Regulation Z: Payment Processing
Deciphering the specific requirements for crediting consumer loan payments as required by Regulation Z (Truth in Lending) can be a challenge. Not only do the requirements differ for closed-end loans secured by a dwelling, open-end lines or credit and credit cards, they can also differ depending on whether you have a conforming or non-conforming payment. A conforming payment is one that is received within certain parameters, or requirements, set forth by an institution in the written payment instructions disclosed in the contract or periodic statement. For example, an institution could specify a reasonable cut-off time for a payment to be received, require that payments be accompanied by the account number or a payment stub, specifying a specific address for receiving payments by mail, etc. Anything outside such parameters would be a non-conforming payment.
Kevin explains more in the video.
Published
2025/07/10

Kevin Edwards
Kevin brings years of experience and a unique perspective on regulatory matters to our clients. A self-proclaimed geek and accredited CRCM, Kevin is also a recovering attorney with experience as in-house counsel for a large regional bank and one of the leading national title insurance providers. For reasons unknown, Kevin decided to leave the safety and serenity of his desk job to seek fortune and glory as a wandering adventurer. Like a bank compliance version of Kwai Chang Caine, The Man with No Name or Don Quixote, he now travels the land seeking to help those in need and righting compliance wrongs, wherever he may find them. Kevin lives in Sioux Falls with his two children, who are surprisingly normal after having endured their father’s vivid imagination for their entire lives. He won’t admit to having any hobbies, because apparently “Regulations never sleep.” (While he does say this in his Batman voice, we’re pretty sure he’s joking.) From the looks of his Facebook page, he likes the outdoors and spending time with his large extended family (who seem like relatively normal people).