We are having a bit of a controversy over the recently updated WK "Terms and Conditions" document.
First Issue:

One camp is stating that each page of the (now) 7 page agreement must be initialed and retained.

The opposite camp is stating that a "checkbox" on the signature card "acknowledging the receipt of the T&C AND accepting the T&C" is adequate and no initials and retention would be required (retaining the signature card of course).

I've read both responses on BOL.

Second Issue:

One camp is stating we can implement the new T&C without mailing a copy to all account holders. "No bank I've even worked at has done that."

The opposite camp says we must mail a new T&C to each accountholder.

Would anyone like to chime in on what they may have done when updating an account agreement?

We don't use WK, but I'm presumint it is simiar to our DepositPro Account Agreement, which is also multiple pages. We have the customer sign the signature card, which contains language that the customer has been given and agrees to the Account Agreement. We keep copies of the Signature Card, but NOT the Account Agreement.

I've not thought about it before, but in checking our Account Agreement, it does state that the cusotmer agrees to the terms and conditions as set forth in the Agreement, as amended from time to time. However, it's not clear to me if we would have to actually send them another if amended.

Whether you need each page initialed is a question best asked of your legal counsel as this will be based on State contract law.

Without the delivery of the new terms and conditions to existing account holders, how can you apply any changed or additional terms to those accounts. You cannot unilaterally change a contract without notice to the other party.

Anyone arguing that a document should be initialed on every page should have a pretty specfic reason for saying that; i.e. something more than a personal opinion. Moreover, the fact that you required them to initial every page presupposes that you are going to keep a copy of each contract. Right?

Banks use adhesion contracts; i.e. there is no negotiation, the customer can take it or leave it. Generally, they are enforceable after the customer signs that document or another document which incorporates it by reference and acknowledges he got a copy. If he didn't, all he has to say is "I don't know what it said, I never got a copy" and the judge will likely say there was no contract.

Your existing contract may give your bank a unilateral right to amend it in the future, but I doubt that it says you can change your agreement with the customer without at least giving them a copy and, perhaps, even a little bit of advance notice.

You'll talk to your attorney rather than let the tribe make the decision, but if you want to enforce it in court, give your customer a copy and keep records indicating what you sent them, to whom it was sent, and when it was sent.

Same boat here with WK changing their T & C. I am reviewing the changes and working on updating the new account opening disclosures.

There are A LOT of changes/updates made by their legal department - not just a sentence or two. Given the number of changes I don't see any way not to provide an updated T & C to all existing customers (some might argue it's not worth the time & money to provide a new one if there is only a minor change - take the risk - not the case here - too many changes.)

My question is, if I provide the updated T & C as part of a statement stuffer, does the new copy have to hightlight or differentiate what has changed (like we do for changes to our fee schedule) or is simply providing a new disclosure enough?

I fear the answer is "yes you need to highlight the changes" but so many things got re-worded, added, deleted - highlighting is easier said than done. Thoughts?

Just indicate that this agreement in its entirety supersedes all previous agreements.

It's Regulation DD that requires you to draw attention to any changes to the information you were required to disclose. Your signature card/contract isn't governed by the regulation so a synopsis of the changes would likely be a courtesy, not a requirement.

Review the proposed changes and make your own decision about whether they are worth the time and expense...

Thanks Ken & RL! As if there wasn't enough going on in the world of compliance right now.