Under Illinois law, do wire transfer fees and fees to order foreign currency need to be disclosed on new account opening documents? We have been told that Regulation E and Regulation DD do not require such a disclosure but are wondering if there is an Illinois requirement. Also, if we change one of these fees, do we have to give customers thirty days’ advance notice?

No, we do not believe that Illinois law requires banks to disclose fees for wire transfers and foreign currency orders at account opening, provided that these services are offered to both account and nonaccount holders. Also, we do not believe that you are required to give customers thirty days’ advance notice if you increase one of these fees unless your account agreement requires such notice.

We are not aware of any Illinois law requiring disclosure of fees for wire transfers or foreign currency orders. The Illinois Consumer Deposit Account Act imposes account opening disclosure requirements but provides that a financial institution in compliance with the federal Truth in Savings Act will be deemed to be in compliance with its account opening disclosure requirements. As the Official Interpretations for Regulation DD under the Truth in Savings Act do not require disclosure of fees for services offered to account and nonaccount holders alike (even if you charge different amounts to account holders and nonaccount holders), we do not believe you are required to disclose these fees in your account opening documents.

Additionally, while Regulation DD generally requires at least thirty days’ advance notice of a change in term that might adversely affect a consumer, this requirement applies only to terms that are required to be disclosed under Regulation DD. Therefore, unless your account agreement provides otherwise, you are not required to provide advance notice of an increase in fees for services offered both to account and nonaccount holders.

For resources related to our guidance, please see:

Illinois Consumer Deposit Account Act, 205 ILCS 605/3(e) (“Notwithstanding the provisions of this Section, a financial institution subject to and in compliance with the provisions of Sections 261 through 274 of the Truth in Savings Act, as contained within the Federal Comprehensive Deposit Insurance Corporation Improvement Act of 1991 (FDICIA), 12 USCA 4301 et seq., shall be deemed to be in compliance with this Section, including the requirement of subsection (b) that the disclosure be provided to account holders annually.”)

Regulation DD, 12 CFR 1030.4(b)(4) (“Account disclosures shall include the following, as applicable: . . . (4) Fees. The amount of any fee that may be imposed in connection with the account (or an explanation of how the fee will be determined) and the conditions under which the fee may be imposed.”)

Regulation DD, Official Interpretations, Paragraph 4(b)(4), Comment 2 (“Institutions need not disclose fees such as the following: i. Fees for services offered to account and nonaccount holders alike, such as travelers checks and wire transfers (even if different amounts are charged to account and nonaccount holders).”)

Regulation DD, 12 CFR 1030.5(a)(1) (“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. The notice shall include the effective date of the change. The notice shall be mailed or delivered at least 30 calendar days before the effective date of the change.”)