Dictionary of Banking Terms: written notice
written notice
- consumer protection clause in the truth in lending actstating that consumers have to be notified in writing of any changes in credit terms. This notice may be included in the periodic billing statement, as for example, a change in the method of computing the interest rate in a credit card account. A change in rate applies to the entire balance owed and new purchases, once notification is given and the customer continues to use the account, unless state law says otherwise.See also Regulation B; Regulation Z.
- notice that banks may legally require from customers before paying draft from a Negotiable Order Of Withdrawal (NOW) Account account. See also notice of withdrawal.
