For fee disclosure on periodic statements we have been given B-10 Aggregate Overdraft and Returned Item Fees Sample Form, which shows the totals according to 'this period' and 'year-to-date'. Our vendor says we do not need the gridlines in the box and also that if there are zero fees then there would be no box at all on the statement. My feeling is that the box should look as close to what the Fed issued as possible,that is with the gridline and also the box should be displayed with zero's in it regardless of fees incurred by the customer. Can anyone else let me know what they are doing, are they showing zero's and is the lay out of the box a concern for anyone else.
Thanks

If there are no fees for the cycle, nothing is printed. Once a fee is assessed, it will show in cycle and YTD. If no fees next cycle, fees assessed for cycle will be blank. YTD will continue to print on each subsequent statement.

Thank you for the response, just trying to get a sense of what other banks are doing.

Is anyone planning to print the waived fees?

As to the gridlines, you won't find anywhere in the regulation or the commentary or even in the material that accompanied the regulation and commentary in the Federal Register an explicit statement that the gridlines are to be used. What is said is that you have to used the tabular format and your disclosure should look substantially like the B-10 sample.

I believe that the Fed expects the gridlines, and your examiner will probably be looking for them. A presenter in the Fed's audiocast concerning the Reg E overdraft amendments spent a little time on the Reg DD rule, and said the gridlines are part of the deal.

You cannot add to the information in the B-10 sample. That is, you can't print the waived fees there, although you have the option of deducting them from the totals in the disclosure if you do so correctly (see the Commentary on section 230.11(c) for details).

We are having a heated discussion here about how reversed fees should be treated for the year-to-date totals. We will be making the disclosures for the first time on our January statements. The way our core system treats fee reversals is causing it to count reversals made in January against fees assessed in December in the YTD totals, resulting in a negative year-to-date total (since we did not report total fees in December). While we want fee reversals to work this way during the year, our feeling is that the YTD total should only reflect the current year. The way it looks right now, we will always have this issue at the beginning of a calendar year. I think that it will be very confusing for customers. Is anyone else reporting YTD totals like this?

Can you point me toward that section of the reg that covers when the new fee information is required on statements and whether or not it is driven by advertisement of your overdraft program?

Look at section 230.11(a).

That section used to apply only when a financial institution promoted the payment of overdrafts (advertised a courtesy overdraft program). Effective 1/1/2010, it became applicable to all financial institutions with consumer deposit accounts on which an overdraft fee or fee for returning checks unpaid is imposed.

Thanks John.

We have made the decision to not let the bankers or anyone reverse fees. They will never, ever get it correct especially in the instance of fee being assessed in one month and then reversed in another. In the example in the Federal Register, the Jan. fee reversed in Feb. it is made very clear you cannot adjust the Feb. figure down with the reversed amount (although you can adjust down the YTD). Our employees will never understand that nuance.
My biggest fear is that if we allowing the fee reversals and the monthly and YTD totals get messed up, some examiner will require a scrub of ALL accounts to make corrections since the customers were somehow misled as to how much they were paying in fees. Remember this is all about UDAP.......
So our monthly total and YTD totals will reflect gross fees and the bankers and call center have been trained to tell customers to look in the detail of the statement to note any fee reversals.

You are not required to adjust the totals if you reverse if fee. However, if you choose to adjust the totals you must do it correctly.

As for me, I see absolutely no value in attempting to keep the totals accurate. It enhances compliance risk, nothing more. These customers are not the ones that pore over their statements making sure everything is correct.

I agree; however, management is still concerned about lashback when customers see their statements with the totals (even though they have received a notice for every single OD). Our staff is doing fine with reversing fees accurately so as to reflect the correct period totals. It all comes down to a matter of interpretation regarding whether or not fees reversed for the preceding calendar year should be reflected in the current calendar year YTD totals - we disagree with our core vendor.