Reg DD Flashcards
Reg DD covers any commercial message, appearing in any medium, that directly or indirectly promotes:
the availability of, or a deposit in, a new account
Reg DD requires that in oral rate quotations, a bank must state:
the annual percentage yield (APY)
In rate quotations, interest rates may also be used, but it cannot:
be used alone and no other rate may be quoted
Reg DD disclosures must be provided to the consumer:
before an account is opened or a fee is assessed, whichever is earlier
If the consumer is not present when an account is opened, disclosures must be mailed:
within 10 business days
If a consumer requests an account shopping disclosure, the bank must:
*provide it in person
* mail within a reasonable time
* provide electronically (if requested in that manner)
New account disclosures must include the APY and the interest rate using:
those terms
If deposit accounts have variable rates, the bank must disclose:
* that the rate may change, when, and how
* how the rate is determined
* any limitations
New account disclosures must disclose the frequency with which the interest is:
compounded and credited
New account disclosures must include any limitations, if any, on the number of:
deposits or withdrawals
New time deposit account disclosures must include early withdrawal penalties and outline:
if, when, and how a penalty will be imposed
New time deposit account disclosures must include whether or not the account will automatically renew at maturity and:
* if yes, any grace period
* if no, if interest will be paid after maturity
For auto renewing time deposits that have maturities of more than one month, a disclosure must be sent:
* at least 30 calendar days before the renewal OR
* at least 20 calendar days before the end of the grace period
Time deposit renewal notices for accounts with maturities of longer than one year, the disclosure must include:
the maturity date and all information required on a new account disclosure
Time deposit renewal notices for accounts with maturities of one year or less, the disclosure must include:
* 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
Deposit account change in terms notices must be sent:
at least 30 calendar days before the effective date
T or F
Reg DD periodic statements are required.
FALSE
but if the bank provides a periodic statement of an account, there are required elements
Reg DD periodic statements must include the number of days in the statement period or:
the beginning and ending dates of the period
Overdraft protection disclosures must include the total dollar amount for all fees or charges imposed on the account for:
paid and returned items
Overdraft protection disclosures must include the term:
total overdraft fees
Reg DD prohibits banks from describing an account as free or no cost if:
any maintenance or activity fee may be charged
If any rate of return is quoted on a deposit account, it must be stated as:
the annual percentage yield (APY)
The interest rate may be advertised with the APY so long as:
it is not more conspicuous
Deposit account disclosures must express the APY to:
two decimal places
For electronic advertisements, if both the APY and interest rate are stated, they must appear:
in the same location so they can be viewed simultaneously, a link is not sufficient
If the APY is stated in an advertisement, what also must be included?
* the time period of the APY
* any minimum balance requirements
* variable rate info, as applicable
* a statement that fees could reduce earnings
If an advertisement includes a bonus it must also include:
* the APY
* bonus requirements
* minimum balance information
For electronic advertisements, except for the APY and interest rate being in the same location, other required disclosures may:
be connected to their triggering terms by a link
Generally, signs that are inside the bank’s premises and intended for indoor reading are not subject to any advertising requirements except that they:
* 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
Advertisements for overdrafts must make what additional disclosures?
* 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
If balances are disclosed through an automated system, it may not include:
amounts the institution provides to cover overdrafts UNLESS the institution prominently states that the balances include such amounts
Reg DD records must be kept for:
two years after the disclosures must be made
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.
TRUE
What are the 2 allowable methods of balance calculations for interest payments?
daily balance or average daily balance
