Today, we're answering questions about Itemization Dates, with assistance from John Bedard of Bedard Law Group, and Leslie Bender of Clark Hill.
At what point is the "itemization date" determined and how?
The collector may choose one of five different dates as the itemization date: the last statement date, the charge-off date, the last payment date, the judgment date, and the transaction date. This date must be chosen on or before the date on which the validation notice is sent to the consumer, and cannot be changed once chosen. (For reference, see pages 95-111 of Reg F Part II for commentary; see pages 339-340 for definitions; see -342-347 for the rule.)
The itemization date(s) do not to be provided in subsequent communications.
For administrative ease your agency may choose to create simple documentation about Reg F with some recommendations to creditors about a logical date. To illustrate: If your creditors generally place an account on the date they select as a “charge off” date per their accounting strategies, knowing and confirming this may simplify your recordkeeping and reduce consumers’ confusion – especially if post-charge off costs or interest or other activities change at “charge off.”
We believe the "date" for the itemization on the Model Validation Notice, to be the last payment date. We've also heard others using charge off (which means nothing to the consumer). Do you feel one is preferred over the other?
The itemization date can be one of five possible dates: the last statement date, the charge-off date, the last payment date, the judgment date, and the transaction date. The best itemization date to choose is the one for which you can obtain the most consistent, reliable, and accurate data from the creditor client (which may be different for different clients), including the actual itemization of the debt from the Itemization Date forward (interest, fees, payments and credits).
Once you know what date you and your client(s) will select as the itemization date, develop training around that for both your support folks and consumer-facing folks so they understand it and can easily apply it to customers’ unique circumstances.
(For reference on itemization dates, see pages 95-111 of Reg F Part II for commentary; see pages 339-340 for definitions; see -342-347 for the rule.)
Date of Placement is not one of our options for the itemization date, right?
Correct: placement date is not one of the five possible options for the itemization date. (Those options are: the last statement date, the charge-off date, the last payment date, the judgment date, and the transaction date.)
There may be instances where the date of placement coincides with one of the five possible options. And nothing precludes a creditor from “placing” accounts on their “charge off” date and “charge off” date is an option for the itemization date.