The Federal Financial Institutions Examination Council (FFIEC) has revised the Uniform Retail Credit Classification and Account Management Policy issued in 1980. The amendments update and expand the classification policy for retail credit loans. The amended policy is attached. The revised policy retains and clarifies a requirement that open-end loans, such as credit card balances, that are 180 days or more overdue should be charged off. Closed-end loans, such as installment loans, should be charged off after they are 120 days delinquent. Previous policy guidance had been interpreted and applied inconsistently. In addition, the federal financial institution regulators adopted the following new guidance:
The policy also details criteria that must be met before banks and thrifts may consider a delinquent open-end account current, such as the process of account re-aging, extension, and deferral. For an account to be eligible for re-aging, it must meet the following conditions:
For further information, please contact your Division of Supervision Regional Office or James Leitner, Examination Specialist, at (202) 898-6790.
Attachments: Feb. 10, 1999
Federal Register
, Vol. 64, No. 27, pages 6655-6659
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Distribution: FDIC-Supervised Banks (Commercial and Savings) NOTE: Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 801 17th Street NW, Room 100, Washington, DC 20434 (800-276-6003 or (703) 562-2200). |