If you have a HELOC or PLOC loan and at consummation you attach the DDA to the loan so advances can be initiated through the DDA, do you provide an EFT disclosure? My experience and answer would be no as it is a consumer deposit law and I have never done this. What we have done is disclose on the loan agreements the ways the monies can be advanced and additional Reg Z termonolgy regarding the credit card act as the advance could occur due to a cash card purchase/advance (which they view as a credit card). We also ensure the back of our statement comply. Thanks! Did you know the hardest part of changing jobs/banks is adjusting to their practices?

Well first, if they have a debit card issued on the DDA, they should already have an EFT disclosure.

Second, 1026.13(i) Relation to Electronic Fund Transfer Act and Regulation E. If an extension of credit is incident to an electronic fund transfer, under an agreement between a consumer and a financial institution to extend credit when the consumer's account is overdrawn or to maintain a specified minimum balance in the consumer's account, the creditor shall comply with the requirements of Regulation E, 12 CFR 1005.11 governing error resolution rather than those of paragraphs (a), (b), (c), (e), (f), and (h) of this section.

I assume this is an active real DDA account and not a dummy account linked to the HELOC to allow card access. If the later, you are in violation of your debit card issuer's agreement.

So, the card is linked to the DDA only. The HELOC does not have a card attached to it directly, but if the DDA is overdrawn using the card, which in return drew funds from the HELOC to cover the transaction, Reg E would be required on the HELOC at the time note was produced. We always disclose Reg E with deposit products at opening and if a service is added at a later date. Thanks much for your responses.

"Reg E would be required on the HELOC at the time note was produced."

Techincally no. A Regulation E disclosure is never required to be given on a consumer liability account. The Regulation E disclosure is given in connection with the asset (DDA) account and should have been delivered at the time that account opened and/or when the debit card was issued. You are not adding an access device to the DDA account as the debt card is already in existence. No new Reg. E disclosure is required.

This section and commentary have me confused. Our HELOCs do not have access cards. We do offer overdraft lines of credit tied to checking accounts. So if you overdraw your checking account, it will advance funds from the overdraft line of credit and deposit them to your deposit account automatically. If this is done incorrectly, triggering a billing error, does it follow Reg E or Reg Z or both????