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Can you summarize SR 03-1?
Supervision and Regulation Letters - 2003 > Account Management and Loss Allowance Methodology for Credit Card Lending
Short Summary
This document, issued by the Board of Governors of the Federal Reserve System, provides supervisory account management and loss allowance guidance for credit card lending. It applies to banking organizations supervised by the Federal Reserve that engage in credit card lending. The guidance clarifies expectations regarding account management, risk management, and loss allowance practices for credit card lending. It covers topics such as credit line management, over-limit practices, minimum payments and negative amortization, workout and forbearance practices, as well as reporting requirements related to income recognition and loss allowance practices. The final guidance differs from the draft guidance issued earlier, particularly in terms of workout programs aiming for borrowers to repay credit card debt within 60 months. The document requests Reserve Banks to distribute it to the relevant banking organizations and supervisory staff.
Whom does it apply to?
Banking organizations supervised by the Federal Reserve that engage in credit card lending
What does it govern?
Account Management and Loss Allowance Methodology for Credit Card Lending
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
U.S. Federal Government