My question involves circumstances under which an account disclosure must be given to consumers pursuant to 12 CFR 230.4(a)(2).

Assume the following scenario: Ken and Kathy Sally are interested in learning about the bank's available checking or savings products. They are not yet ready to open an account, but they request an account disclosure for review. Am I correct in saying that the disclosure must generally be the same as the disclosure that would be provided if they were actually opening an account of the same type? Must that pre-opening disclosure meet the requirements of 230.4(b) or 230.8(c)? Also, what if the new accounts rep. gives them a printout of a screen from the bank's website for informational purposes, but the consumers did not specifically ask for any disclosure?
Would that be permissible? In this case, the website advertising disclosure would meet the conditions of 230.8 but not 230.4.
Thanks for your responses.

If the Sallys request a disclosure, give them a disclosure that meets the §230.4 requirements -- the one you would give new customers for the accounts on which the Sallys are inquiring. In my experience, if it meets §230.4 requirements, it meets §230.8 rules, too.

If they are only asking for general information and you hand them something from your Web site, make sure it passes the ad requirements in §230.8. But the disclosures will give them more information and may be preferable.

We provide the same disclosure to consumers whether they open an account or not. Our booklet contains all the requirements of Truth In Savings as well as all other regs that require disclosure. We found that it works very well.

[This message has been edited by De Vonne (edited 03-23-2001).]

If your bank uses a deposit platform system, will the system print a complete disclosure any time or only when an account is being opened? In some cases, a deposit automation system might not print a complete disclosure until an account is actually being opened. Must a bank then have a paper brochure or pamphlet to provide a "potential customer?"

Stev--
§230.4(a)(2) of Regulation DD reads --

quote:

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(2) Requests.

(i) A depository institution shall provide account disclosures to a consumer upon request. If the consumer is not present at the institution when a request is made, the institution shall mail or deliver the disclosures within a reasonable time after it receives the request.
(ii) In providing disclosures upon request, the institution may:
(A) Specify an interest rate and annual percentage yield that were offered within the most recent seven calendar days; state that the rate and yield are accurate as of an identified date; and provide a telephone number consumers may call to obtain current rate information.
(B) State the maturity of a time account as a term rather than a date.

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While you don't have to provide the disclosures in the same format that you would use for new accounts, you do, with the exceptions in (A) and (B) above, have to provide "shoppers" the same information you provide for consumers opening an account. This is in the spirit of one of the major purposes of the Truth in Savings Act, which is to provide consumers with comparative rates and fees so as to make informed choices.

One solution is to see if your system will print a blank disclosure without rates, dates, etc. Then, you can provide with it current rate information (with the dating and caveats listed in the quoted regulatory text).

Good luck!

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John Burnett
Cape Cod Bank and Trust