Skip to main content

Search

Consumer Banking and Payments Law: 12 U.S.C. § 4304. Disclosure requirements for certain accounts [§ 265]

The Bureau shall require, in regulations which the Bureau shall prescribe, such modification in the disclosure requirements under this chapter relating to annual percentage yield as may be necessary to carry out the purposes of this chapter in the case of—

(1) accounts with respect to which determination of annual percentage yield is based on an annual rate of interest that is guaranteed for a period of less than 1 year;

(2) variable rate accounts;

Consumer Banking and Payments Law: 12 U.S.C. § 4306. Payment of interest [§ 267]

(a) Calculated on full amount of principal

Interest on an interest-bearing account at any depository institution shall be calculated by such institution on the full amount of principal in the account for each day of the stated calculation period at the rate or rates of interest disclosed pursuant to this chapter.

(b) No particular method of compounding interest required

Consumer Banking and Payments Law: 12 U.S.C. § 4307. Periodic statements [§ 268]

Each depository institution shall include on or with each periodic statement provided to each account holder at such institution a clear and conspicuous disclosure of the following information with respect to such account:

(1) The annual percentage yield earned.

(2) The amount of interest earned.

(3) The amount of any fees or charges imposed.

Consumer Banking and Payments Law: 12 U.S.C. § 4308. Regulations [§ 269]

(a) In general

(1) Regulations required

Before the end of the 9-month period beginning on December 19, 1991, the Board, after consultation with each agency referred to in section 4309 (a) of this title and public notice and opportunity for comment, shall prescribe regulations to carry out the purpose and provisions of this chapter.

(2) Effective date of regulations

Consumer Banking and Payments Law: 12 U.S.C. § 4309. Administrative enforcement [§ 270]

(a) In general

Subject to subtitle B of the Consumer Financial Protection Act of 2010, Compliance with the requirements imposed under this subtitle shall be enforced under—

(1) Section 8 of the Federal Deposit Insurance Act by the appropriate Federal banking agency (as defined in section 3(q) of that Act), with respect to—

(A) insured depository institutions (as defined in section 3(c)(2) of that Act);

Consumer Banking and Payments Law: 12 U.S.C. § 4310. [§ 271] Repealed.

Pub. L. 104–208, Div. A, title II, § 2604(a), Sept. 30, 1996, 110 Stat. 3009–470

[Section, Pub. L. No. 102–242, 105 Stat. 2340 (Dec. 19, 1991); Pub. L. No. 102–550, 106 Stat. 4084 (Oct. 28, 1992), related to civil liability for depository institutions which failed to comply with any requirements of chapter or regulations with respect to account holders.]

Consumer Banking and Payments Law: 12 U.S.C. § 4312. Effect on State law [§ 273]

The provisions of this chapter do not supersede any provisions of the law of any State relating to the disclosure of yields payable or terms for accounts to the extent such State law requires the disclosure of such yields or terms for accounts, except to the extent that those laws are inconsistent with the provisions of this chapter, and then only to the extent of the inconsistency. The Bureau may determine whether such inconsistencies exist.

Consumer Banking and Payments Law: 12 U.S.C. § 4313. Definitions [§ 274]

For the purposes of this chapter—

(1) Account

The term “account” means any account intended for use by and generally used by consumers primarily for personal, family, or household purposes that is offered by a depository institution into which a consumer deposits funds, including demand accounts, time accounts, negotiable order of withdrawal accounts, and share draft accounts.

(2) Annual percentage yield

Consumer Banking and Payments Law: Introductory Materials

Appendix B.2 reproduces Regulation DD. The Dodd-Frank Wall Street Reform and Consumer Protection Act moved the rulemaking authority under the Truth in Savings Act (TISA) from the Federal Reserve Board to the Consumer Financial Protection Bureau (CFPB). The section number from the Federal Reserve Board’s version of the regulation, 12 C.F.R. part 230, may be found in brackets at the end of the title of each section in the table of contents of the current CFPB regulation, 12 C.F.R. part 1030.

Consumer Banking and Payments Law: 12 C.F.R. § 1030.1 Authority, purpose, coverage, and effect on state laws.

(a) Authority. This part, known as Regulation DD, is issued by the Bureau of Consumer Financial Protection to implement the Truth in Savings Act of 1991 (the act), contained in the Federal Deposit Insurance Corporation Improvement Act of 1991 (12 U.S.C. 3201 et seq., Public Law 102–242, 105 Stat. 2236), as amended by Title X, section 1100B of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. L. 111-203, 124 Stat. 1376).

Consumer Banking and Payments Law: 12 C.F.R. § 1030.2 Definitions.

For purposes of this part, the following definitions apply:

(a) Account means a deposit account at a depository institution that is held by or offered to a consumer. It includes time, demand, savings, and negotiable order of withdrawal accounts. For purposes of the advertising requirements in § 1030.8 of this part, the term also includes an account at a depository institution that is held by or on behalf of a deposit broker, if any interest in the account is held by or offered to a consumer.

Consumer Banking and Payments Law: 12 C.F.R. § 1030.3 General disclosure requirements.

(a) Form. Depository institutions shall make the disclosures required by §§ 1030.4 through 1030.6 of this part, as applicable, clearly and conspicuously, in writing, and in a form the consumer may keep. The disclosures required by this part may be provided to the consumer in electronic form, subject to compliance with the consumer consent and other applicable provisions of the Electronic Signatures in Global and National Commerce Act (E-Sign Act) (15 U.S.C. 7001 et seq.).

Consumer Banking and Payments Law: 12 C.F.R. § 1030.5 Subsequent disclosures.

(a) Change in terms.

(1) Advance notice required. 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 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.

Consumer Banking and Payments Law: 12 C.F.R. § 1030.6 Periodic statement disclosures.

(a) General rule. If a depository institution mails or delivers a periodic statement, the statement shall include the following disclosures:

(1) Annual percentage yield earned. The “annual percentage yield earned” during the statement period, using that term, calculated according to the rules in Appendix A of this part.

(2) Amount of interest. The dollar amount of interest earned during the statement period.

Consumer Banking and Payments Law: 12 C.F.R. § 1030.7 Payment of interest.

(a) Permissible methods.

(1) Balance on which interest is calculated. Institutions shall calculate interest on the full amount of principal in an account for each day by use of either the daily balance method or the average daily balance method. Institutions shall calculate interest by use of a daily rate of at least 1/365 of the interest rate. In a leap year a daily rate of 1/366 of the interest rate may be used.

Consumer Banking and Payments Law: 12 C.F.R. § 1030.8 Advertising.

(a) Misleading or inaccurate advertisements. An advertisement shall not:

(1) Be misleading or inaccurate or misrepresent a depository institution’s deposit contract; or

(2) Refer to or describe an account as “free” or “no cost” (or contain a similar term) if any maintenance or activity fee may be imposed on the account. The word “profit” shall not be used in referring to interest paid on an account.

Consumer Banking and Payments Law: 12 C.F.R. § 1030.11 Additional disclosure requirements for overdraft services.

(a) Disclosure of total fees on periodic statements.

(1) General. A depository institution must separately disclose on each periodic statement, as applicable:

(i) The total dollar amount for all fees or charges imposed on the account for paying checks or other items when there are insufficient or unavailable funds and the account becomes overdrawn, using the term “Total Overdraft Fees;” and