We have discovered that some of our MMDA and Savings accounts on combined statements are not set up to cycle at month end. Our core system (FiServe)generates Reg D monitoring reports on a calendar month basis.

We are having a discussion about how our disclosures should read. Currently, they state "You may only make up to six withdrawals and/or transfers each month, (a calendar month on a Savings Account or each monthly statement cycle on a Money Market Account)." We are concerned that our disclosures do not match our actual practice.

I'm sure we are not the only bank that has had this issue. I'm thinking that we should disclose "no more than six transfers and withdrawals, or a combination of such transfers and withdrawals, per calendar month or statement cycle (or similar period) of at least four weeks,…" to solve this issue.

Any thoughts?

Our disclosure states six per statement cycle.

Perhaps I didn't make myself clear:

We are also disclosing "statement cycle" on our MMDAs; however, we don't actually monitor them per statement cycle. We use a report from FiServe that reflects MONTHLY activity. So our disclosure does not match our practice.

Could this be considered a UDAP issue?

UDAAP - no. Just change your agreement/disclosure to reflect the actual practice.

I worry that by monitoring the month and not the statement cycle, how often you may miscount the transactions that happened? I recall no option in Reg D to vary that. (I know, I'm just picking Nits.)

"per calendar month or statement cycle (or similar period) of at least four weeks" -- Excerpt from Regulation D section 204.2(d)(2).

You can do your counting by calendar month, by statement cycle or by using any other span of time that's at least four weeks long. One example of the last option is often used for quarterly savings statement cycles that don't run from the 1st of a month through the end of the second month following, such as 1/1 through 3/31. If the bank's quarterly savings statements are cut on the 15th of every third month, the monitoring periods could run from the 15th of the month through the 14th of the next month.

The point of this thread, though, is that IF you are describing to customers the cycle for monitoring savings activity, you should describe the cycle you are actually using.

I'll add that if you provide this description, you should also indicate whether you work with the dates of posting or the dates of issuance with respect to checks.