We used to have Christmas club accounts and books where you could put in X amount of money inot your account, lets say it was a $20 club which meant that if all payments were made you would end up with $1,000 plus interest at the end of the term. We had the customer sign a signature card, OFAC, etc. Then next year if everything stayed the same we would just have them sign an addendum that everything stayed the same and would attach it to the original card. If anything changed, then we would require a new card.
We now have a computer system that lets people put in as much as they want. So, lets say that $20 club at term has $2,500 in it instead of $1,000 plus interest at term. Even though I'm the compliance officer, I have been over-ruled and it has been decided that we won't require a new signature card if the amount of the club changes from lets say a $10 club to a $20 club. We will just note it on the addendum and still keep it with the original card. My boss says we shouldn't advertise that we offer $5, $10, and $20 clubs and instead let people put in whatever they want because it won't matter since we pay interest.
Does anyone else see a problem with this or is it just me?! Please let me know what you do. Thanks!!