Hello All,

Our current statements list overdraft items and return item for this period and YTD in a row format.

Reg DD has a sample form which is rows and columns with boxes around it. Our vendor is telling us that the appendix B-10 is optional and they are not making any changes.

Do you agree? If I might ask has anyones statement vendor changed to match the Appendix B-10?

Thanks

Our vendor is stating the same thing. I asked another compliance resource which states that the box format is not mandatory only suggested.

Our statement format is similar to the model but doesn't include a box around the information.

Our vendor is also saying that the row format is in compliance though I definatelly see a difference. They gave us the January 29,2009 version but when I look at the April 17, 2009 version it looks different to me. The fields are closer together. I agree no 'box' requirement is necessary, but I think it should be more compact, but they said they don't intend to change it.

Our fee disclosure looks "substantially" different than the model notice, however it contains all the required information. I have so many other compliance headaches to worry about, that I'm not fighting our core vendor on this one.

I agree 100%, we were told to just keep in our files for the regulators that we brought it their attention, which we've done.

It just so happens that we got an update to our core system that now puts the disclosure into the required "tabular format" with frames.

If your service provider had read the material that accompanied the amendment, and the material that came with the amendment to the sample form, it would have seen that the Fed went to a lot of trouble to determine with consumer surveys that the tabular format used in the regulation is considered more legible and informative, and that includes the borders, in my opinion.

Section 230.11(a) requires that the information be supplied in a format that is "substantially similar" to that shown in sample form B-10.

Although there are no civil penalties associated with Reg DD violations, there can be fallout in the form of exam citations and all that goes with them. And you can believe that examiners will be looking at compliance with these rules started in January.

I don't think that it's wise for banks to be on the wrong side of the overdraft fee issue in today's regulatory/political climate.

Did anyone attend the "New Overdraft Protection Program Rules" teleconference that the Federal Reserve Board hosted on 12/10/09? The presenter stated that the Board expects the disclosure to be in a "tabular format" including the gridlines.

Our service provider issued a Reg DD Q&A last month in which they showed the format in Sample Form B-10, however when we saw a sample statement a earlier this month the gridlines were not included.

We are supposed to test the statements in our testbank this week. I'm keeping my fingers crossed...

If there is one thing that I don't like about the Fed's implementation of rules is that there are too many cases in which it buries its intent or interpretation of the rules in the Analysis portion of the Federal Register publication document, which doesn't become part of the CFR, rather than in the regulation or Official Staff Interpretations or Commentary. That's the case with the gridlines in Model Form B-10 in Regulation DD. But in the publication of the new Regulation E amendments on overdraft fees, the Fed managed to hide its intent completely.

Our vendor has already told us they will NOT be changing to a grid format. Where does that leave me?

Well, your vendor will likely change its tune if the Fed actually issues an official pronouncement that the grid is required. Statements made during an audio conference aren't the stuff that makes vendors act.

In the meantime, don't lose sleep over it. Reg DD doesn't have noncompliance monetary penalties attached to it, and I sincerely hope the Fed and other regulators will recognize the fact that the Fed did not come right out in its Federal Register document and state that the gridlines are part of the required layout.

Has anyone using Jack Henry tested to see if information on their statements is in grid format?

While we have ot tested it, we did talk with JacK Henry last week and were assured the grid lines would be on the statements.

I realize this is probably a dumb question, given that the regulation is consumer driven; but do we have to apply this to our business accounts also?

This doesn't apply to non-consumer accounts.