§ 561.47 - Slow consumer credit.

The term slow consumer credit means closed-end consumer credit delinquent 90 to 119 days (4 monthly payments) and open-end consumer credit delinquent 90 to 179 days ( 4-to-6 zero billing cycles). For the purposes of computing delinquency, a payment of 90 percent or more of the contractual payment will be considered as a full payment. If an association can clearly demonstrate that repayment would occur regardless of delinquency status—for example, the loan is well-secured by collateral and is in the process of collection; the loan is supported by a valid guarantee or insurance; or it is a loan where the claims have been filed against a solvent estate—then such loan need not be classified as slow consumer credit. The following table illustrates the delinquency computation:

Closed-End Consumer CreditDue datePeriodDelinquency statusClassification3/103/10-4/09Not delinquent4/104/10-5/0930 days or 2 payments5/104/10-6/0960 days or 3 payments6/106/10-7/0990 days or 4 payments Slow. Open-End Consumer CreditStatementZero billingDayCycleDaysPayment recordDelinquentClass110 2301No payment53602No payment304903No payment6051204No payment90Slow.61505No payment120Slow.71806No payment150Slow.