Phrases that Should be in 30 Day Notice

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Question:

We are currently compounding interest daily on certain accounts at our bank. We are changing to monthly but not until after our 30 day notice has been provided to our customers. My question is: are there any forms available to help me out? Can someone help me by giving me the phrases that have to be in the notice in order to be in compliance?

Answer:

The notice will need to include the following:
* Required information for disclosing the frequency of compounding (230.4(b)(2)).
* Sample verbiage can be found in the Appendix B-1
* Specific date on which the changes become effective
* To avoid possible UDAAP allegations, I recommend clearly indicating the prior compounding frequency

First published on BankersOnline.com 6/25/12