In the consumer loan context, one issue that frequently arises
between creditors and debtors is whether the debtor has made a
timely payment on his or her account. Both the Truth in Lending Act
("TILA") and Regulation Z, which implements TILA, speak
to this issue, but appear to contradict each other when it comes to
credit card accounts.
Under Regulation Z,
[i]f a creditor accepts or receives payments made on the due
date by a method other than mail, such as electronic or telephone
payments, the creditor is not required to treat a payment made by
that method on the next business day as timely, even if it does not
accept mailed payments on the due date.
12 C.F.R. § 226.10(d)(2). Thus, if the due date falls on a
holiday or weekend, but the creditor refuses to acknowledge
payments received by mail on the following business day, then the
creditor need not consider payments made online or via the
telephone the following business day as timely.
