---
title: "Change-in-Terms Notice Review AI Agent | Kolena"
url: "/agent-library/change-in-terms-review/"
description: "A pre-built AI agent from Kolena that tests a credit card change-in-terms notice against Reg Z: 45-day notice, right to reject, disclosures."
updated: 2026-08-11T20:54:34+00:00
---

# Change-in-Terms & Cardholder-Agreement Review

Test a credit card change-in-terms notice against Regulation Z: every changed term summarized, the 45-day advance-notice window and right-to-reject verified, penalty rate increases justified and reevaluation-eligible, and every required disclosure present and cited.

## Impact

Notice-by-notice change-in-terms disclosure testing - term capture, 45-day timing, right-to-reject, rate-increase justification, and template reconciliation - that took manual line-by-line template review compressed to minutes per notice at portfolio scale, with every result cited to the governing subsection (per notice)

## What it extracts

- **Notice and Account Summary** — The identifying spine of the review - the account/program identifier, document type, change categories, notice and effective dates, delivery method, and confirmation the plan is an open-end (not home-secured) credit card account - so a reviewer can orient before the analysis.
- **Change Summary** — A fixed summary of the specific terms the notice changes - purchase / cash-advance / balance-transfer / penalty APRs, minimum-payment terms, the fee schedule, grace period, and balance-computation method - captured as prior-to-new where the prior value is shown (12 CFR 1026.6(b)(2), 1026.9(c)(2)).
- **Notice Type and Advance-Notice Requirement** — The threshold determination - whether the notice is a significant change in terms (1026.9(c)(2)), a penalty / delinquency rate increase (1026.9(g)), or an account-opening disclosure, and whether 45-day advance notice is required or exempt under a 1026.9(c)(2)(v) carve-out.
- **Advance Notice Timing (45-Day Rule)** — The core timing test - calendar days from notice to effective date and whether the 45-day advance-notice window is met (1026.9(c)(2)(i)(A) for a term change, 1026.9(g)(1) for a penalty rate increase), or Not applicable where advance notice is not required.
- **Right to Reject Assessment** — Whether the change is subject to the consumer's right to reject and whether the notice discloses it and the post-rejection protections (1026.9(h), 1026.9(c)(2)(iv)(B)), including the 60-day-delinquency exception.
- **Rate Increase Justification and Re-Evaluation** — For a rate increase, whether the reason is disclosed (1026.9(g)(3)(i)), whether the increase fits a CARD Act exception (1026.55), and whether it triggers the six-month reevaluation obligation (1026.59) or its delinquency carve-out.
- **APR, Fee, and Grace-Period Disclosures** — An inventory of the required rate, fee, grace-period, and balance-computation disclosures (1026.6(b)(2)) with the disclosed value for each, one row per item, so a reviewer can see completeness at a glance.
- **Required Disclosure Checklist** — The required-content checklist - one row per required element of the notice type (1026.9(c)(2)(iv) for a term change, 1026.9(g)(3) for a penalty increase, 1026.6(b) for an agreement) marked Present, Missing, Partial, or Not applicable with the cited subsection and location.
- **Disclosure Consistency Check** — The notice reconciled against the institution's required-disclosure master template (or, absent one, its own internal consistency), one row per disclosure marked Match / Mismatch / Not found with discrepancy notes, treating placeholder number-fills and approved variants as matches.
- **Compliance Determination** — The single overall disposition for the notice - compliant, or the specific violation type (timing, missing disclosure, right-to-reject, rate-increase justification/reevaluation, template inconsistency, multiple, or incomplete).
- **Compliance Exceptions Log** — The exception log - one row per timing miss, missing or deficient disclosure, right-to-reject gap, unjustified rate increase, or template inconsistency, each with the cited rule, a severity, the detail, and a concrete corrective action.

## Where it fits

- **Process** — Consumer-credit regulatory compliance testing
- **This step** — Change-in-terms / cardholder-agreement disclosure compliance review - term-change capture, 45-day advance-notice timing, right-to-reject verification, rate-increase justification and reevaluation, required-content checklist, and template reconciliation
- **Upstream** — Change-in-terms notice drafting - a CIT notice, penalty-rate notice, or cardholder agreement produced by the disclosure / legal / servicing team ahead of a scheduled effective date, together with the institution's required-disclosure master template
- **Downstream** — Issue / exception tracking and remediation before the notice mails; Rate-increase reevaluation scheduling (1026.59 six-month reviews); Regulatory reporting and examination preparation

## What it needs

### Documents
- Change-in-terms (CIT) notice
- Penalty / delinquency rate-increase notice
- Cardholder agreement / account-opening disclosures
- Prior notice or current agreement (for prior-value comparison)
- Required-disclosure master template

### Systems
- Disclosure / document-generation system
- Document repository
- Compliance testing / QA platform

### Prerequisites
- The change-in-terms notice (or cardholder agreement) under review
- Your institution's required-disclosure master template or approved wording, for the consistency check
- Any prior notice or current agreement needed to capture prior-versus-new values

## What it produces

A per-notice compliance record - the changed-term summary, the 45-day advance-notice timing test, the right-to-reject assessment, the rate-increase justification and reevaluation check, the required-disclosure checklist, a notice-versus-template consistency table, an overall compliance determination, and a cited exceptions log

### Destinations
- Compliance exception / remediation queue
- Rate-increase reevaluation tracker
- Audit / exam evidence file

## Review model

A compliance analyst reviews each flagged exception, the timing math, and the cited subsection before a notice is cleared to mail or escalated for correction.

## Who uses it

- Compliance Testing Analyst
- Consumer Compliance Analyst
- Regulatory Compliance Manager
- Internal Audit Reviewer
- Compliance Officer

## Volume fit

- **Works best for** — compliance and internal-audit teams testing many change-in-terms notices, penalty-rate notices, and agreement variants across a card portfolio each cycle
- **Too small for** — a one-off review of a single notice with no repeatable disclosure volume

## Grounded in

- 12 CFR 1026.9(c) (Change-in-terms notice; significant change in account terms - 45-day advance notice) _(verified 2026-07-22)_
- 12 CFR 1026.9(g) (Increase in rates due to delinquency or default or as a penalty) _(verified 2026-07-22)_
- 12 CFR 1026.9(h) (Right to reject a significant change in terms) _(verified 2026-07-22)_
- 12 CFR 1026.6 (Account-opening disclosures - required agreement content) _(verified 2026-07-22)_
- 12 CFR 1026.55 (Limitations on increasing APRs, fees, and charges - CARD Act) _(verified 2026-07-22)_
- 12 CFR 1026.59 (Reevaluation of rate increases - six-month review) _(verified 2026-07-22)_

## Provenance

based on a production deployment at a consumer lending & card issuer