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#1092707 - 12/05/08 06:05 PM Need help with Change in Fees
Anonymous
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My bank wants to add certain fees and modify others. Examples would be changing the ATM/debit card replacement fee from $5.00 to $10.00 and new fee of $15.00 for foreign currency exchanges.

Executives want to apply this new fee structure to all existing and future clients of the bank.

What do we as a bank have to do in order to properly administer this new fee schedule? Can we add a statement stuffer that shows the new schedule?

What are we obligated to do?

I'd really appreciate any feedback on this issue. This was given to me 1 hour ago and of course the executive committee will be discussing the issue in their weekly meeting Monday morning.

Thanks in advance.

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#1092711 - 12/05/08 06:10 PM Re: Need help with Change in Fees Anonymous
BrendaC Offline
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BrendaC
Joined: Sep 2001
Posts: 6,029
Sweet Home AL
We generally use the statement stuffer method because it is more cost effective. If any of the fees are covered by Reg DD, you would allow 30 days after the last day of statement delivery to ensure all consumers have been given a 30-day notice. While ATM fees are not covered, advance notice is generally appropriate. You should look to your ATM and/or customer account agreement to determine what timeframe for changes has been provided to your customers.

Procedures to provide to customers receiving electronic statements should be spelled out in your E-statement agreement.
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#1092764 - 12/05/08 06:47 PM Re: Need help with Change in Fees BrendaC
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Originally Posted By: BrendaC
We generally use the statement stuffer method because it is more cost effective. If any of the fees are covered by Reg DD, you would allow 30 days after the last day of statement delivery to ensure all consumers have been given a 30-day notice. While ATM fees are not covered, advance notice is generally appropriate. You should look to your ATM and/or customer account agreement to determine what timeframe for changes has been provided to your customers.

Procedures to provide to customers receiving electronic statements should be spelled out in your E-statement agreement.


Thanks for the response!

If I'm interpreting your response correctly, the increase in charge for a lost ATM/debit card would not require the 30 day notice under Reg DD?

Aside from the ATM/debit card replacement and the foreign currency exchange mentioned above, the other proposed changes / additions are as follows:

BizPay (addition)
Closing Account (if open less than 90 days) (change which increases the fee)
Remote Deposit Capture (addition)
Night Depository Key Replacement (change which increases the fee)
Positive Pay (addition)
Stop Payments (change which increases the fee)
E-Corp Stop Payments (addition)
Ougoing Wires (change which increases the fee)
E-Corp Stop Payments (addition)
Daily Overdraft fee after 3 days overdrawn (at $3.00 per day)

Do any of the items on the list above run afoul of Reg DD, thus obliging us to give 30 days notice of the change?

Thanks again for your help!

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#1092769 - 12/05/08 06:52 PM Re: Need help with Change in Fees Anonymous
BrendaC Offline
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BrendaC
Joined: Sep 2001
Posts: 6,029
Sweet Home AL
Unless you REQUIRE the customer to receive an ATM card on the account, those fees are not activity/maintenance fees under Reg DD. The lead time to implement changes would be driven by your other agreements. This is really a moot point since several of your other fees are governed by Reg DD. Just do one statement stuffer and be done with it.
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#1092824 - 12/05/08 07:37 PM Re: Need help with Change in Fees BrendaC
Anonymous
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Thank you very much!!

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#1093307 - 12/08/08 04:23 PM Re: Need help with Change in Fees Anonymous
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,544
Cape Cod
The ATM card replacement fee on a consumer account would, I believe, be a change that requires a 21 calendar day notice under Regulation E (fee for using EFT or for right to do so).

As Brenda points out, there are other fees in your list which, if a consumer account is involved, would trigger Reg. DD change in terms requirements. The daily OD fee is one.
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#1093371 - 12/08/08 05:12 PM Re: Need help with Change in Fees John Burnett
BrendaC Offline
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BrendaC
Joined: Sep 2001
Posts: 6,029
Sweet Home AL
And, another thought...if you are changing your ACH stop payment fee for consumer accounts, you'll need to look at your Reg E disclosure as well.
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