Truth in Savings and Investments Act

Summary

Title I: Truth in Savings and Investments - Truth in Savings and Investments Act - Declares that a depository institution may only make references to annual percentage yields when making statements or initiating solicitations regarding accounts (thus proscribing references to specific yields or rates of interest). Mandates that annual percentage yield statements include specified disclosures in a clear and conspicuous manner. Authorizes the Federal Reserve Board (Board) to exempt advertisements, announcements, or solicitations made by any broadcast or electronic medium or advertising displays (whether or not on depository institution premises) from such requirements if the disclosures would be unnecessarily burdensome. Prohibits specified misleading or inaccurate descriptions of no-cost accounts or deposit contracts. Requires each depository institution to maintain a schedule, written in clear and plain language, of fees, charges, interest rates, and terms and conditions such as minimum balance and time requirements applicable to each class of accounts offered. Requires that such schedule be disclosed to potential customers and requesting individuals and mailed to account holders. Requires that account holders receive 30 days' advance notice of any change to be made in any term or condition required to be disclosed in the schedule if the change might reduce the yield or adversely affect any account holder. Directs the Board to require modified disclosure requirements concerning the annual yield on variable rate accounts, multiple rate accounts, guaranteed-rate accounts that mature in less than one year, and accounts for which the interest rate is not guaranteed. Mandates specified conspicuous disclosures on customers' periodic statements. Prescribes payment-of-interest guidelines. Directs the Board to provide for public notice and comment on, and to publish, model forms and clauses for common disclosures required by this Act. Provides for the enforcement of this Act and the civil liability of a depository institution that fails to comply with requirements of this Act. Sets forth limitations on such liability and factors to be considered by the court in determining class action awards. Provides that an institution may not be held liable for a violation if the institution demonstrates that the violation was not intentional and resulted from a bona fide error. Establishes U.S. district court jurisdiction and a one-year statute of limitations for actions brought under this Act. Directs the National Credit Union Administration to provide for the similar regulation of credit unions. Amends the Investment Company Act of 1940 to direct the Securities and Exchange Commission and the Board to review specified statutory disclosure requirements to assure that they are providing consumers the ability to effectively compare savings and investments options. Requires the Agency to promulgate final implementing regulations within a specified deadline. Title II: Miscellaneous Provisions - Amends the Expedited Funds Availability Act to authorize the Board to extend by one business day the time by which cash or government checks deposited in a depository institution must be made available for withdrawal if the receiving depository institution cannot reasonably make the funds available for withdrawal on the business day following the business day of deposit. Revises safeguard exceptions to next-day availability schedules with respect to notice requirements regarding large or redeposited checks or repeated overdrafts. Authorizes the Board to allocate the risk of loss and liability in connection with the payment system among the States and their political subdivisions as well as depository institutions. Authorizes the Board to modify the funds availability schedule for a specified period if it finds that: (1) a pattern of significantly increased losses at depository institutions exists that is attributable to the schedule; and (2) modification is necessary to minimize the volume of such losses. Requires a report to the Congress within ten days after such modification with reasons for the actions and any recommendations. Requires customer notification of any schedule modification. Requires the Comptroller General to evaluate and report to the Congress on changes in the payment system implemented pursuant to the Expedited Funds Availability Act and the implementation of the permanent funds availability schedule. Amends the Truth in Lending Act with respect to home equity loans to require any credit plan involving a variable percentage rate to disclose the applicable margin.

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2 official files

• Introduced in Senate (text)

  Introduced in Senate · EN

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• Introduced in Senate

  summary · EN · 16 April 1991

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