IBA Compliance Connection

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If we raise our wire transfer fees, are we required to send a new fee disclosure to all customers thirty days in advance of the change? The wire transfer fees are included on the fee schedule we give to customers at account opening.

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No, you are not required to disclose an increase in your wire transfer fees thirty days in advance of the change — unless your account agreement requires such notice.

For consumer accounts, Regulation DD generally requires at least thirty days’ advance notice of a change in term that might adversely affect the consumer. However, this requirement applies only to terms that are required to be disclosed under Regulation DD. Although Regulation DD requires the disclosure of fees that may be imposed in connection with an account, the Official Interpretations to Regulation DD provide that institutions do not need to disclose fees for services offered to account and nonaccount holders alike, such as wire transfer fees.

Consequently, unless your account agreement provides otherwise, you are not required to provide advance notice of an increase in your wire transfer fees, as you were not required provide such fees in your account disclosures (even though you may have done so gratuitously).

For resources related to our guidance, please see:

  • 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.”)
  • Regulation DD, 12 CFR 1030.4(b)(4) (“Content of account disclosures. 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).”)