Five Star Credit Union

Federal Financial Regulations D, Z and E

REGULATION Z
The Truth in Lending Act (TILA, also called Regulation Z) of 1968 with modification over the years is a United States federal law designed to protect consumers in credit transactions, by requiring clear disclosure of key terms of the lending arrangement and all costs.

The purpose of TILA is to promote the informed use of consumer credit, by requiring disclosures about its terms, cost to standardize the manner in which costs associated with borrowing are calculated and disclosed. TILA also gives consumers the right to cancel certain credit transactions that involve a lien on a consumer's principal dwelling, regulates certain credit card practices, and provides a means for fair and timely resolution of credit billing disputes.

The lender must disclose to the borrower the annual percentage rate (APR). The APR reflects the cost of the credit to the consumer. It may contain things other than interest such as origination fees and discount points. The Truth-in-Lending Act defines "finance charge" as all fees paid either directly or indirectly by the person to whom the credit is extended, incident to the extension of the credit. For more details click here.

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REGULATION D (DD)
The Truth in Savings Act (TISA, also known as Regulation D or DD) is a United States federal law that was passed on December 19, 1991. It established uniformity in the disclosure of terms and conditions regarding interest, dividends and fees when giving out information on or opening a new savings account.

The Truth in Savings Act requires the clear and uniform disclosure of rates of dividends and interest (annual percentage yield or APY) and the fees that are associated with the account so that the consumer is able to make a meaningful comparison between potential accounts. For example, a customer opening a certificate share account must be provided with information about ladder (tiered) rates (smaller interest rates with smaller deposits) and penalty fees for early withdrawal of a portion or all of the funds.

The Act is only applicable to deposit accounts that are held by a "natural person" for personal, household, or family use. Accounts owned by businesses or non-profit organizations are not subject to these rules. For more details click here.

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REGULATION E

The Electronic Funds Transfer (EFT) Act, also known as Regulation E, was first implemented in the US in 1978 to establish the rights and liabilities of consumers as well as the responsibilities of all participants in EFT activities. Because of the fast growing use of electronic funds transfers, consumers should review their statements for any errors or evidence of unauthorized use.

EFT services include transfers through automated teller machines, point-of-sale terminals, automated clearinghouse (ACH) systems, telephone bill-payment plans in which periodic or recurring transfers are contemplated, and remote internet programs.

The Credit Union's efforts to secure electronic banking does not secure the internet or the transaction of information over the internet. The Credit Union does not provide protection for email transfers or data transfers utilizing your personal computer. The Credit Union shall not be liable for any loss, harm or fraud resulting from the introduction of a computer virus, worm or other malicious code in your computer or access device. For more details click here.

If you click above you will be temporarily leaving the Five Star Credit Union web site to go to a third-party's web site. Links are not under the control of Five Star Credit Union and Five Star Credit Union is not responsible for their content.

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