Loan Change FAQ's

1. Why is this happening? The Federal Reserve Board (FRB) has issued a ruling effective October 1, 2011 requiring all open-end loans to have a 14 day notice before a payment is due. All loans, with the exception of fixed rate home mortgage loans and Business loans at Alcoa Tenn Federal Credit Union (ATFCU) are open-end. Thus, we were required to make these changes to comply with this regulation.
   
   

2. What loans are considered open-end loans? New or used autos, boats, RVs, savings or certificate secured loans, signature loans, personal line-of-credit, and home equity line-of-credit.
   
   

3. My loans are on payroll deduction/automatic transfer/paid through direct deposit. How will this be affected? If your loans are automatically paid through payroll deduction, direct deposit, or an automated transfer, you do not need to do anything. Your payments will continue as always, whether they are set up as weekly, biweekly, twice a month, or monthly.
   
   

4. I mail a check each month to pay my loan, how will I be affected? There will be no change; you may continue to send your check monthly to pay your loan.
   
   

5. Will my interest rate change? No, your interest rate will remain the same.
   
   

6. How will this change affect the amount of interest due on my loan? This change will not effect your interest on your loan, all loans accrues daily interest. For example, if your loan is paid bi-weekly, each payment includes 14 days of interest. If you pay your loan monthly on the same day, you usually pay 30 or 31 days of interest each month, depending on the number of days between payments.
   
   

7. Will this affect my credit report or rating? As long as you continue to make your regularly scheduled payments there will be no negative effect on your credit report or rating.
   
   

If you have additional questions or wish to discuss this further, please contact the ATFCU at 865-977-3118 or toll free 1-800-404-6008