Is a Truth in Savings Disclosure required on IOLTAs?

No. Check out the definitions of "account" and "consumer" in section 1030.2. Because an IOLTA is held by a customer holding funds for others in a professional capacity, the customer isn't a consumer and the account is not a consumer account.

There are two places in every regulation that you start with to determine whether the regulation applies -- any statement of the scope of the regulation (usually in the first section of the regulation) and the section with definitions (almost always the second section, but check the list of section numbers and titles just in case).

I would say "No." The account is opened in accordance with the rules of the state's Supreme Court regarding the ethics of the legal profession. It is not opened for personal, family, or household use.

If we change the balance/rate tiers on an IOLTA, do we notify both the attorney AND the BAR? Just the BAR?

I not sure there is any notification requirement in South Carolina as long as you are paying the minimum benchmark rate or the bank is paying comparable rates to its IOLTA and non-IOLTA customers.

Randy, just to be clear, if I (Compliance) learned after the fact that the tiers were changed, whereby the balance required to earn the stated rate of interest on our rate sheet has increased, should we communicate that fact to the attorney who owns the account? I understand it is a commercial account and TISA does not apply. Concerned about UDAAP. How would your handle?

Thanks!

What do you do for all your other commercial accounts? Would you not have to notify them of any change in the contract? I don't think this concern would not be limited to IOLTA accounts.