Reviewing our deposit account agreement disclosure and found a typo error. When disclosing notification requirements concerning altered checks, forgeries, etc.. the agreement states we would not be liable for such items unless notified "60" days after the statement and the altered or forged items are made available. It is supposed to state "30" days. It was corrected to state "30" days. Should a notice of change been sent out to customer's 30 days before it was corrected? If so, should we send out the notice now? I really don't know what to do next on this. Any help would be appreciated.

Since the "change" is to their benefit, I don't think the notice 30 days before applies.

The customer now has 30 days to inform of forgery rather than 60 days... how does that benefit them?

Not sure if this term would be covered by Reg DD or contract law... I would think an advance notice would need to be required, but would have to look into it.

Oops, I read that backwards. Forget what I said.

It's a contract issue, and it's important you get the information to your customers if you want them to be bound by it. But it's not a TISA disclosure item, so you have no regulatory timing problem. Follow whatever your contract says about notifications of changed contract terms.

Thanks everyone for the input. It helped alot I appreciate it.