Credit Union Website Compliance Presented By

Credit Union Website CompliancePresented By

Laws & Regulations • Interagency Guidance on Electronic Financial Services and Consumer Compliance • Interagency Statement on Retail On-line PC Banking • NCUA Regulations • 12 CFR Part 740: Accuracy of Advertising and Notice of Insured Status • 12 CFR Part 741: Requirements for Insurance • 12 CFR Part 716: Privacy of Consumer Financial Information & Appendix • 12 CFR Part 748: Security Program, Report of Crime and Catastrophic Act, and Bank Secrecy Act Compliance • 12 CFR Part 721: Incidental Powers

Laws & Regulations • Equal credit opportunity (Regulation B) • Home Mortgage Disclosure Act (Regulation C) • Electronic funds transfer (Regulation E) • Consumer Leasing Act (Regulation M) • Truth in lending (Regulation Z) • Expedited funds availability (Regulation CC)

Laws & Regulations • Truth in savings (Regulation DD) • Fair credit reporting (FACTA) • Nondiscrimination Requirements (Fair Housing Act) • Real estate settlement and procedures (RESPA) • Child On-line Privacy and Protection Act (COPPA)

FFIEC Guidance • Interagency Guidance on Electronic Financial Services • Consumer Compliance and Interagency Statement on Retail On-line PC Banking • Institutions with an Internet presence must implement a monitoring system to continually review the content and operation of the online programs • Prevent inadvertent or unauthorized changes that may affect compliance with regulations

NCUA Insurance Disclosures • NCUA-12 CFR Part 740 • The home page and Web pages that advertise or describe insured deposit products must display the official NCUA sign and insurance statement • The statement must appear with the banner

Fair Housing Act • 12 CFR Part 701.31 • The Equal Housing Lender required notice must appear with or be linked to the Equal Housing Logo

Truth in Savings (Reg DD) • When rates are stated as an “Annual Percentage Yield”: • If the abbreviation “APY” is used, that the term Annual Percentage Yield is stated at least once on the same page. • If the page states the term “interest rate” in conjunction with the APY, is it not more prominent than APY. • APYs and Interest Rates must be rounded to the nearest one-hundredth of one percentage point and expressed to two decimal points. • If the pages advertise tiered rate accounts and states an annual percentage yield it must also state all of the APYs for all tiers as well as the corresponding minimum balances required. • If stepped rate accounts are advertised, and an interest rate is given, all interest rates and APYs, and the time period they are in effect must also be stated.

Truth in Savings (Reg DD) • If the page states APY, it must also clearly and conspicuously disclose: • Variable-rate notice if applicable (statement that the rate may change after the account opened) • Time APY is offered (or is accurate as of a specific date). • Minimum balance required to obtain the APY. • Minimum opening deposit required. • A statement that fees could reduce earnings on the account (applies only to maintenance or activity fees).

Truth in Savings (Reg DD) • If the page advertises a time deposit (CD) and states an APY, the pages must also clearly and conspicuously disclose: • Any time requirements (i.e., state the term) • Disclose the early withdrawal penalties

Truth in Savings (Reg DD) • If a bonus is stated, the page must also state the following information: • “Annual Percentage Yield”, using that term • Time requirements to collect the bonus • Minimum balance required to obtain the bonus • Minimum balance required to open the account (if greater than the minimum balance necessary to obtain the bonus) • When will the bonus be provided

Truth in Savings (Reg DD) • For IRA Advertising, the web page musts adhere to the following: • The page must refrain from references to “tax-free” or “tax-exempt” • The page must refrain from claims such as “You can be a millionaire at retirement”

Privacy Notice • 12 CFR Part 716 • The privacy notice must be located on, or linked to the home page • Notice must be clear, conspicuous, reasonably understandable • Designed to call attention to the nature and significance of the information contained in the notice • Must accurately reflect the Credit Union’s practices

Equal Credit Opportunity Act (Reg B) • If on-line credit applications are accepted by the credit union the application must refrain from the following: • Information about the member’s spouse, unless the spouse will use or is contractually liable on the account or the applicant relies on the spouses income. • Information about the member’s marital status when applying for unsecured credit; when applying for secured credit the application may use only the terms married, unmarried or separated. • Information about the member’s sex, race, color, religion and national origin. • Information about child rearing or child bearing such as birth control practices, intentions or capability to bear children

Home Mortgage Disclosure Act (Reg C) • Credit unions originating first-lien home mortgages on-line must post a notice that tells consumers how to request the HMDA Disclosure Statement

Consumer Leasing Act (Reg M) • Advertising for consumer leasing products must include the specific terms of the lease and avoid using term such as “annual percentage rate” or “annual lease rate” or other equivalent terms

Electronic Funds Transfer Act (Reg E) • Websites offering any type of electronic funds transfer must include an EFT disclosure statement. The disclosure must include the following: • Liability of the member • Telephone number and address of the office to be notified in the case of an unauthorized electronic funds transfer • Definition of “Business Days” • Types of transfers and limitations • Fees

Electronic Funds Transfer Act (Reg E) • Websites offering any type of electronic funds transfer must include an EFT disclosure statement. The disclosure must include the following: • Summary of the member’s right to receipts and periodic statements • Stop payment rights • Liability of the credit union • Circumstances in which the credit union may provide information about the member’s account to third parties • Error resolution • ATM fees

Truth in Lending Act (Reg Z) • 12 CFR Part 226 • Consumer Loan Advertising • Closed-End Consumer Loans • Open End Credit Cards • Housing Loan Advertising • Open-End Home Equity Lines of Credit

Truth in Lending Act (Reg Z) • The page(s) must set forth the following in a clear and conspicuous manner: • Any minimum, fixed, transaction, activity, or similar charge that could be imposed. • Any membership or participation fee that could be imposed. • Loan rates must be expressed as an “Annual Percentage Rate” or “APR”. • If applicable, that the APR is variable. • If the page advertises variable-rate consumer credit, it must disclose that the interest rate may be increased after consummation.

Truth in Lending Act (Reg Z) • The page(s) must set forth the following in a clear and conspicuous manner: • Consumer loan pages must disclose the amount or percentage of the down payment. • Consumer loan pages must disclose the APR, and if the rate may be increased after consummation, that fact. • Consumer loan pages must avoid pictures of or characterizations that might indicate a prohibited preference for a particular segment of the population. • Consumer loan pages must include any specific term of credit required to be disclosed affirmatively or negatively.

Truth in Lending Act (Reg Z) • The page(s) must set forth the following in a clear and conspicuous manner: • Consumer loan pages must include any amount or percentage of any loan fee or estimates of other fees. • Consumer loan pages must state an Annual percentage rate. • Consumer loan pages must include any Maximum APR that may be imposed.

Truth in Lending Act (Reg Z) • If the Web site advertises a discounted initial annual percentage rate it must also include: • The period of time such rate will be in effect with equal prominence to the initial rate and a reasonable current APR that will be in effect using the index and margin. • If the page contains a statement about any minimum monthly payments, it must also state, if applicable, that a balloon payment may result.

Truth in Lending Act (Reg Z) • If the Web site advertises a discounted initial annual percentage rate it must also include: • If the page refers to any deductibility of interest for tax purposes it must contain a statement such as “consult a tax adviser regarding the deductibility of interest”. • Pages must refrain from using the phrase “free money” or other similar misleading term.

Expedited Funds Availability Act (Reg CC) • Reg CC requires that if deposit accounts are opened and/or advertised on-line that the credit union’s fund availability policy is available

Non-Deposit Investment Disclosure • Page (s) advertising non-deposit investments must be appropriately segregated from where retail deposits are solicited • To avoid member confusion, third party brokers should not offer investment products with a product name that is intentionally similar to the federal credit union’s name.

Non-Deposit Investment Disclosure • Page (s) advertising non-deposit investments must disclose the following displayed in bold face type, in a conspicuous manner: • Not federally-insured; • Not obligations of the credit union; • Not guaranteed by the credit union; • Involve investment risk

Child On-Line Privacy and Protection Act (COPPA) • All pages and/or links designed for children (aged 13 years and under) must have a statement explaining their safeguards for protecting the privacy of information they collect. This statement must include the following: • Types of personal information collected from children and the procedures used for collecting the information; • How the credit union uses the personal information; • Whether the credit union discloses the information to third parties;

Child On-Line Privacy and Protection Act (COPPA) • All pages and/or links designed for children (aged 13 years and under) must have a statement explaining their safeguards for protecting the privacy of information they collect. This statement must include the following: • Notification that the parent has the option to agree to the collection and use of the child’s information without consenting to its disclosure to third parties • Notification that the credit union may not require a child to disclose more information than is reasonably necessary to participate in an activity as a condition of participation

Child On-Line Privacy and Protection Act (COPPA) • All pages and/or links designed for children (aged 13 years and under) must have a statement explaining their safeguards for protecting the privacy of information they collect. This statement must include the following: • Notification that the parent can review the child’s personal information, ask to have it deleted, and refuse to allow any further collection or use of the child’s information and state the procedures for the parents to follow. • Notice to parents must contain the same information included on the website.

Child On-Line Privacy and Protection Act (COPPA) • All pages and/or links designed for children (aged 13 years and under) must have a statement explaining their safeguards for protecting the privacy of information they collect. This statement must include the following: • The credit union must notify a parent it wishes to collect personal information from a child. • The notice must also state that the parent’s consent for the collection, use and disclosure of the information and how the parent can provide consent. • The credit union must obtain verifiable consent

Website Compliance Checklist

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Credit Union Website Compliance Presented By