ABA Banking Journal - May 2010 - (Page 44)
ABA COMPLIANCE CENTER | Inbox
Reg D has exceptions for loans, but not big ones
Regulation D does not restrict payments made for loans at the same institution when those payments are made from a money market or savings account (12 C.F.R. 204.2(d)(2)). Does this unlimited transfer ability apply to any loans, or only loans that are in the name of the depositor? For example, would a debit made from a sole-owner money market account to pay a spouse’s loan at the same bank count as one of the limited transactions? Regulation D is not clear on this issue. We contacted the Federal Reserve’s legal division for an answer. The response: The loan must be held in the same name as the money market or savings account. The reasoning: If a customer could transfer funds to any loan—even those not in the customer’s name—this would create a method of circumventing the transaction limitations by making unlimited payments to third parties. In our example, the transfer would count against the six-permonth transaction limit. (11/6/09) Grouping fees under Reg DD The Commentary to Regulation DD, regarding disclosure of fees on periodic statements, reads: “… the institution must disclose separate totals for the statement period and for the calendar year-to-date. The total dollar amount includes per-item fees as well as interest charges, daily or other periodic fees, or fees charged for maintaining an account in overdraft status, whether the overdraft is by check or by other means. It also includes fees charged when there are insufficient funds because previously deposited funds are subject to a hold or are uncollected.” Must each type of fee be separately disclosed? For example, if a bank charges a fee for returning items unpaid, and a separate fee (same amount) for returning items presented against uncollected funds, plus a weekly fee for maintaining an account in overdraft status, can these fees be lumped together? The regulation states that the bank must classify fees into one of two categories: fees for paying overdrafts and fees for returning items unpaid. It appears that the bank could categorize any fee associated with either category together, which suggests that fees associated with returning items unpaid– including uncollected funds fees— would be of the same “type” and would be grouped together. (http://tinyurl.com/ regddq ) (11/6/09)
Leslie Callaway, CRCM, ABA Compliance Project Manager, and Mark Kruhm, CRCM, ABA Senior Compliance Analyst, and other ABA experts, answer ABA member questions here and in the online edition of Inbox at ababj.com. Member banks may submit questions to: compliance@aba. com. Disclaimer: Our answers do not provide, nor are they intended to substitute for, professional legal advice. Answers were current as of date shown at the end of each item.
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ABA BANKING JOURNAL? |? may?2010
3/9/2010 8:20:21 PM
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