What if due date is not busn day?

Considering closed-ended credit loans for which Reg Z (Truth in Lending) applies, is there a standard way to determine the payment date when it would normally fall on a non-business day?

For example, consider payments due monthly starting on 8 Apr 2010 (Thu). Ostensibly, the next payment would be due on May 8 (Sat). Assuming business days are Mon-Fri, should the payment be due on the last business day before (Fri, May 7) or on the first business day after (Mon, May 10)?

Is that left up to the business to decide? Or is there a standard (by custom, regulation or whatever) that dictates the answer?

I have not (yet) found anything specific in Reg Z. But I'm not sure that is the only place to look.

The only relevant statement that I find (so far) in Reg Z is Sec 226.17(c)(3)(ii), which pays lip-service to the situation, stipulating: "The creditor may disregard the effects of the following in making calculations and disclosures[: ...t]hat dates of scheduled payments and advances may be changed because the scheduled date is not a business day".

Reply to
WhatsUp
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You have asked a legal, not a tax question. Since I am not a lawyer I will answer anyway. :)

For consumer credit cards, my understanding is a late fee cannot now be assessed when the payment due date is a weekend or holiday and the payment is received by the next business day. Everything else probably depends upon the contract between the borrower and the lender.

Reply to
Bill Brown

Mea culpa! Yes, I did use the wrong link when I submitted the posting. But....

Thanks for that. And especially thanks for reminding me that there is recent legislation that might be relevant to my question. I have not been paying close attention to it. I guess I need to :-(.

Reply to
WhatsUp

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