(a) Disclosure
of total fees on periodic statements.
(1) General. A depository institution must separately disclose on each periodic
statement, as applicable:
(i) The total dollar amount for all
fees or charges imposed on the account for paying checks or other
items when there are insufficient or unavailable funds and the account
becomes overdrawn, using the term “Total Overdraft Fees;” and
(ii) The total dollar amount for all
fees or charges imposed on the account for returning items unpaid.
(2) Totals required. The disclosures required
by paragraph (a)(1) of this section must be provided for the statement
period and for the calendar year-to-date;
(3) Format requirements. The aggregate fee disclosures required by paragraph (a) of this
section must be disclosed in close proximity to fees identified under
section 1030.6(a)(3), using a format substantially similar to Sample
Form B-10 in Appendix B to this part.
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(b) Advertising disclosures for overdraft services.
(1) Disclosures. Except as provided in paragraphs
(b)(2) through (4) of this section, any advertisement promoting the
payment of overdrafts shall disclose in a clear and conspicuous manner:
(i) The fee or fees
for the payment of each overdraft;
(ii) The categories of transactions for which a fee for paying an
overdraft may be imposed;
(iii)
The time period by which the consumer must repay or cover any overdraft;
and
(iv) The circumstances under
which the institution will not pay an overdraft.
(2) Communications
about the payment of overdrafts not subject to additional advertising
disclosures. Paragraph (b)(1) of this section does not apply
to:
(i) An advertisement
promoting a service where the institution’s payment of overdrafts
will be agreed upon in writing and subject to Regulation Z (12 CFR
part 1026);
(ii) A communication
by an institution about the payment of overdrafts in response to a
consumer-initiated inquiry about deposit accounts or overdrafts. Providing
information about the payment of overdrafts in response to a balance
inquiry made through an automated system, such as a telephone response
machine, ATM, or an institution’s Internet site, is not a response to a consumer-initiated
inquiry for purposes of this paragraph;
(iii) An advertisement made through
broadcast or electronic media, such as television or radio;
(iv) An advertisement made on outdoor
media, such as billboards;
(v)
An ATM receipt;
(vi) An in-person
discussion with a consumer;
(vii)
Disclosures required by federal or other applicable law;
(viii) Information included on a periodic
statement or a notice informing a consumer about a specific overdrawn
item or the amount the account is overdrawn;
(ix) A term in a deposit account agreement
discussing the institution’s right to pay overdrafts;
(x) A notice provided to a consumer,
such as at an ATM, that completing a requested transaction may trigger
a fee for overdrawing an account, or a general notice that items overdrawing
an account may trigger a fee;
(xi) Informational or educational materials concerning the payment
of overdrafts if the materials do not specifically describe the institution’s
overdraft service; or
(xii) An
opt-out or opt-in notice regarding the institution’s payment of overdrafts
or provision of discretionary overdraft services.
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(3) Exception
for ATM screens and telephone response machines. The disclosures
described in paragraphs (b)(1)(ii) and (iv) of this section are not
required in connection with any advertisement made on an ATM screen
or using a telephone response machine.
(4) Exception for indoor signs. Paragraph
(b)(1) of this section does not apply to advertisements for the payment
of overdrafts on indoor signs as described by section 1030.8(e)(2)
of this part, provided that the sign contains a clear and conspicuous
statement that fees may apply and that consumers should contact an
employee for further information about applicable fees and terms.
For purposes of this paragraph (b)(4), an indoor sign does not include
an ATM screen.
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(c) Disclosure of account balances. If an institution
discloses balance information to a consumer through an automated system,
the balance may not include additional amounts that the institution
may provide to cover an item when there are insufficient or unavailable
funds in the consumer’s account, whether under a service provided
in its discretion, a service subject to Regulation Z (12 CFR part
1026), or a service to transfer funds from another account of the
consumer. The institution may, at its option, disclose additional
account balances that include such additional amounts, if the institution
prominently states that any such balance includes such additional
amounts and, if applicable, that additional amounts are not available
for all transactions.
