Question: We would like to advertise a free checking account, but if the account is closed within 90 days there will be a fee. Can we still advertise this as free checking?
Answer: "Fees to open or close an account" are required to be disclosed under section 230.4 of Reg DD, according to the Official Interpretations of that section. Accordingly, an early closure fee cannot automatically be assumed to be of a type that would not prevent the advertising of the account as "free." On the other hand, I don't believe that an early closure fee qualifies as an account activity or maintenance charge. I see nothing in the Interpretations or regulation that directly addresses the issue, so you can probably safely advertise the account as "free." I do recommend, however, that you refer to the early closing fee in each ad for the account, even if you do so in the "mouseprint." Also, you should keep in mind that your examiners may take a different view. It's a low-risk violation, but be prepared to drop "free" from your account material if you are criticized.
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