CARD Act
Printer Friendly Version
New Monthly Billing Statement
Dear Merrick Bank Customers,
It is important to us that we provide you with timely information regarding your
Merrick Bank Visa® or MasterCard® credit card account.
To meet the requirements of the new CARD Act law, your credit billing statement
will include a lot more information than what you're used to. Part of the new law
requires additional disclosures regarding rates, fees, and other information. To
help clarify these changes, we have written some general Questions and Answers that
we hope you find helpful.
As always, thank you for being a valued Merrick Bank customer.
Sincerely,
Richard Urrutia,
President, Merrick Bank
FREQUENTLY ASKED QUESTIONS
-
Why did the format of my billing statement change?
-
Why is there a late payment warning message? I did not pay late.
-
I don't understand the Minimum Payment warning. What does it mean?
-
I am confused about how much to pay on my account. The Minimum Payment due and the
Amortized Payment Amount are different--and the Amortized Payment Amount is less.
Which do I pay?
-
Why is the Amortized Payment Amount lower than my Minimum Payment Amount due. Please?
-
Why did my payment due date change?
-
What will my new statement look like? Where is the new information?
-
Why did you include a consumer credit counseling phone number? I do not need this.
-
What is the CARD Act?
Questions and Answers:
- Q: Why did the format of my billing statement
change?
A. To meet the requirements of the CARD Act, information
contained in your statement had to be provided in a certain format.
Top of Page
- Q: Why is there a late payment warning message?
I did not pay late.
A. The late payment warning is a standard message
that is required to appear on all billing statements. This is to let you know that
if your minimum payment is not paid on time, a late fee may be charged to you.
Top of Page
- Q: I don't understand the Minimum Payment
warning. What does it mean?
A. The minimum payment warning is a standard message
that is required on all billing statements, The warning is letting you know that
if you only pay the Minimum Amount Due each month, you will pay more in interest
and it will take longer to pay off your balance. You can always pay more than your
minimum payment which will reduce the amount of interest you pay and the time it
takes to pay off your balance.
Top of Page
- Q: I am confused about how much to pay on
my account. The Minimum Payment due and the Amortized Payment Amount are different--and
the Amortized Payment Amount is less. Which do I pay?
A. We understand there is some confusion about how
much you have to pay each month with the two figures. The required amount owed each
month, as outlined in your Cardholder Agreement, is the Minimum Amount Due. This
is the amount that needs to be paid that keeps your account in good standing. So,
even though the Amortized Payment Amount is showing a lower payment amount, this
is not the same as what is required to pay–your minimum payment. You can always
pay more than your minimum payment which will reduce the amount of interest you
pay and the time it takes to pay it.
Top of Page
- Q: Why is the Amortized Payment Amount lower
than my Minimum Payment Amount due. Please?
A. These two payments use different calculations.
The Amortized Payment amount has the assumption that your balance will not change
and that you will make equal payments for the time period indicated. The Minimum
Payment Amount due has to account for other factors, such as payments based on a
percent of your balance.
Top of Page
- Q: Why did my payment due date change?
A. Your payment due date changed as a result of the
requirement to provide at least 21 days notice before your due date and that your
due date be on the same day every month.
Top of Page
- Q: What will my new statement look like?
Where is the new information?
A. Below we have outlined the top 5 items that are
new/different to your billing statement.
|
|
1.
|
The number of months it will take to repay your balance if only the minimum payment
is made;
|
|
2.
|
The total cost of making minimum only payments based on your current interest rate;
|
|
3.
|
The monthly payment required to repay your balance within 36 months along with the
total amount of interest and principal paid on a 36-month repayment plan if required;
|
|
4.
|
A toll free number where you can call about consumer credit counseling; and
|
|
5.
|
Summary of total fees and interest paid to date during the current billing cycle
and year to date.
|
|
Top of Page
- Q: Why did you include a consumer credit
counseling phone number? I do not need this.
A. We included a consumer credit counseling number
to meet the CARD ACT requirement. This number does not mean that you are enrolled
or have to enroll in consumer credit counseling.
Top of Page
- Q: What is the CARD ACT?
A. The CARD Act or the "Card Accountability Responsibility
Disclosure Act" is legislation that Congress passed and the President signed on
May 22, 2009. The CARD Act was not effective when it was signed but contained several
effective dates. The first one was August 20, 2009 the second effective date is
February 22, 2010. The Act has caused banks, including Merrick, to change some of
their policies and practices. We and our vendors are working diligently to make
necessary changes and are confident we will have them in place by the required effective
dates.
Top of Page