We've got both consumer and business debit card products. We are receiving more card requests from fiduciary accounts, and are stymied how to treat them in regards to Reg E disclosure and application. While some relationships clearly do not fit the Reg's definition of "consumer" (irrevocable trusts for example), we are seeing a lot of grey on Conservatorship and Representative Payee accounts.

How are others handling these relationships? Are you issuing a consumer card and Reg E disclosure if the account ownership and card usage falls under the consumer definition (consumer asset account/card used for household purposes)except for the fiduciary relationship? Is anyone using a business product?

We've come up with all sorts of ugly scenarios for improper disclosure and dispute resolutions. Until now, we just didn't issue cards to fiduciaries, but this is becoming more of an issue since stores are reluctant to accept checks.

You have Reg E definitions for the use of the account, as in "personal, family or household use" to qualify for coverage, and you have definitions as parts of the Reg apply to a "consumer - a natural person, and a "Person" - meaning a natural person or an organization, including a corporation, government agency, estate, trust, partnership, proprietorship, cooperative, or association.

Are you referring to sections that apply to a Consumer, or a Person? (Rhetorical - but looking at the sections of the Reg may answer your question.)

Thanks for replying Andy. I guess we're struggling with the definition of "Natural person" vs "organization". In the case of a conservatorship, would you consider that an estate and therefore and an "organization" by definition? Under which category would a Representative Payee then fall?

In both instances, account ownership and tax reporting is under the beneficiary's name, which in my book would meet the definition of a natural person.