Proposed amendments published to Regulation DD.The Federal Reserve Board on May 28, 2004, published proposed amendments to Regulation DD (Truth in Savings), which implements the Truth in Savings Act The Truth in Savings Act (also known by the acronym TISA) is a United States federal law that was passed on December 19, 1991. It was part of the larger Federal Deposit Insurance Corporation Improvement Act of 1991 and is implemented by Regulation DD. , and the regulation's official staff commentary to address concerns about the uniformity and adequacy of information provided to consumers when they overdraw TO OVERDRAW. To draw bills or cheeks upon an individual, bank or other corporation, for a greater amount of funds than the party who draws is entitled to. 2. their accounts. The proposed amendments, in part, address a specific service offered by depository institutions Depository institution A financial institution that obtains its funds mainly through deposits from the public. This includes commercial banks, savings and loan associations, savings banks and credit unions. , commonly referred to as bounced-check protection or courtesy overdraft A check that is drawn on an account containing less money than the amount stated on the check. The term overdraft is also used in reference to the condition that exists when vouchers protection. Depository institutions sometimes offer courtesy overdraft protection to deposit account customers as an alternative to a traditional overdraft line of credit. To address concerns about the marketing of this service, a proposed revision to the regulation would expand the prohibition prohibition, legal prevention of the manufacture, transportation, and sale of alcoholic beverages, the extreme of the regulatory liquor laws. The modern movement for prohibition had its main growth in the United States and developed largely as a result of the against misleading advertisements to cover communications with current customers about existing accounts. The staff commentary would provide examples. Other proposed revisions to Regulation DD would require additional fee and other disclosures about courtesy overdraft services, including in advertisements. The Board is also proposing amendments of general applicability that would require institutions to provide more uniform disclosures about overdraft and returned-item fees. In addition, the member agencies of the Federal Financial Institutions Examination Council The Federal Financial Institutions Examination Council, or FFIEC, is a formal interagency body of the United States government empowered to prescribe uniform principles, standards, and report forms for the federal examination of financial institutions by the Board of published proposed guidance to assist insured depository institutions in the responsible disclosure and administration of overdraft protection services. |
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