We would like to remind you that NCUA remains committed to assisting credit unions with the implementation of Truth-in-Savings. It also directed the National Credit Union Administration (NCUA) to issue regulations for state-chartered and federally chartered credit Accessibility, Limited English Proficiency & Exit StatementImplementation of the NCUA’s Regulatory Reform AgendaCollection of Examination & Supervision InformationNotice of Change in Official or Senior Executive OfficerElectronic Loan, Deposit & Investment Data CollectionFinancial Trends in Federally Insured Credit UnionsFrequently Asked Questions on the Low-Income Designated Area WorkbookFrequently Asked Questions on the Loss & Retention of the Low-Income DesignationCommunity Development Revolving Loan Fund Financial ReportsCorporate Asset Management Estate Recoveries & ClaimsResponding to the Collapse of the New York City Taxi Medallion MarketFrequently Asked Questions on the NCUA’s Sale of Its Taxi Medallion PortfolioFrequently Asked Questions about Taxi Medallion Lending and the NCUA’s Supervision and Response to the Medallion Market CollapseTruth in Savings Act (NCUA Rules & Regulations Part 707) REGULATIONS AFFECTING CREDIT UNIONS; Part 707. This commentary is the means by which the staff of the Office of General Counsel of the National Credit Union Administration issues official staff interpretations of Part 707 of the NCUA Rules and Regulations. In doing so, NCUA is to take into account the unique nature of credit unions and the limitations under which they pay Truth-in-Savings will require that any undistributed payroll deduction balances be considered part of a member's account balance upon which dividends will be calculated.The Truth-in-Savings Act, Section 707.7(a) of the National Credit Union Administration Rules and Regulations, requires credit unions to "calculate dividends on the full amount of principal in an account for each day."

The act … CFR ; prev | next § 707.1 Authority, purpose, coverage and effect on State laws.

The amendments are intended to enhance the consumer’s ability to notice and understand cost information generally provided in the form of a table. The disclosure requirements are intended to inform consumers about the fees, annual percentage yield, interest rate, and other terms for deposit accounts. § … As a result, we would like to bring to your attention the effect that Truth-in-Savings will have on credit unions using an Undistributed Payroll Deduction account to accumulate payroll deductions prior to posting to the members' accounts.The Undistributed Payroll Deduction account is an accounts payable that is used to hold the payroll deduction balances that have been received from the employer, but not yet posted to the members' accounts. TRUTH IN SAVINGS; 12 CFR Part 707 - TRUTH IN SAVINGS . Part 707 requires credit unions to provide disclosures so that members and potential members can make meaningful comparisons among credit unions and depository institutions.

Official status. The term "principal" is defined in Appendix A to Section 707, as "the amount of funds assumed to have been deposited." The statute directed the Federal Reserve Board (FRB) to implement regulations for all depository institutions except credit unions. This would include any balances held in an Undistributed Payroll Deduction account. These definitions indicate that the balance on which dividends are calculated is the amount that is in, applied to, or due to, a member's account. For example, weekly payroll deductions may be accumulated until the last day of the month and then posted to shares or loans and interest (if there is a loan). If the payroll deduction is mandatory, or the payroll deduction is for an open-end loan and the member does not have access to the funds, the contract would either violate Truth-in-Lending regulations or result in difficult, if not impossible, disclosure.