations

Question: For an open-end credit card account, can a due date on the monthly billing statement vary if the usual due date is a Sunday? Example: The due date is usually the 12th of every month. However, 9/12/21, is a Sunday, therefore, the billing statement reflects the due date as 9/13/21 this month.

Answer: The answer to this question depends on how the bank determines their due date. The regulation provides the following requirements:

“6. Same day each month. The requirement that the due date be the same day each month means that the due date must generally be the same numerical date. For example, a consumer’s due date could be the 25th of every month. In contrast, a due date that is the same relative date but not numerical date each month, such as the third Tuesday of the month, generally would not comply with this requirement. However, a consumer’s due date may be the last day of each month, even though that date will not be the same numerical date. For example, if a consumer’s due date is the last day of each month, it will fall on February 28th (or February 29th in a leap year) and on August 31st.

7. Change in due date. A creditor may adjust a consumer’s due date from time to time provided that the new due date will be the same numerical date each month on an ongoing basis. For example, a creditor may choose to honor a consumer’s request to change from a due date that is the 20th of each month to the 5th of each month or may choose to change a consumer’s due date from time to time for operational reasons. See comment 2(a)(4)-3 for guidance on transitional billing cycles.”

Regulation Z, § 1026.7(b)(11), Comment 6 –

“(A) The due date for a payment. The due date disclosed pursuant to this paragraph shall be the same day of the month for each billing cycle.”

Regulation Z, § 1026.7(b)(11)(i)(A) –

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