Congress enacted the Truth in Savings Act (TISA), 12 U.S.C. 4301, based on findings that economic stability would be enhanced, competition between depository institutions would be improved, and consumers’ ability to make informed decisions regarding deposit accounts would be strengthened if there was uniformity in the disclosure of interest rates and fees. The purpose of the act and regulation is to assist consumers in comparing deposit accounts offered by depository institutions, principally through the disclosure of fees, the annual percentage yield, the interest rate, and other account terms.
Historically, TISA has been implemented in the Federal Reserve Board’s Regulation DD (Board), 12 CFR Part 230, and, with respect to credit unions, by regulations of the National Credit Union Administration (NCUA),12 CFR Part 707. The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) transferred the Board’s rulemaking authority for TISA to the Bureau of Consumer Financial Protection (CFPB), effective July 21, 2011. The CFPB has published for public comment an interim final rule establishing a new Regulation DD (Truth in Savings), 12 CFR 1030, implementing TISA.
The interim final rule substantially duplicates the Board’s Regulation DD as the CFPB’s new Regulation DD, making only certain non-substantive, technical, formatting, and stylistic changes. To minimize any potential confusion, the CFPB is preserving where possible past numbering systems by republishing regulations with CFPB part numbers that correspond to regulations in existence prior to the transfer of rulemaking authority. The interim final rule does not impose any new substantive obligations on regulated entities.
A copy of revised Regulation DD is located at: The Federal Register copy is available at: https://www.jackscomplianceresource.com/CFPB-The-Inherited-Regulations.html.
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