Regulation E Interim Statements

Is your institution sending compliant Regulation E Interim Statements?

When you think of Regulation E, handling error disputes probably comes to mind.  However, as many are aware, there are several other requirements within Regulation E such as account opening disclosures regarding customer liability on unauthorized transfers, the issuance of access devices (e.g., debit card), and rules on disclosures at ATMs.  There are also requirements related to overdraft services and changes in account terms.  Arguably, though, what gets the least amount of attention are Regulation E’s periodic statement requirements

Generally, financial institutions are required to send interim statements in between statement cycles when an EFT occurs on an account (see § 1005.9(b)).  For example, if an institution issues quarterly statements at the end of March, June, September and December, and a customer initiates an EFT in February, an interim statement for February must be provided.  What your institution includes on the interim statement, however, may trigger additional requirements which your institution should confirm are met. 

Institutions often send interim statements which are condensed versions of a typical periodic statement and therefore certain required information required information is not disclosed.

The commentary to Regulation E states, “If an interim statement contains interest or rate information, the institution must comply with Regulation DD, 12 CFR 1030.6.” (see Comment 9(b)-2).   

So if your institution’s interim statements list interest rate, interest accrued, or interest earned but not APY, your institution’s statements are not compliant.

We recommend revisiting your interim statements today to determine what information is listed and whether all required disclosures are present.  

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(No claim to original U.S. government material.)

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, including electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of the author and publisher. This article is intended to inform recipients of new or changed laws, rules or regulations. It should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own attorney concerning your situation and specific legal questions you have. Regulatory guidance is subject to change or modification, retroactively or prospectively, by varying interpretation and by subsequently issued pronouncements, legislation, and regulatory, administrative, or judicial decisions. Any such change or modification could affect the accuracy of this article.

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