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September 22
FinCEN's Beneficial Owners Proposal: What It Can Mean for You;
Sonja Kriegsmann and John Burnett

September 23
Bankruptcy 101;
Sam Ott

September 30
Revised Escrow Rules - Review and Update;
Jack Holzknecht and Mary Beth Guard

October 7
CRA - Digging for Credit;
Patricia Cashman

October 8
Applicants and Applications: Knowing the Players and the Rules;
David Dickinson

October 15
MasterCard and Reg E: Basic Debit Card Investigations;
Brian Crow



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#1521179 - 03/14/11 10:28 AM New Interpretation - check/debit card buy back
PinnSCCompliance Offline
100 Club

Registered: 02/02/04
Posts: 107
We have just finished up an FDIC exam. We have a check/debit card buy back program for new customers where we will pay them $2 per debit card/check pad directly into their account. We've been doing this program for years and past examiners have asked questions about it but not found any violations. All of a sudden, this is considered a bonus and we must change all of marketing materials and disclosures if we wish to continue. Our marketing vendor says that they are not aware of any other banks that have had a problem with this program. Does anyone have experience with this?

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Marketing
#1521593 - 03/14/11 10:15 PM Re: New Interpretation - check/debit card buy back [Re: PinnSCCompliance]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 50028
Loc: Galveston, TX
It is not a payment for opening the account. Push back to the higher ups at the FDIC, including the ombudsman if necessary. This practice has been going on since the origins of Reg. DD and I have never heard it being cited before.
_________________________
The opinions expressed are my own, take them or leave them.

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#1523453 - 03/17/11 03:12 PM Re: New Interpretation - check/debit card buy back [Re: rlcarey]
PinnSCCompliance Offline
100 Club

Registered: 02/02/04
Posts: 107
Should we proceed now before the final report has been issued or must we wait? Our response did state that we were not in agreement with the interpretation and that we were researching it further.

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#1523466 - 03/17/11 03:23 PM Re: New Interpretation - check/debit card buy back [Re: PinnSCCompliance]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 50028
Loc: Galveston, TX
Should we proceed now before the final report has been issued or must we wait?

I would not wait until the final report is issued. Someone should be in contact with the EIC to understand the exact status of this criticism and indicate that the Bank wants to escalate this issue prior to the report being issued.
_________________________
The opinions expressed are my own, take them or leave them.

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#1523820 - 03/18/11 10:52 AM Re: New Interpretation - check/debit card buy back [Re: rlcarey]
PinnSCCompliance Offline
100 Club

Registered: 02/02/04
Posts: 107
I'm assuming the the EIC is the examiner in charge? She does know that we do not agree and we provided a new response to what she had originally included in the report because it appeared that we agreed. She forwarded this response to her review supervisor. It basically said that we were still researching this issue and did not agree with the finding. Do I need to also let her know that I am contacting the ombudsman?

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#1662554 - 02/09/12 10:02 AM Re: New Interpretation - check/debit card buy back [Re: PinnSCCompliance]
Dave M_TCA Offline
Platinum Poster

Registered: 10/30/00
Posts: 639
Loc: Wherever my most benevolent em...
Just wondering the final resolution of this situation, anyone know?
_________________________
David J Mulkerin, CRCM
All opinions expressed are mine and not those of my employer and are not to be taken as legal advice.

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