We believe a bank may offer a “skip-a-payment” option using a generic offer form, and we are not aware of any laws that would require you to include borrower-specific information in such a form. Of course, we recommend verifying the information that borrowers provide on the forms against your bank’s files.

Also, we are aware that some banks combine the skip-a-payment offer form with other information, such as a periodic statement or disclosures related to the skip-a-payment program (such as a change in terms notice for open-end credit, if required). If your bank does decide to use a combined skip-a-payment offer, any other information combined with the offer may have to be customized to fit the borrower’s loan type, for example.

For more information on this subject and other practical considerations, we recommend reading the IBA’s “Skip-a-Payment” Programs: Pitfalls and Concerns article, which is available on GoToIBA.com.

For resources related to our guidance, please see:

• NCUA, Skip-A-Payment Disclosures (March 2006) (“The disclosure rules for open-end credit differ from the disclosure rules for closed-end credit . . . A credit union’s addition of an option to defer or skip a payment to an open-end loan after giving the initial disclosures may trigger additional disclosure requirements. No additional disclosures are necessary if the credit union adds the feature within 30 days after providing the initial disclosures, and the finance charge is the same . . . The member must receive additional disclosures before using the option for the first time if the credit union adds the option after the 30 days, and it is not part of a renewal, resupply, or the original extension of credit . . . The credit union may combine these disclosures with the skip payment offer . . . Skip payment offers for closed-end credit after the initial extension of credit do not require additional disclosures. Regulation Z only requires subsequent disclosures if: (1) initial disclosures are rendered inaccurate before the consummation of the loan; (2) the loan involves certain residential mortgages and variable rate transactions; or (3) a member refinances, assumes, or incurs a variable rate adjustment to closed-end credit.”)

• Regulation Z, Subpart B – Open End Credit, 12 CFR 1026.9(b)(1) (“If a creditor, within 30 days after mailing or delivering the account-opening disclosures . . . adds a credit feature to the consumer’s account . . . for which the finance charge terms are the same as those previously disclosed, no additional disclosures are necessary.”)

• Regulation Z, Subpart B – Open End Credit, 12 CFR 1026.9(c)(2)(i) (“For plans other than home-equity plans . . . when a significant change in account terms as described in paragraph (c)(2)(ii) of this section is made, a creditor must provide a written notice of the change at least 45 days prior to the effective date of the change to each consumer who may be affected.”)

• Regulation Z, Subpart B – Open End Credit, 12 CFR 1026.9(c)(2)(ii) (“For purposes of this section, a “significant change in account terms” means a change to a term required to be disclosed under § 1026.6(b)(1) and (b)(2), an increase in the required minimum periodic payment, a change to a term required to be disclosed under § 1026.6(b)(4), or the acquisition of a security interest.”)

• Regulation Z, Subpart B – Open End Credit, Official Interpretations, Paragraph 9(c)(2), Comment 4 (“If a creditor adds a feature to the account on the type of terms otherwise required to be disclosed under § 1026.6, the creditor must satisfy . . . any applicable requirement to provide a change-in-terms notice under § 1026.9(c), including any advance notice that must be provided.”)

• Regulation Z, Subpart C – Closed End Credit, Official Interpretations, Paragraph 17(c)(1), Comment 2 (“The legal obligation normally is presumed to be contained in the note or contract that evidences the agreement between the consumer and the creditor. But this presumption is rebutted if another agreement between the consumer and creditor legally modifies that note or contract. If the consumer and creditor informally agree to a modification of the legal obligation, the modification should not be reflected in the disclosures unless it rises to the level of a change in the terms of the legal obligation. For example . . . iii. If the contract provides for regular monthly payments but the creditor informally permits the consumer to defer payments from time to time, for instance, to take account of holiday seasons or seasonal employment, the disclosures should reflect the regular monthly payments.”)

• Regulation Z, Subpart E – Special Rules for Certain Home Mortgage Transactions, 12 CFR 1026.40(f) (“No creditor may, by contract or otherwise: . . . (3) Change any term, except that a creditor may: . . .

(iii) Make a specified change if the consumer specifically agrees to it in writing at that time.

(iv) Make a change that will unequivocally benefit the consumer throughout the remainder of the plan.”

(v) Make an insignificant change to terms.”)