The Truth in Savings Act (Regulation DD) is all about getting information in the hands of consumers so they can make informed decisions about rates, fees and account terms. It outlines certain disclosures that must be provided when a consumer inquires about an account, when they open an account, on their periodic statements, when you advertise an account, etc. Institutions need to be aware that if certain information changes after it’s been provided, there are certain instances where advance notice of the change is required. Specifically, 12 CFR 1030.5 states:
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 (aka the initial TISA disclosure provided at account opening) 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.
As with anything in compliance, there are also some exclusions.
Kevin explains more in the video.
Video Highlights:
Published
2024/02/06