What consequence does TISA impose on institutions that do not comply with its disclosure requirements?

The choice highlighting that institutions face potential financial penalties and customer remedies accurately reflects the outcomes of non-compliance with the Truth in Savings Act (TISA). TISA establishes clear guidelines for the disclosure of terms regarding deposit accounts, ensuring that consumers are adequately informed about the costs and benefits associated with their savings products.

When financial institutions fail to meet these disclosure requirements, they can incur significant financial penalties imposed by regulatory bodies such as the Consumer Financial Protection Bureau (CFPB). Additionally, affected consumers may have the right to seek remedies, which could include restitution for any damages incurred due to the lack of proper disclosures. These customer remedies underscore the importance of compliance, as they not only promote accountability among institutions but also protect consumers from potential losses stemming from inadequate information.

Other options suggest extreme measures or a lack of consequences which misrepresent the framework of TISA. Non-compliance does not lead to the immediate revocation of operating licenses or the closure of accounts, nor is it permitted to occur without repercussions. However, the emphasis on financial penalties and customer remedies aligns with the objectives of TISA, reinforcing the need for transparency and compliance in financial practices.