I’m pouring over 226.5, and would really like to know if I have this correct.

Situation: Our customer, that was acquired through an acquisition, has a credit card that expired. Before the card expires, we contact the customer, explain that we do not offer that product, and cross-sell our comparable product. The customer accepts the offer. Since we initiate this situation, 226.5a(e) applies, right?

If the customer called us to renew the card, and we explained that we no longer offer…and cross-sell our comparable product, customer accepts, then 226.5a(e) does not apply?

Similarly, if a customer submits a take-one application that we no longer offer, (this happens in branches when they don’t properly destroy old apps, or take-ones that are outside of our branches that aren’t properly destroyed). When this happens, we offer the new product that replaced the old, again, since the customer originally initiates this situation, I don’t believe 226.5a(e) applies.

5a(d) Telephone applications and solicitations.
1. Coverage. This paragraph applies if:
- A telephone conversation between a card issuer and consumer may result in the issuance of a card as a consequence of an issuer-initiated offer to open an account for which the issuer does not require any application (that is, a preapproved telephone solicitation).
- The card issuer initiates the contact and at the same time takes application information over the telephone.
This paragraph does not apply to:
- Telephone applications initiated by the consumer.
- Situations where no card will be issued--because, for example, the consumer indicates that he or she does not want the card, or the card issuer decides either during the telephone conversation or later not to issue the card.

5a(e) Applications and solicitations made available to general public.

1. Coverage. Applications and solicitations made available to the general public include what are commonly referred to as take-one applications typically found at counters in banks and retail establishments, as well as applications contained in catalogs, magazines and other generally available publications. In the case of credit unions, this paragraph applies to applications and solicitations to open card accounts made available to those in the general field of membership.

2. Cross-selling. If a card issuer invites a consumer to apply for a credit or charge card (for example, where the issuer engages in cross-selling), an application provided to the consumer at the consumer's request is not considered an application made available to the general public and therefore is not subject to §226.5a(e).