Our system tracks Reg D violations per statement period, as stated in the account agreement provided to the customer.

When a customer has an ACH transaction in their Savings account, a statement is generated for that month, thus the Reg. D system tracks only the transactions for that month and possibly the month before the statement.

Customers who do not have ACH activity are under the transaction violation rule for 3 months since their statement cuts off quarterly.

This doesn't seem fair, any banks had to deal with this issue?

The regulation allows three options -- a calendar month (which I believe could also mean from the Nth of each month to the Nth of the following month), a statement cycle, or a "similar period of at least four weeks."

For savings accounts that don't have regular monthly statements, I recommend moving to a monthly period that can either use the calendar month or the Nth to Nth variation (with N corresponding to the expected savings statement cycle date).

Thanks for the quick response!

So if we change the Savings to "calender", which I believe is now an option on our system (prior to this only statement was available), we'll need to change our account agreement to reflect this also? Will notice to existing savings customers also be in order?

Yes and yes. I'd recommend using a statement message on the next quarterly mailing. If no one is going to read it anyhow, why go to extra trouble?

We have quarterly statements on our savings accounts, but our savings system tracks by calendar month for excessive Reg D transactions. Maybe yours is doing the same???