If a financial institution issues a debit card to a customer who has an existing atm card, is the debit card considered "unsolicitated"?
Answer by Andy Zavoina, BOL Guru BIO AND CONTACT INFO Question: If a financial institution issues a debit card to a customer who has an existing atm card, is the debit card considered "unsolicitated"?
Answer: 205.5 allows you to send an access device unsolicited so long as it is not activated and cannot be used. This is to protect the customers accounts from fraudulent withdrawals.
If this is a credit card (refer to comment 2(a)(15)-2 of Reg. Z) it cannot be sent unsolicited. If this is deemed as a reissuance it still should be sent deactivated. The consumer has no liability until they accept the card. This sounds though, more like a new card with new features, replacing an existing and unexpired card.
A comment period just ended which discussed revising "Z's" commentary to allow an unrequested card to be sent as a renewal of or substitution for an accepted card. Until this is solidified, you should refrain, in my opinion.
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