TIS ODP Deadline Approaches

Posted by Anthony Demangone

With the changes to NCUA's Truth in Savings regulation just around the corner, I received a few questions today from folks who are undoubtedly scrambling to make sure they are in compliance.  Even though it is last minute, I thought I would share answers to the top two questions I received yesterday.

Question: Do the year-to date and monthly fee totals have to appear on our December statement?  Even though the statement period ends on December 31, we won't mail them until early January.  

Answer: No.  Here's what the official staff commentary said:

The disclosures under § 707.11(a) must be included on periodic statements provided by a credit union starting with the first statement period that begins after January 1, 2010. For example, if a member’s statement period typically closes on the 15th of each month, a credit union must provide the disclosures required by § 707.11(a)(1) on subsequent periodic statements for that member beginning with the statement reflecting the period from January 16, 2010 to February 15, 2010.  (Emphasis added.)

Question: What about when we waive a fee?  Do we have to correct totals?  

Answer: You have great flexibility on how to handle these situations.  Here's what NCUA said in the final rule:

In some cases, a credit union may provide a statement for the current period reflecting that fees imposed during a previous period were waived and credited to the account. Credit unions may, but are not required to, reflect the adjustment in the total for the calendar year-to-date and in the applicable statement period. For example, if a credit union assesses a fee in January and refunds the fee in February, the credit union could disclose a year-to-date total reflecting the amount credited, but it should not affect the total disclosed for the February statement period, because the fee was not assessed in the February statement period. If a credit union assesses and then waives and credits a fee within the same cycle, the credit union may, at its option, reflect the adjustment in the total disclosed for fees imposed during the current statement period and for the total for the calendar year-to-date. Thus, if the credit union assesses and waives the fee in the February statement period, the February fee total could reflect a total net of the waived fee. (Emphasis added.)