Topic: Truth in Savings Act (TISA)
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Our Truth in Savings policy states that we retain microfiche permanently. Is there a required retention period for microfiche? We would like to remove this from our policy.
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Regulation DD, which implements the Truth in Savings Act, requires financial institutions to “retain evidence of compliance . . . for a minimum of two years after the date disclosures are required to be made or action is required to be taken.” Regulation DD’s Official Interpretations mention microfiche only to state that “[r]ecords evidencing compliance…
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We are considering changing the name of a deposit account product from “E-Free” to “E-Checking.” The main feature of this account is free e-statements, but we charge a fee for paper statements. Also, if a customer does not log in and access their e-statements for a certain amount of time, we send them a notice stating that we will start sending and charging them a monthly fee for paper statements if they do not log in. The paper statement fee is included in our advertisements and account opening disclosures, but the condition regarding accessing e-statements is not. Do we need to remove “free” from the name of this account, and, if so, are we required to notify our current account holders of this change?
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Yes, we believe you should remove “free” from the name of the deposit account product and cease advertising the account as “free” if you will be charging a monthly fee for paper statements. Additionally, while you are not required to notify customers when you change the name of a deposit account product, we recommend sending…
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We recently updated our deposit account terms and conditions. We are trying to avoid having to send our customers the entire document or a separate change in terms notice. Can we post the updated terms and conditions on our website with changes highlighted and include a message in our customer’s statements saying they can visit our website for the updated terms and conditions? The message also would say that customers can request a printed copy.
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It is unlikely that you will be able to fulfill your notice requirements by posting updated terms and conditions on your website if your updated deposit account terms affect any of the notice requirements under Regulation CC, Regulation E, Regulation DD, or Regulation P. These regulations do allow electronic disclosure if certain requirements are met,…
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If we advertise a checking account as “free” and list “free eStatements” as a feature, but plainly disclose on the advertisement and in the account opening disclosures that we will charge a fee for requesting paper statements, may we charge the fee?
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No, we do not believe that you may charge a monthly fee for paper statements while advertising an account as “free,” even if you disclose the fee on your advertisements and in the account opening disclosures. Regulation DD prohibits an advertisement from referring to or describing an account as “free” if any “maintenance or activity…
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If we advertise a checking account as “free” and list “free eStatements” as a feature, may we charge a customer if they request paper statements?
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No, we do not believe that you may charge a monthly fee for paper statements while advertising an account as “free.” There may be potential pitfalls even if you intend to charge the fee only occasionally, including risking an unfair, deceptive, or abusive act or practice (UDAAP) finding. Regulation DD prohibits an advertisement from referring…
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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?
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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…
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Are we required to pay accrued interest when a customer closes a deposit account? Are we required to do the same for a certificate of deposit (CD) redeemed prior to maturity?
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No, we do not believe you are required to pay accrued interest if a customer closes a deposit account or CD before the date on which the interest is credited — provided that you have properly disclosed that customers may forfeit accrued interest if they close the account before the interest is credited. Regulation DD’s…
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We have had a few instances of a customer with an overdrawn account requesting counter checks. Are we obligated, legally or by regulation, to provide counter checks on request, or can we adopt an internal policy of denying counter checks to customers with overdrawn accounts?
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We are not aware of any law or regulation requiring banks to provide counter checks to their customers. This appears to be a service that some but not all banks offer, and for which some banks charge a fee. We recommend reviewing your account agreements to determine your bank’s obligations with respect to counter checks.…
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What disclosures are we required to make available on our bank’s website?
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Below is a non-exhaustive list of the disclosures and notices that you may choose to post or may be required to post on your bank’s website. This list may be incomplete depending on the products and services you offer or advertise on your website, some of which may trigger additional disclosure requirements. Privacy Notices The…
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We would like to advertise a special interest rate for certificates of deposit on an outdoor scrolling electronic sign. Do we need to include the word “annual percentage yield” in full, or can we use the shorthand “APY”? Do we need to include both the annual percentage yield and the interest rate?
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We believe an outdoor advertisement that states a rate of return must use the full term “annual percentage yield” at least once. Also, outdoor advertisements must disclose the APY and may (but are not required to) include the interest rate. Regulation DD generally requires advertisements that include a rate of return to “state the rate…