See interpretation of 5(a)(2)(ii) Check printing fees. Part 1030 - Truth in Savings (Regulation DD) | Bankers Online For example, their Agreement states Under 1030.11(a)(1)(i), the disclosure must describe the total dollar amount for all fees or charges imposed on the account for the statement period and calendar year-to-date for paying overdrafts using the term Total Overdraft Fees. This requirement applies notwithstanding comment 3(a)-2.3. In a retail sweep program, an institution establishes two legally distinct subaccounts, a transaction subaccount and a savings subaccount, which together make up the consumer's account. 29(g)). A depository institution shall give advance notice to affected consumers of any change in a term required to be disclosed under 1030.4 (b) of this part if the change may reduce the annual percentage yield or adversely affect the consumer. 76, No. A depository institution shall give advance notice to affected consumers of any change in a term required to be disclosed under 1030.4(b) of this part if the change may reduce the annual percentage yield or adversely affect the consumer. 1026.24 Advertising. | Consumer Financial Protection Bureau An institution offering terms that will automatically change upon the occurrence of a stated event need not send an advance notice of the change provided the institution fully describes the conditions of the change in the account opening disclosures (and sends any change-in-term notices regardless of whether the changed term affects that consumer's account at that time). (3) Minimum balance. Although club accounts typically have a maturity date, they are not time accounts unless they also require a penalty of at least seven days' interest for withdrawals during the first six days after the account is opened.2. Part 707 of the NCUA Rules and Regulations implements the Truth in Savings Act of 1991 (TISA), contained in the Federal Deposit Insurance Corporation Improvement Act of 1991, 12 U.S.C. 1030.8(b) states that if an ad states a rate, it must state the APY and "may" state the interest rate. 3. An advertisement shall not: Official interpretation of 8 (a) Misleading or inaccurate advertisements. Disclosures) apply, however the Agreement and periodic statement don't specifically Regulation DD is the portion of the Truth in Savings Act that requires depository institutions to provide disclosures that detail account features and changes. A statement that fees could reduce the earnings on the account. 1. It includes time, demand, savings, and negotiable order of withdrawal accounts. See 1030.8(c). Is this a technical violation of Reg DD? paid if the account is closed, and refers to the APYE as "Statement Period If consumers have agreed to the transfer of payments from another account to a club time account for the next club period, the institution must comply with the requirements for automatically renewable time accounts - even though consumers may withdraw funds from the club account at the end of the current club period. For time accounts with a maturity longer than one year that do not renew automatically at maturity, institutions shall disclose to consumers the maturity date and whether interest will be paid after maturity. Fair lending laws. 1030.4 Account disclosures. This course concentrates on the advertising aspects of Regulation DD, including the disclosure rules for advertisements and prohibitions against unfair . Accounts opened by an executor in the name of a decedent's estate. 3. The term does not include interest, other consideration worth $10 or less given during a year, the waiver or reduction of a fee, or the absorption of expenses. Waived fees. Official interpretation of 2(h) Consumer. Online advertising can be an effective way to communicate quickly with current customers and members and also potential customers and members. 3501 et . - Min balance to obtain the APY (including info for each tier in tiered rate) (a) Administrative enforcement. The bonus rules are triggered, since consumers are eligible under the promotion to receive up to $28 during the year. Edge Act and Agreement corporations, and agencies of foreign institutions, are not depository institutions for purposes of this part. (l) Fixed-rate account means an account for which the institution contracts to give at least 30 calendar days advance written notice of decreases in the interest rate. ii. Paragraph (b)(1) of this section does not apply to advertisements for the payment of overdrafts on indoor signs as described by 1030.8(e)(2) of this part, provided that the sign contains a clear and conspicuous statement that fees may apply and that consumers should contact an employee for further information about applicable fees and terms. 4. For time accounts: (i) Time requirements. (2) Time annual percentage yield is offered. The termination of employment for consumers for whom account maintenance or activity fees were waived during their employment by the depository institution. Waiver or reduction of a fee or absorption of expenses. Please help us keep BankersOnline FREE to all banking professionals. (ii) If a sign exempt by paragraph (e)(2) of this section states a rate of return, it shall: (A) State the rate as an annual percentage yield, using that term or the term APY. The sign shall not state any other rate, except that the interest rate may be stated in conjunction with the annual percentage yield to which it relates. 461), except credit unions defined in section 19(b)(1)(A)(iv). Official interpretation of 2(k) Deposit broker. Effective date. Official interpretation of 2 (a) Account. See interpretation of 11(b) Advertising disclosures for overdraft services. 3. If an institution discloses balance information to a consumer through an automated system, the balance may not include additional amounts that the institution may provide to cover an item when there are insufficient or unavailable funds in the consumer's account, whether under a service provided in its discretion, a service subject to Regulation Z (12 CFR part 1026), or a service to transfer funds from another account of the consumer. This was a new fee added recently. iii. The aggregate fee disclosures required by paragraph (a) of this section must be disclosed in close proximity to fees identified under 1030.6(a)(3), using a format substantially similar to Sample Form B-10 in appendix B to this part. Securities or obligations of a depository institution. A date that is easily determinable, such as the Tuesday before the maturity date stated on this notice or as of the maturity date stated on this notice.. 1376 (2010). 1030.2 Definitions. | Consumer Financial Protection Bureau Rule Truth in Savings (Regulation DD) A Rule by the Consumer Financial Protection Bureau on 12/21/2011 Document Details Printed version: PDF Publication Date: 12/21/2011 Agency: Bureau of Consumer Financial Protection Dates: This interim final rule is effective December 30, 2011. in Supplement I. Trouble logging in? ii. Supplement I to Part 1030 - Official Interpretations. in Supplement I, Explore guides to help you plan for big financial goals, Supplement I to Part 1030 - Official Interpretations. Rate sheets in a newspaper, periodical, or trade journal (unless the depository institution, or a deposit broker offering accounts at the institution, pays a fee for or otherwise controls publication). How can I add someone to a deposit account? Official interpretation of 11(c) Disclosure of account balances. Other accounts. (2) No notice required. 1030.3 General disclosure requirements. Advertising Checklist | Bankers Online 2. What are the requirements for this? See also comment 11(c)-2. iv. in Supplement I. Covered accounts. in Supplement I, Explore guides to help you plan for big financial goals, Supplement I to Part 1030 - Official Interpretations. 2. 1030.1 Authority, purpose, coverage, and effect on state laws. 1030.8 Advertising; 1030.9 Enforcement and record retention. . Examples of accounts subject to the regulation are: i. Interest-bearing and noninterest-bearing accounts. See interpretation of 2(b) Advertisement. Retirement plans. 4. (c) Disclosure of account balances. Rather, institutions typically establish retail sweep programs by agreement with the consumer, in order for the institution to minimize its transaction account reserve requirements and, in some cases, to provide a higher interest rate than the consumer would earn on a transaction account alone. Additional disclosures in connection with the payment of overdrafts. From bankers. 1030.8 Advertising. Appendix B to Part 1030 Model Clauses and Sample Forms, Appendix C to Part 1030 Effect on State Laws, Appendix D to Part 1030 Issuance of Official Interpretations, Comment for 1030.1 Authority, purpose, coverage, and effect on state laws, Comment for 1030.3 - General Disclosure Requirements, Comment for 1030.5 - Subsequent Disclosures, Comment for 1030.6 - Periodic Statement Disclosures, Comment for 1030.9 - Enforcement and Record Retention, Comment for 1030.11 - Additional Disclosures Regarding the Payment of Overdrafts, Comment for Appendix A to Part 1030 - Annual Percentage Yield Calculation, Comment for Appendix B to Part 1030 - Model Clauses and Sample Forms. Pertaining to Reg DD and combined statements; Under 1030.6, a bank is not required to provide a periodic statement for CDs and IRAs. 1. Items with a de minimis value of $10 or less are not bonuses. Coverage (230.1) Regulation DD applies to all depository institutions, except credit unions, that offer deposit accounts to residents of any state. 2. Some institutions' statement periods do not coincide with the calendar month. Regulation DD, is issued by the Bureau of Consumer Financial Protection to implement the Truth in Savings Act of 1991 (the act), contained in the Federal Deposit Insurance Corporation Im-provement Act of 1991 (12 U.S.C. See interpretation of 11(a)(3) Format requirements. Accounts held by individuals as sole proprietors are not covered. Also, the FDIC rules for advertising are here. Please help us keep BankersOnline FREE to all banking professionals. For example, the institution may state that the balance includes overdraft funds. Where a consumer has not opted into, or as applicable, has opted out of the institution's discretionary overdraft service, any additional balance disclosed should not include funds that otherwise might be available under that service. For example, the institution could state that overdraft funds are not available for ATM and one-time (or everyday) debit card transactions. in Supplement I. Providing information about the payment of overdrafts in response to a balance inquiry made through an automated system, such as a telephone response machine, ATM, or an institution's Internet site, is not a response to a consumer-initiated inquiry for purposes of this paragraph; (iii) An advertisement made through broadcast or electronic media, such as television or radio; (iv) An advertisement made on outdoor media, such as billboards; (vi) An in-person discussion with a consumer; (vii) Disclosures required by federal or other applicable law; (viii) Information included on a periodic statement or a notice informing a consumer about a specific overdrawn item or the amount the account is overdrawn; (ix) A term in a deposit account agreement discussing the institution's right to pay overdrafts; (x) A notice provided to a consumer, such as at an ATM, that completing a requested transaction may trigger a fee for overdrawing an account, or a general notice that items overdrawing an account may trigger a fee; (xi) Informational or educational materials concerning the payment of overdrafts if the materials do not specifically describe the institution's overdraft service; or. The institution allocates and transfers funds between the two subaccounts in order to maximize the balance in the savings account while complying with the monthly limitations on transfers out of savings accounts under Regulation D of the Board of Governors of the Federal Reserve System (12 CFR 204.2(d)(2)). Foreign institutions. 5. (p) Passbook savings account means a savings account in which the consumer retains a book or other document in which the institution records transactions on the account. I wasn't sure if the fees described in Reg DD applied to this type of transfer fee. address by Reg DD the required elements. The overdraft services covered by 1030.11(a)(1) of this part do not include a service providing for the transfer of funds from another deposit account of the consumer to permit the payment of items without creating an overdraft, even if a fee is charged for the transfer. in Supplement I. 1030.10 [Reserved] 1030.11 Additional disclosure requirements for overdraft services. 2236), as amended by Title X, section 1100B of the Dodd-Frank Wall Street Reform A collection of useful resources for various areas of the bank which have been developed by members of the BankersOnline staff or have been created and contributed by users of the BankersOnline site. The requirement applies whether the institution discloses a balance through an ATM owned or operated by the institution or through an ATM not owned or operated by the institution (including an ATM operated by a non-depository institution). Sections 1030.1- 1030.11. Trust accounts opened by a trustee pursuant to a formal written trust agreement (not merely declarations of trust on a signature card such as a Totten trust, or an IRA and SEP account). Place a notice on the ATM that a fee will be charged to non-customers B. (b) Permissible rates. 1030.7 Payment of interest. Balance that does not include additional amounts. Items that are not a bonus include discount coupons for goods or services at restaurants or stores. Coffee mugs, T-shirts or other merchandise with a market value of $10 or less. (a) Misleading or inaccurate advertisements. Quick Links Search FAQs from the Hotline (d) Bonuses. (1) Be misleading or inaccurate or misrepresent a depository institution's deposit contract; or 1030.8 Advertising. Warning Letters. Bonuses do not include value that consumers receive through the waiver or reduction of fees (even if the fees waived exceed $10) for banking-related services such as the following: i. (iii) Short-term time accounts. 1030.1 Authority, purpose, coverage, and effect on state laws. Pay all checks C. Bank statements must list the dollar amounts for all fees imposed on the account for returning items unpaid both for the period and year to date Alternatively, the institution could provide a statement for the cycle ending January 9, 2007 showing the year-to-date total for fees imposed January 1, 2006 through December 31, 2006. If an institution assesses and then waives and credits a fee within the same cycle, the institution may, at its option, reflect the adjustment in the total disclosed for fees imposed during the current statement period and for the total for the calendar year-to-date. With our Money Market account, we would like to pay higher rates on some accounts to allow us to retain top clients. Regulation DD (12 CFR Part 1030), which implements the Truth in Savings Act (TISA), became effective in June 1993. DD." 1030.1 Authority, purpose, coverage, and effect on state laws. The word profit shall not be used in referring to interest paid on an account. See interpretation of 11(c) Disclosure of account balances. 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Bach, Unauthorized Checks/Drafts/Transactions/Withdrawals. Accounts permitting access by other electronic means are not passbook saving accounts and must comply with the requirements of 1030.6 if statements are sent four or more times a year. (1) Triggering terms. Relation to Regulation E. Passbook savings accounts include accounts accessed by preauthorized electronic fund transfers to the account (as defined in 12 CFR 1005.2(j)), such as an account that receives direct deposit of social security payments. Official interpretation of 11(a)(3) Format requirements. Advertising an account as "free." If the advertised account-related service is an overdraft service subject to the requirements of 1030.11(b)(1) of this part, institutions must disclose the fee or fees for the payment of each overdraft, not merely that a cost is associated with the overdraft service, as well as other required information. Definition of Regulation DD Through Regulation DD, consumers are entitled to regulated disclosures from financial institutionsexcluding credit unions.