Reg DD

Question 1

Reg DD covers any commercial message, appearing in any medium, that directly or indirectly promotes:

Answer 1

the availability of, or a deposit in, a new account

Question 2

Reg DD requires that in oral rate quotations, a bank must state:

Answer 2

the annual percentage yield (APY)

Question 3

In rate quotations, interest rates may also be used, but it cannot:

Answer 3

be used alone and no other rate may be quoted

Question 4

Reg DD disclosures must be provided to the consumer:

Answer 4

before an account is opened or a fee is assessed, whichever is earlier

Question 5

If the consumer is not present when an account is opened, disclosures must be mailed:

Answer 5

within 10 business days

Question 6

If a consumer requests an account shopping disclosure, the bank must:

Answer 6

*provide it in person

* mail within a reasonable time

* provide electronically (if requested in that manner)

Question 7

New account disclosures must include the APY and the interest rate using:

Answer 7

those terms

Question 8

If deposit accounts have variable rates, the bank must disclose:

Answer 8

* that the rate may change, when, and how

* how the rate is determined

* any limitations

Question 9

New account disclosures must disclose the frequency with which the interest is:

Answer 9

compounded and credited

Question 10

New account disclosures must include any limitations, if any, on the number of:

Answer 10

deposits or withdrawals

Question 11

New time deposit account disclosures must include early withdrawal penalties and outline:

Answer 11

if, when, and how a penalty will be imposed

Question 12

New time deposit account disclosures must include whether or not the account will automatically renew at maturity and:

Answer 12

* if yes, any grace period

* if no, if interest will be paid after maturity

Question 13

For auto renewing time deposits that have maturities of more than one month, a disclosure must be sent:

Answer 13

* at least 30 calendar days before the renewal OR

* at least 20 calendar days before the end of the grace period

Question 14

Time deposit renewal notices for accounts with maturities of longer than one year, the disclosure must include:

Answer 14

the maturity date and all information required on a new account disclosure

Question 15

Time deposit renewal notices for accounts with maturities of one year or less, the disclosure must include:

Answer 15

* the maturity date

* the rate and APY for the new account or a phone number to call

* any differences between the old account terms and new account terms

Question 16

Deposit account change in terms notices must be sent:

Answer 16

at least 30 calendar days before the effective date

Question 17

T or F

Reg DD periodic statements are required.

Answer 17

FALSE

but if the bank provides a periodic statement of an account, there are required elements

Question 18

Reg DD periodic statements must include the number of days in the statement period or:

Answer 18

the beginning and ending dates of the period

Question 19

Overdraft protection disclosures must include the total dollar amount for all fees or charges imposed on the account for:

Answer 19

paid and returned items

Question 20

Overdraft protection disclosures must include the term:

Answer 20

total overdraft fees

Question 21

Reg DD prohibits banks from describing an account as free or no cost if:

Answer 21

any maintenance or activity fee may be charged

Question 22

If any rate of return is quoted on a deposit account, it must be stated as:

Answer 22

the annual percentage yield (APY)

Question 23

The interest rate may be advertised with the APY so long as:

Answer 23

it is not more conspicuous

Question 24

Deposit account disclosures must express the APY to:

Answer 24

two decimal places

Question 25

For electronic advertisements, if both the APY and interest rate are stated, they must appear:

Answer 25

in the same location so they can be viewed simultaneously, a link is not sufficient

Question 26

If the APY is stated in an advertisement, what also must be included?

Answer 26

* the time period of the APY

* any minimum balance requirements

* variable rate info, as applicable

* a statement that fees could reduce earnings

Question 27

If an advertisement includes a bonus it must also include:

Answer 27

* the APY

* bonus requirements

* minimum balance information

Question 28

For electronic advertisements, except for the APY and interest rate being in the same location, other required disclosures may:

Answer 28

be connected to their triggering terms by a link

Question 29

Generally, signs that are inside the bank’s premises and intended for indoor reading are not subject to any advertising requirements except that they:

Answer 29

* may not be misleading or inaccurate

* may not refer to an account as free or no cost if there is a maintenance charge

* must use APY or APY and interest rate together

* must advise the customer to contact the bank for additional information

Question 30

Advertisements for overdrafts must make what additional disclosures?

Answer 30

* the fee for payment or return of items

* categories of transactions where fees will be imposed

* time to repay the overdraft

* circumstances where institution will not pay an overdraft

Question 31

If balances are disclosed through an automated system, it may not include:

Answer 31

amounts the institution provides to cover overdrafts UNLESS the institution prominently states that the balances include such amounts

Question 32

Reg DD records must be kept for:

Answer 32

two years after the disclosures must be made

Question 33

T or F

Reg DD does not prescribe a particular frequency of compounding interest, nor does it mandate that periodic statements be sent. Interest must begin to accrue no later than prescribed by the Expedited Funds Availability Act.

Answer 33

TRUE

Question 34

What are the 2 allowable methods of balance calculations for interest payments?

Answer 34

daily balance or average daily balance