Reg DD - Posting Fee Change in Branch Lobbies

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Question:

I'm trying to find in the commentary of Reg DD if I can post a notice of change to our schedule of fees in the branch lobbies thirty calendar days in advance of the change and be in compliance with the delivery of the change rule under 230.5(a). I intend to include the change with my quarterly statements as well, but the member will not actually receive the notice within the thirty day time frame because of the mailing lead time needed to produce, stuff and mail the statement. I'm trying to have the fee increases take effect 8/1/08.

Answer:

Assuming the fees that are changing are fees required to be disclosed under Reg DD, I don't think you can get by with a lobby notice. The regulation says that the notice must be mailed or delivered thirty days prior to the effective date of the change. There is no provision in the Reg or commentary for delivery to occur via a lobby notice and a lobby notice would not be able to reach all affected consumers at least thirty days prior to the change, so it is non-compliant.

First published on BankersOnline.com 8/11/08