When is Account Considered "Opened" Reg DD

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Question:

At what point in time is an account considered "opened" for Reg DD purposes? When the consumer sits down at the desk and begins the process? When the Signature card is signed? When the first deposit is made? Currently, we provide the disclosures as part of the opening process, but not at the beginning of the process.

Answer:

In general, I'd say an account is "opened" when the first deposit is made. There's really no commitment on the consumer's part until money changes hands. Timing of Regulation DD disclosures can vary, according to 1030.4(a):

(a) Delivery of account disclosures. (1) Account opening. (i) General. A depository institution shall provide account disclosures to a consumer before an account is opened or a service is provided, whichever is earlier. An institution is deemed to have provided a service when a fee required to be disclosed is assessed. Except as provided in paragraph (a)(1)(ii) of this section, if the consumer is not present at the institution when the account is opened or the service is provided and has not already received the disclosures, the institution shall mail or deliver the disclosures no later than 10 business days after the account is opened or the service is provided, whichever is earlier.

(ii) Timing of electronic disclosures. If a consumer who is not present at the institution uses electronic means (for example, an Internet Web site) to open an account or request a service, the disclosures required under paragraph (a)(1) of this section must be provided before the account is opened or the service is provided.

First published on BankersOnline.com 7/2/12