PRIA, Government Policy, Made Personal

Summary

Each depository institution must keep a written schedule that lists the fees, charges, interest rates, and terms for every kind of account it offers. The Bureau will make rules saying exactly what items must appear on the schedule, and the bank does not have to include anything the Bureau did not require. The schedule must explain fees and penalties (how much or how they’re worked out and when they apply), minimum balances and how they’re figured, any minimum to open the account, and full interest details (including annual percentage yield, any simple interest rate, how interest is compounded and paid, how the balance for interest is calculated, and any future rate or yield periods). It must also say any minimum balance or time needed to earn the stated rates, rules for unpaid or early-withdrawn interest, and other disclosures the Bureau requires so consumers can compare accounts. The schedule must use plain, easy-to-read language and format.

Title 12, §4303

Banks and Banking, Source: USLM XML via OLRC

(a)In general

Each depository institution shall maintain a schedule of fees, charges, interest rates, and terms and conditions applicable to each class of accounts offered by the depository institution, in accordance with the requirements of this section and regulations which the Bureau shall prescribe. The Bureau shall specify, in regulations, which fees, charges, penalties, terms, conditions, and account restrictions must be included in a schedule required under this subsection. A depository institution need not include in such schedule any information not specified in such regulation.

(b)Information on fees and charges

The schedule required under subsection (a) with respect to any account shall contain the following information:

(1)A description of all fees, periodic service charges, and penalties which may be charged or assessed against the account (or against the account holder in connection with such account), the amount of any such fees, charge, or penalty (or the method by which such amount will be calculated), and the conditions under which any such amount will be assessed.

(2)All minimum balance requirements that affect fees, charges, and penalties, including a clear description of how each such minimum balance is calculated.

(3)Any minimum amount required with respect to the initial deposit in order to open the account.

(c)Information on interest rates

The schedule required under subsection (a) with respect to any account shall include the following information:

(1)Any annual percentage yield.

(2)The period during which any such annual percentage yield will be in effect.

(3)Any annual rate of simple interest.

(4)The frequency with which interest will be compounded and credited.

(5)A clear description of the method used to determine the balance on which interest is paid.

(6)The information described in paragraphs (1) through (4) with respect to any period after the end of the period referred to in paragraph (2) (or the method for computing any information described in any such paragraph), if applicable.

(7)Any minimum balance which must be maintained to earn the rates and obtain the yields disclosed pursuant to this subsection and a clear description of how any such minimum balance is calculated.

(8)A clear description of any minimum time requirement which must be met in order to obtain the yields disclosed pursuant to this subsection and any information described in paragraph (1), (2), (3), or (4) that will apply if any time requirement is not met.

(9)A statement, if applicable, that any interest which has accrued but has not been credited to an account at the time of a withdrawal from the account will not be paid by the depository institution or credited to the account by reason of such withdrawal.

(10)Any provision or requirement relating to nonpayment of interest, including any charge or penalty for early withdrawal, and the conditions under which any such charge or penalty may be assessed.

(d)Other information

The schedule required under subsection (a) shall include such other disclosures as the Bureau may determine to be necessary to allow consumers to understand and compare accounts, including frequency of interest rate adjustments, account restrictions, and renewal policies for time accounts.

(e)Style and format

Schedules required under subsection (a) shall be written in clear and plain language and be presented in a format designed to allow consumers to readily understand the terms of the accounts offered.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2010—Subsecs. (a), (d). Pub. L. 111–203 substituted “Bureau” for “Board” wherever appearing.

Statutory Notes and Related Subsidiaries

Effective Date

of 2010 AmendmentAmendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees.

§4303 Account Schedule