{"id":2664,"date":"2021-10-27T23:17:46","date_gmt":"2021-10-27T23:17:46","guid":{"rendered":"https:\/\/albanknews.com\/?p=2664"},"modified":"2021-10-27T23:18:38","modified_gmt":"2021-10-27T23:18:38","slug":"2664","status":"publish","type":"post","link":"https:\/\/albanknews.com\/?p=2664","title":{"rendered":"Compliance Q&#038;A: HELOC and an Access Device"},"content":{"rendered":"<p><strong>Question<\/strong>: Can a bank provide an access device for a home equity line of credit (HELOC)?<\/p>\n<p><strong>Answer<\/strong>: This is permissible, with several risk considerations for the bank. Under Regulation Z, \u00a7 1026.2(a)(15)(ii), a debit card that can access a HELOC is a credit card. Additionally, \u00a7 1026.12(d)(1), further prohibits the bank from exercising the right of setoff for credit card balances. Therefore, whereas a HELOC without a credit card generally provides a right of setoff, subject to certain requirements, the bank loses this right when providing a debit card to access a HELOC.<\/p>\n<p>Regulation Z, \u00a7 1026.2(a)(15) \u2013 <u><a href=\"https:\/\/www.consumerfinance.gov\/rules-policy\/regulations\/1026\/2\/#a-15-ii\">https:\/\/www.consumerfinance.gov\/rules-policy\/regulations\/1026\/2\/#a-15-ii<\/a> <\/u><\/p>\n<p>Regulation Z, \u00a7 1026.12(d) \u2013 <u><a href=\"https:\/\/www.consumerfinance.gov\/rules-policy\/regulations\/1026\/12\/#d\">https:\/\/www.consumerfinance.gov\/rules-policy\/regulations\/1026\/12\/#d<\/a><\/u><\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<p><strong>Compliance Alliance offers a comprehensive suite of compliance management solutions. <\/strong>To learn how to put them to work for your bank, call (888) 353-3933 or email <a href=\"mailto:info@compliancealliance.com\">info@compliancealliance.com<\/a> and ask for our Membership Team.<\/p>\n<p><strong>Not a member?<\/strong> Learn more about membership with Compliance Alliance by attending one of our live demos:<\/p>\n<ul>\n<li><a href=\"https:\/\/compliancealliancemeetings.webex.com\/webappng\/sites\/compliancealliancemeetings\/meeting\/info\/33725ea06ce84323a9ea3bd7c7374270\">Live Demo on Tuesday,\u00a0November 2<sup>nd<\/sup> at 10:00 am CT<\/a><\/li>\n<li><a href=\"https:\/\/compliancealliancemeetings.webex.com\/webappng\/sites\/compliancealliancemeetings\/meeting\/info\/461096c141c642af81b701dc6ed9670b\">Live Demo on Thursday,\u00a0November 4<sup>th<\/sup> at 1:00 pm CT<\/a><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Question: Can a bank provide an access device for a home equity line of credit (HELOC)? Answer: This is permissible, with several risk considerations for the bank. Under Regulation Z, \u00a7 1026.2(a)(15)(ii), a debit card that can access a HELOC is a credit card. Additionally, \u00a7 1026.12(d)(1), further prohibits the bank from exercising the right of setoff for credit card balances. Therefore, whereas a HELOC without a credit card generally provides a right of setoff, subject to certain requirements, the bank loses this right when providing a debit card to access a HELOC. Regulation Z, \u00a7 1026.2(a)(15) \u2013 https:\/\/www.consumerfinance.gov\/rules-policy\/regulations\/1026\/2\/#a-15-ii Regulation [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1070,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[19,33,23],"tags":[],"class_list":["post-2664","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking","category-compliance-qa","category-publications","has_thumb"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/albanknews.com\/wp-content\/uploads\/2017\/11\/compliance-alliance.png?fit=800%2C800&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/s4Y3P2-2664","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/posts\/2664","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/albanknews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2664"}],"version-history":[{"count":2,"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/posts\/2664\/revisions"}],"predecessor-version":[{"id":2667,"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/posts\/2664\/revisions\/2667"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/media\/1070"}],"wp:attachment":[{"href":"https:\/\/albanknews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2664"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/albanknews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2664"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/albanknews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2664"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}