Truth in Savings Act & NCUA TISA Regulations

Question 1

The two key requirements of the Truth in Savings Act and regulations are to
1. disclose account _____ and ______
2. pay _____
on the balance in the account each day.

Answer 1

Rates and Fees
Dividends

Question 2

T or F
The law addresses all account lifecycles except closing.

Answer 2

True

Question 3

T or F
Under the TISA credit unions’ initial disclosures must disclose the minimum balances to earn dividends on accounts, the APYs and dividend rates, the use of DBM (Daily Balancing Method) or ADBM (Average Daily Balance Method) of dividend calculation, compounding and crediting policies and fees.

Answer 3

True

Question 4

T or F
Under the Truth in Savings Act credit unions must verbally (orally) disclose account rates upon request

Answer 4

False

Question 5

T or F
The daily balance method (DBM) of dividend calculator involves dividing the sume of the daily balances in the period by the number of days in the period.

Answer 5

False

Question 6

T or F
The daily balance method (DBM) of dividend calculator involves dividing the sum of the daily balances in the period by the number of days in the period.

Answer 6

False

Question 7

T or F
Under the TISA dividends are essentially earnings to members

Answer 7

True

Question 8

T or F
When a member inquiries about account rates by phone, and the credit union discloses the rate, TISA requires that the rate be stated at APY.

Answer 8

True

Question 9

Y or N
Can you just state the dividend rate on the phone?

Answer 9

No

Question 10

What do you have to say along with the dividend rate on the phone?

Answer 10

The APY

Question 11

T or F
The APYE (annual percentage yield earned) must be included in the initial TISA account opening disclosures.

Answer 11

False - The APYE is for statements only.

Question 12

T or F
The TISA initial disclosures must be given to all owners on joint accounts.

Answer 12

False - Disclosures must be offered to just one owner under Reg CC, Reg E and TISA

Question 13

T or F
If the TISA disclosures are available to members electronically (via the credit union’s website), the credit union must first obtain the member’s “affirmative consent” to recieve the disclosures electonically.

Answer 13

True

Question 14

T or F
The member must also be able to access the electronic TISA disclosures prior to opening the account.

Answer 14

True - This is ESIGN again.

Question 15

T or F
The TISA “clear and conspicuous” standard for disclosures does not apply to TIS Electonic documents.

Answer 15

False

Question 16

T or F
In account disclosures, a 3.154% annual percentage yield (APY) must disclose as 3.15%

Answer 16

True

Question 17

T or F
When opening a dividend -bearing term share account (certificate account) or other interest-bearing account (for state-chartered credit unions), the annual percentage yield (APY) and dividend rate or interest rate disclosed must be the rate that was offered on the date the account is opened.

Answer 17

True

Question 18

T or F
For overdraft protection, TISA requires the transactions offered, fees and time to repay to be disclosed in marketing pieces.

Answer 18

True

Question 19

T or F
The TISA does not require overdraft disclosures (concerning your ODP) on your credit union’s ATM receipts.

Answer 19

True

Question 20

T or F
Members must be given the TISA disclosures each time they open a new account.

Answer 20

False

Question 21

T or F
If a member requests the TISA disclosures by phone or mail, the credit union has 10 days to get around to sending the member those disclosures.

Answer 21

True

Question 22

T or F
The TIS Act absolutely mandates that credit unions send periodic statements to all members with accounts.

Answer 22

False

Question 23

T or F
The change in terms notice required under the Truth in Savings rule does not apply to variable-rate accounts.

Answer 23

True

Question 24

T or F
The Trust in Savings Act required credit unions to disclose rates in all account advertisements.

Answer 24

False

Question 25

Y or N
Could the following checking accounts be advertised as “free” under TISA rules? “Our classic checking account has no minimum balance, no per check charge, and no monthly service charge. However, you do have a $20.00 NSF fee and a $10.00 stop-payment fee.” “Under a special “seniors” program, the $250.00 minimum balance requirements on your no interest checking account is waived for 65 years of age or older

Answer 25

Yes

Question 26

T or F
When an advertisement mentions an APY, it must also disclose the period for which the APY is offered.

Answer 26

True

Question 27

T or F
While minimum balance(s), balance computation method (DBM/ADBM), and the date dividends will be computed must be disclosed, the method used to decide minimum balance requirements is not part of the initial disclosures.

Answer 27

True

Question 28

T or F
The TISA requires credit unions to pay dividends on members’ inactive (a.k.a dormant) accounts.

Answer 28

True

Question 29

T or F
A credit union is required to disclose and year to date overdraft fees and returned item fees in its periodic statements (along with dividends and interest earned), whether it promotes the payment of overdrafts in advertising or not.

Answer 29

True