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#462367 - 11/28/05 06:32 PM Disclosing number of transaction on checking accou
DinkD Offline
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DinkD
Joined: May 2001
Posts: 117
Georgia
Our disclosures for student checking does not indicate that the min. of 10 checks is allowed on the checking account. The description of the type of product does indicate the limit. Is this ok? Thanks for any help.

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Deposits and Payments
#462368 - 11/28/05 06:49 PM Re: Disclosing number of transaction on checking accou
GuitarDude Offline
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GuitarDude
Joined: Nov 2004
Posts: 5,924
So Cal
Quote:

Our disclosures for student checking does not indicate that the min. of 10 checks is allowed on the checking account. The description of the type of product does indicate the limit. Is this ok? Thanks for any help.



Do you mean "maximum" of 10 checks?

The description being in the type of product may not clearly disclose that the limit is 10 checks per statement month. The bigger question is: What happens when the customer exceeds 10 checks? Is there a per-check charge? If so, you need to disclose that as well.

You could include something like: This account allows 10 paid checks per month (statement cycle). There is a $xx fee for each paid check in excess of 10 per month (statement cycle).
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#462369 - 11/28/05 07:44 PM Re: Disclosing number of transaction on checking accou
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,593
Cape Cod
I have heard of some banks offering student accounts that require a minimum (yes, you read that correctly) number of checks per month. It has something to do with mkaing sure it's the individual's principal transaction acccount.

In such an event, I believe that disclosure of "[a]ny limitations on the number or dollar amount of withdrawals or deposits" would include any minimum limit, too. [Regulation DD, Sec. 230.4(b)(5)]
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