Increasing NSF Fees: Is a 30-Day Notice Required? by Mary Beth Guard, BOL Guru
Question: My boss asked me to research his question of "Do we have to give the customers a 30 day notice in order to raise the NSF fee from $20.00 to $25.00?" I told him that I believed we did. Can you confirm?
Answer: If the customers you are referring to are consumers, the answer is yes. Truth in Savings requires that you give an advance change in terms notice.
Under Reg DD, Section 230.5(a):
(a) Change in terms--(1) Advance notice required. A depository institution shall give advance notice to affected consumers of any change in a term required to be disclosed under Sec. 230.4(b) of this part if the change may reduce the annual percentage yield or adversely affect the consumer. The notice shall include the effective date of the change. The notice shall be mailed or delivered at least 30 calendar days before the effective date of the change.
The original version appeared in the November 2002 edition of the Oklahoma Bankers Association Compliance Informer.
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