NCUA Amends Truth in Savings Act Rules for Overdraft Protection and Electronic Disclosures

CUNA
October 1, 2009 | COMMENTS

The National Credit Union Administration (NCUA) has amended its Truth in Savings Act (TISA) rules to incorporate two recent final rules that were issued by the Federal Reserve Board (Fed) under Regulation DD. TISA requires NCUA to issue rules that are substantially similar to the Fed's TISA rules that it issues under Regulation DD. The only differences would be those that address the unique nature of credit unions and the limitations in which they pay dividends on member accounts.

The two Fed rules addressed in NCUA's rule are those that impose disclosure requirements for overdraft protection plan fees and those that address electronic disclosures.

In December 2008, the Fed issued a final rule regarding the disclosure of overdraft fees on periodic statements and the disclosure of balance information through automated systems. Click here for more information about this rule.

There are no significant differences between NCUA's rule and the Fed's rule.

The other Fed rule that NCUA's rule addresses is the one the Fed issued in October 2007 that applies to the electronic delivery of TISA disclosures. Click here for more information about this rule.

As with the overdraft fee disclosures, there are no significant differences between NCUA's rule and the Fed's rule.

The effective date of NCUA's rule will be January 1, 2010.

If you have any questions or need a copy of the final rule, please feel free to contact Senior Vice President & Deputy General Counsel Mary Dunn at mdunn@cuna.com or Senior Assistant General Counsel Jeff Bloch at jbloch@cuna.com or by telephone at (800) 356-9655, extension 6736 or 6732. You may also access the rule on the Internet here.