WASHINGTON (12/16/09)--On Jan. 1, 2010, all credit unions that offer overdraft services will have to comply with new Truth-in-Savings (TIS) requirements for disclosing aggregate overdraft fees on periodic statements. Under the National Credit Union Administration’s (NCUA’s) revised Part 707, all credit unions--not just those that promote overdraft services as previously required—must disclose on periodic statements the aggregate dollar amount totals for “overdraft fees” and for “returned item fees,” both for the statement period as well as for the calendar year-to-date. Banks must comply with similar rules under the Federal Reserve Board’s Regulation DD. The regulations require that the periodic statement disclosure be provided in tabular format, as illustrated in NCUA’s model form B-12. "Credit unions have asked whether they can omit the gridlines in the table, or use alternate terminology to describe the fees disclosed," according to Valerie Moss, CUNA's director of compliance information. "According to both the Fed and NCUA, credit unions must follow the model format--including showing gridlines-- and use the terms 'overdraft fee' and 'returned item fee,' even if the credit union doesn't have a formal overdraft program but still covers overdrafts for a fee," she added. This is intended to help consumers understand which items are overdrafts honored for a fee and which ones are returned unpaid. The TIS regulation also requires account balances disclosed through automated systems, such as ATM, website, or telephone response system, to exclude additional amounts the credit union may provide to cover overdrafts. Credit unions may, however, disclose a second balance that includes funds provided by an overdraft service or line of credit, so long as the institution prominently states that the balance includes these additional amounts. Use the resource links below for more information. Note that in the December Credit Union Magazine article there is an artwork error in Table 1: the gridlines were removed, but should appear in the model form.