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#1417389 - 07/20/10 04:17 PM Change in Fees - Opt out
Angel Eyes Offline
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Angel Eyes
Joined: May 2001
Posts: 4,599
Looking for any clarification someone might have with regard to 226.9(c)(2)(iv)(3)
"For accounts other than credit card accounts under an open-end (not home-secured)consumer credit plan subject to 226.9(c)(2)(iv)(B), a statement indicating the consumer has the right to opt out of these changes, if applicable, and a reference to additional information describing the opt-out right provided in the notice, if applicable;"

It seems to me they missed something in the above language, an "or" perhaps. Is it acceptable to say that neither option is applicable and move on.

We are planning on increasing the annual fee for our product. We will of course follow the requirement under 226.9 regarding the timing, and content, but my initial interpretation is that we could avoid this particular requirement, by saying an opt out is not applicable. Of course it is understood that if they don't like the fee increase they could close the account, but if I don't have to disclose that I would rather not.

Any insight would be appreciated.

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#1417391 - 07/20/10 04:20 PM Re: Change in Fees - Opt out Angel Eyes
RR Joker Offline
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RR Joker
Joined: Nov 2002
Posts: 20,654
The Swamp
My understanding is that it IS required. What is or isn't applicable, is the "additional info decribing" may or may not be in the notice.
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

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#1417439 - 07/20/10 05:39 PM Re: Change in Fees - Opt out RR Joker
Angel Eyes Offline
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Angel Eyes
Joined: May 2001
Posts: 4,599
Thanks RR Joker cool

I believe that is the intent....but it doesn't read as such.

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#1417528 - 07/20/10 07:22 PM Re: Change in Fees - Opt out Angel Eyes
RR Joker Offline
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RR Joker
Joined: Nov 2002
Posts: 20,654
The Swamp
typical regulatory language. Another part of "as applicable" is as it pertains to those particular sections, or pieces thereof. You may change one fee, but not another listed fee, for intance...so you list, "as applicable".
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

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