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#1425243 - 08/06/10 02:39 PM Reg DD Truth In Savings
Bomb Mom Offline
Junior Member
Joined: Apr 2007
Posts: 39
Can someone point me where in the Reg it has information on if a customer reopens an account we have to give out a Truth In Savings Disclosure?
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General Discussion
#1425284 - 08/06/10 03:13 PM Re: Reg DD Truth In Savings Bomb Mom
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
I do not know of any consumer protection law that recognizes the idea of re-opening an account; Regulation DD does not. A "re-opened" account is a new account for all purposes and they are a wellspring of compliance errors.
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#1425531 - 08/06/10 07:19 PM Re: Reg DD Truth In Savings Elwood P. Dowd
Bob The Banker Offline
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Bob The Banker
Joined: May 2010
Posts: 958
Pete's Mom, when your institution re-opens an account, what do you consider the opening date? The original opening date, or the date it was re-opened?

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#1425543 - 08/06/10 07:28 PM Re: Reg DD Truth In Savings Bob The Banker
Bob The Banker Offline
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Bob The Banker
Joined: May 2010
Posts: 958
This may be your answer here... Commentary of DD...

Section 230.4 Account disclosures

(a) Delivery of account disclosures

(a)(1) Account opening

1. New accounts. New account disclosures must be provided when:

i. A time account that does not automatically rollover is renewed by a consumer

ii. A consumer changes a term for a renewable time account (see §230.5(b)–5 regarding disclosure alternatives)

iii. An institution transfers funds from an account to open a new account not at the consumer's request, unless the institution previously gave account disclosures and any change-in-term notices for the new account

iv. An institution accepts a deposit from a consumer to an account that the institution had deemed closed for the purpose of treating accrued but uncredited interest as forfeited interest (see §230.7(b)–3)

§230.7(b)–3. Closed accounts. Subject to state or other law, an institution may choose not to pay accrued interest if consumers close an account prior to the date accrued interest is credited, as long as the institution has disclosed that fact.
Last edited by Bob The Banker; 08/06/10 07:29 PM.
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