I am in the process of reviewing a new periodic statement the bank will be using due to switching to a new platform. When it comes to the Reg E notice and account reconciliation form, we send this with every statement. Can someone point me to where I can find information on what the form should encompass so I can determine this is new form is in compliance?

You are required to send the error resolution notice with the statements or no less than annually. Anything else is pretty much a business decision.

I am not questioning about sending the error resolution notice but rather the information in the notice and ensuring it's correct. Maybe I'll take our current notice and compare the two if there is no regulation spelling out what is needed in the notice.

Why would you not be comparing it to the model language in Appendix A to Regulation E?

1005.8(b) Error resolution notice. For accounts to or from which electronic fund transfers can be made, a financial institution shall mail or deliver to the consumer, at least once each calendar year, an error resolution notice substantially similar to the model form set forth in Appendix A of this part (Model Form A-3). Alternatively, an institution may include an abbreviated notice substantially similar to the model form error resolution notice set forth in Appendix A of this part (Model Form A-3), on or with each periodic statement required by § 1005.9(b).

Because I could not find the model language which is why I was asking where it was located.

I see now it's A-3.

rlcarey, our current notice has a section in it called In Case of Errors or Inquiries About Your Revolving Credit Bill.

This section too wants the customer name and account number, description of the error, and dollar amount of suspected error. The paragraph goes on to state, "If you have authorized your bank to automatically pay your bill from your checking or savings account, you can stop or reverse payment on any amount you think is wrong by mailing your notice so the bank....This is a summary of your rights; a full statement of your rights and the bank's responsibilities under the Federal Fair Credit Billing Act will be sent to you both upon request and in the response to a billing error notice."

This sounds like an error resolution section for bill pay or or automatic payment of a loan. I didn't see in Reg Z any model language, that would need to be in the error resolution notice, but don't know where the above information is coming from. Thoughts?

I might add that the new error resolution notice that we are looking to use does not contain the above verbiage.

Sounds like a version of Model G3 or G-4 from Regulation Z. Is this statement stock used for open-end credit plans also?

rlcarey, yes this stock would be used for our HELOC's accounts that get combined with a customer's regular account statement. So, I feel we would need to keep this verbiage on the notice.

I will say that we used to have a credit card portfolio too which is maybe why that verbiage was on there.

If you are using a single statement stock for multiple types of products, I would suggest that you be very clear on which products any required disclosures cover to avoid customer confusion and UDAAP issues from the regulators.

rclarey, that is a good point - thank you for that.

One more thing before I move on from this topic - Do you know of any reason why our core processor would be putting the following paragraphs on the Error Resolution Form:

Payment Information Please mail or deliver your payment to the fiancial institution at the address indicated on the reverse side hereof. Payment received on weekends and holidays....To avoid additional Interest Charges, pay your Balance in Full...."

Interest Charge - The Interest Charge on your account is caluculated by applying the different Periodic Rates to the appropriate range of the outstanding daily balance of your account. The outstanding balance is calculated by using the beginning.....The Interest Charge may be determined as follows" (then it lists steps 1-4)

Use of the Average Daily Balance - The average daily balance is or can be multiplied by the number of days in the billing cycle and the periodic rate applied to the product to detmine the amount of interest charge. To calculate the average daily balance....."

This all sounds like Promissory Note language or language that should be disclosed elsewhere when it comes to a loan. Are you familiar with the language being on an Error Resolution Form?

Have you looked at the periodic statement requirements in Regulation Z 1026.7? Have you looked at the Model Statements and Language in Appendix G? Have you looked at the payment requirements in 1026.10? Depending on what sort of accounts you use the statement stock for and how you want to manage the accounts, some of these are probably required to be made.