Reg DD Flashcards

1
Q

Reg DD covers any commercial message, appearing in any medium, that directly or indirectly promotes:

A

the availability of, or a deposit in, a new account

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2
Q

Reg DD requires that in oral rate quotations, a bank must state:

A

the annual percentage yield (APY)

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3
Q

In rate quotations, interest rates may also be used, but it cannot:

A

be used alone and no other rate may be quoted

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4
Q

Reg DD disclosures must be provided to the consumer:

A

before an account is opened or a fee is assessed, whichever is earlier

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5
Q

If the consumer is not present when an account is opened, disclosures must be mailed:

A

within 10 business days

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6
Q

If a consumer requests an account shopping disclosure, the bank must:

A

*provide it in person

* mail within a reasonable time

* provide electronically (if requested in that manner)

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7
Q

New account disclosures must include the APY and the interest rate using:

A

those terms

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8
Q

If deposit accounts have variable rates, the bank must disclose:

A

* that the rate may change, when, and how

* how the rate is determined

* any limitations

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9
Q

New account disclosures must disclose the frequency with which the interest is:

A

compounded and credited

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10
Q

New account disclosures must include any limitations, if any, on the number of:

A

deposits or withdrawals

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11
Q

New time deposit account disclosures must include early withdrawal penalties and outline:

A

if, when, and how a penalty will be imposed

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12
Q

New time deposit account disclosures must include whether or not the account will automatically renew at maturity and:

A

* if yes, any grace period

* if no, if interest will be paid after maturity

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13
Q

For auto renewing time deposits that have maturities of more than one month, a disclosure must be sent:

A

* at least 30 calendar days before the renewal OR

* at least 20 calendar days before the end of the grace period

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14
Q

Time deposit renewal notices for accounts with maturities of longer than one year, the disclosure must include:

A

the maturity date and all information required on a new account disclosure

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15
Q

Time deposit renewal notices for accounts with maturities of one year or less, the disclosure must include:

A

* the maturity date

* the rate and APY for the new account or a phone number to call

* any differences between the old account terms and new account terms

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16
Q

Deposit account change in terms notices must be sent:

A

at least 30 calendar days before the effective date

17
Q

T or F

Reg DD periodic statements are required.

A

FALSE

but if the bank provides a periodic statement of an account, there are required elements

18
Q

Reg DD periodic statements must include the number of days in the statement period or:

A

the beginning and ending dates of the period

19
Q

Overdraft protection disclosures must include the total dollar amount for all fees or charges imposed on the account for:

A

paid and returned items

20
Q

Overdraft protection disclosures must include the term:

A

total overdraft fees

21
Q

Reg DD prohibits banks from describing an account as free or no cost if:

A

any maintenance or activity fee may be charged

22
Q

If any rate of return is quoted on a deposit account, it must be stated as:

A

the annual percentage yield (APY)

23
Q

The interest rate may be advertised with the APY so long as:

A

it is not more conspicuous

24
Q

Deposit account disclosures must express the APY to:

A

two decimal places

25
Q

For electronic advertisements, if both the APY and interest rate are stated, they must appear:

A

in the same location so they can be viewed simultaneously, a link is not sufficient

26
Q

If the APY is stated in an advertisement, what also must be included?

A

* the time period of the APY

* any minimum balance requirements

* variable rate info, as applicable

* a statement that fees could reduce earnings

27
Q

If an advertisement includes a bonus it must also include:

A

* the APY

* bonus requirements

* minimum balance information

28
Q

For electronic advertisements, except for the APY and interest rate being in the same location, other required disclosures may:

A

be connected to their triggering terms by a link

29
Q

Generally, signs that are inside the bank’s premises and intended for indoor reading are not subject to any advertising requirements except that they:

A

* may not be misleading or inaccurate

* may not refer to an account as free or no cost if there is a maintenance charge

* must use APY or APY and interest rate together

* must advise the customer to contact the bank for additional information

30
Q

Advertisements for overdrafts must make what additional disclosures?

A

* the fee for payment or return of items

* categories of transactions where fees will be imposed

* time to repay the overdraft

* circumstances where institution will not pay an overdraft

31
Q

If balances are disclosed through an automated system, it may not include:

A

amounts the institution provides to cover overdrafts UNLESS the institution prominently states that the balances include such amounts

32
Q

Reg DD records must be kept for:

A

two years after the disclosures must be made

33
Q

T or F

Reg DD does not prescribe a particular frequency of compounding interest, nor does it mandate that periodic statements be sent. Interest must begin to accrue no later than prescribed by the Expedited Funds Availability Act.

A

TRUE

34
Q

What are the 2 allowable methods of balance calculations for interest payments?

A

daily balance or average daily balance