The disclosure must reflect the terms of the legal obligation established for the accounts in question and the agreement between the consumer and the institution. This information may be made in electronic form, with the consent of the consumer. The DD Decree implements the TISA, which was part of the Federal Deposit Insurance Corporation (FDIC) Improvement Act, passed the same year – 1991. The law should promote healthy competition between institutions and establish economic stability. It also instructs banks to be more transparent about some of their guidelines and gives consumers more power to decide where they want to do their banking. The SD Regulation provides that the information communicated to consumers is clear and striking and that it is provided in writing or in another form that the consumer can keep. The information must also be clear and identifiable if this information has been combined for different accounts. The DD Regulation only applies to accounts opened by individuals and not to corporate or other organizational accounts. It has been designed to protect and strengthen non-demanding customers. DD regulation helps individuals make smart decisions about where to open financial accounts.
The Regulation applies to custodian banks other than credit unions. It was adopted to help consumers make more meaningful comparisons and make more informed decisions about the accounts they have opened with custodian banks, which provide the above information through disclosures. These disclosures are given to consumers at different times, even if an account is opened for the first time. The SD Regulation was amended in 2006 to address issues such as concerns about the uniformity of information provided to consumers in the event of deposit overdrafts. In 2010, additional amendments were added that require custodian banks to comply with regulatory changes related to the disclosure of aggregated overdraft and return charges in periodic accounts. Those amendments also contained a provision on the disclosure of balance sheets to consumers through automated systems. Under the SD Regulation, financial institutions are required to provide consumers with information on the effective annual return, interest rates, minimum credit requirements, account opening information and fee schedules. Advertisements are made available to consumers: the established advertising rules apply to individuals, including deposit intermediaries, who advertise the types of accounts offered by the institutions subject to the Regulation. Marketing rules limit establishments to advertising in one way or another, which could mislead consumers, present inaccurate information or, on the other hand, distort the contract on the current account. Ads cannot use the notion of profit if they refer to the interest paid on an account….