Skip to content
GeoDataVision
Learn More - Click Here!

Thread Options
#175647 - 04/01/04 06:36 PM Brochure disclosures vs. Lobby disclosures
Mike Baker Offline
100 Club
Mike Baker
Joined: Dec 2002
Posts: 192
Tennessee
I had posted this in the "Marketing" section, but I thought perhaps it might fit in this category as well...
We have a products brochure in which we disclose fees, including those of our safe deposit boxes. It turns out that we have at least one branch, our newest one, that was told from its first day to charge a higher price than our other branches. Their "Lobby board" discloses the correct prices for the boxes at their branch. My feeling is that the brochures at that branch should have the charges corrected, either by marking through or stapling an insert [both temporary fixes] until new brochures can be printed. However, one of our bank officers is wanting to know exactly where in the regulations that it states that our brochures must match what is posted in the lobby. So far I haven't come across anything that specifically states that as such, but I feel like that they should match in order not to be deceptive in disclosing our product pricing...plus I would not want an examiner to walk in that branch and find that discrepancy. Could someone point me to something specific that would make my case...or am I wrong that this is a legitimate concern?
_________________________
"When you believe He's all you need,that will be your defining moment." [from "Defining Moment" Newsong, Sheltering Tree CD]

Return to Top
Operations Compliance
#175648 - 04/01/04 07:11 PM Re: Brochure disclosures vs. Lobby disclosures
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,801
Cape Cod
It's unlikely that federal examiners will call you on a discrepancy between brochures and actual prices when it comes to safe deposit box prices. State examiners (if they visit you) may or may not look in this area. It's simply not often looked at in bank exams.

Your state, however, may have statutes or regulations covering unfair or deceptive acts and practices. Regardless of whether there are such laws, you might be called to the bar to answer to a suit for deceptive acts.

And at best, it's just plain sloppy to have this sort of loose end when you know about it and are in a position to fix it, but don't.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#175649 - 04/01/04 09:19 PM Re: Brochure disclosures vs. Lobby disclosures
Mike Baker Offline
100 Club
Mike Baker
Joined: Dec 2002
Posts: 192
Tennessee
Thank you for your response. The question was posed to me through a 3rd party, who had talked with the bank officer. After conveying your answer to both of them, the bank officer then responded that in reality the question was whether the [to be revised] brochure needed to disclose the charges at all...to me a whole different matter which could be resolved simply by stating something to the effect "Please consult any customer service specialist to obtain more information about the sizes of boxes available and the annual rental charges." That certainly would be general information which would not conflict with any information posted on the lobby board.
_________________________
"When you believe He's all you need,that will be your defining moment." [from "Defining Moment" Newsong, Sheltering Tree CD]

Return to Top
#175650 - 04/01/04 09:39 PM Re: Brochure disclosures vs. Lobby disclosures
MackenzieS Offline
Diamond Poster
MackenzieS
Joined: Jul 2002
Posts: 1,722
Oklahoma
I agree with your suggested language for the brochure. First as John stated, this is not in the professional interest of the bank to have conflicting pricing and I wouldn't want to put my personnel through having to explain the differences.

It is not a requirement under Reg DD to disclose Safe Deposit box fees in your Truth in Savings disclosure.

2. Other fees. Institutions need not disclose fees such as the
following:

i. Fees for services offered to account and nonaccount holders alike,
such as travelers checks and wire transfers (even if different
amounts are charged to account and nonaccount holders)
ii. Incidental fees, such as fees associated with state escheat laws,
garnishment or attorneys fees, and fees for photocopying
3. Amount of fees. Institutions must state the amount and conditions
under which a fee may be imposed. Naming and describing the fee (such as
``$4.00 monthly service fee'') will typically satisfy these
requirements.

Return to Top

Moderator:  Andy_Z, John Burnett