Regulation DD

Posted By: BabyB

Regulation DD - 04/21/11 06:55 PM

In regards to section 230.3 of Reg. DD is states that disclosures are required to use consistent terminology when describing terms or features that are required to be disclosed. Would account information and descriptions found on the Banks website (available for consumers) be held to this requirement? i.e. monthly fees etc. Or would this only be looked at in light of UDAP if the terms are not consistent?
Posted By: rlcarey

Re: Regulation DD - 04/21/11 07:01 PM

I have seen the FDIC cite banks for Reg. DD violations based on using inconsistent terminology between the initial disclosures, periodic statements and any and all advertising, including that on a bank's website.
Posted By: BabyB

Re: Regulation DD - 04/21/11 08:20 PM

Any thoughts on the UDAP side of it?
Posted By: rlcarey

Re: Regulation DD - 04/21/11 09:08 PM

Why would they cite it as a UDAP when they can tie it to a direct violation of an existing regulation?
Posted By: BabyB

Re: Regulation DD - 04/21/11 09:16 PM

Well, our thought is that UDAP is being looked at in every aspect of banking, even where you least expect it! So it could possibly be cited as a Reg DD AND UDAP violation. That is why I'm questioning it. I want to make sure that all the bases are covered and that I'm not miss interpreting anything.
Posted By: rlcarey

Re: Regulation DD - 04/22/11 02:13 AM

Well I guess if the website was worded in a manner that was deemed outright deceptive, than you could face a UDAP violation also. But if you were just referring to a "monthly service charge fee" rather than a "monthly fee", which not might be consistent under Regulation DD, I would be hard pressed to see how that would be a UDAP.
Posted By: DeeQ

Re: Regulation DD - 04/25/11 03:32 PM

BabyB, you may want to read ABA's magazine when it comes out. There is a nice article about the longer reaching arm of UDAP.