BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D.C.  20551

DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS

CA 09-14

December 16, 2009

TO THE OFFICERS AND MANAGERS IN CHARGE OF CONSUMER AFFAIRS SECTIONS

SUBJECT: Updated Examination Procedures for Regulation DD

The Task Force on Consumer Compliance of the Federal Financial Institutions Examination Council recently approved the attached updated examination procedures for Regulation DD (Truth in Savings). The updated procedures incorporate regulatory changes to Regulation DD that address depository institutions' disclosure practices related to overdrafts (74 Federal Register 5584), as follows:

• Disclosure of Aggregate Overdraft Fees. The final rule extends to all institutions the requirement to disclose on periodic statements the aggregate dollar amounts charged for overdraft fees and for returned item fees (for the statement period and the year-to-date). Prior to the regulatory changes' effective date of January 1, 2010, only institutions that promote or advertise the payment of overdrafts must disclose aggregate amounts.
• Disclosure of Balance Information. The final rule requires institutions that provide account balance information through an automated system to provide a balance that does not include additional funds that may be made available to cover overdrafts.

If you have any questions, please contact Kathleen Conley, Senior Supervisory Consumer Financial Services Analyst, at (202) 452-2389 or Paul Robin, Manager, Oversight and Policy, at (202) 452-3140.

Sincerely,
(signed)

Sandra F. Braunstein
Director
Division of Consumer and Community Affairs

Reg DD Background, Procedures, and Checklist (293 kb PDF)

Supersedes: CA Letters 08-3 (July 28, 2008)