We do not use a credit score when accepting or denying a deposit account in person, do we have any disclosure requirements under Dodd Frank?

We do however, usa Experian to check for fraud on our online deposit account applications.

I am looking for information on this requirement under Dodd Frank as I have not seen anything up until I received information regarding a seminar. Thanks for any help provided.

Wel, you haven't told us what you are doing so it is difficult to express on opinion on whether or not the bank is in compliance.

Slightly related, I think: We are offering "second chance" checking accounts for lower QualiFile scores. These accounts have a higher monthly fee than our most popular accounts, and they have other modest restrictions as well.

If a potential customer comes in and only qualifies for a "second chance" account, do we still have to furnish an adverse action form?

Thanks,

West Delta

Yes:

(k) Adverse Action

(1) Actions included. The term “adverse action”

(A) has the same meaning as in section 701(d)(6) of the Equal Credit Opportunity Act; and

(B) means

(iv) an action taken or determination that is

(I) made in connection with an application that was made by, or a transaction that was initiated by, any consumer, or in connection with a review of an account under section 604(a)(3)(F)(ii)[§ 1681b]; and

(II) adverse to the interests of the consumer.

After a year in a second chance account, if the account has been positive throughout the year, can you offer them ODP of $1,000.00?

After a year in a second chance account, if the account has been positive throughout the year, can you offer them ODP of $1,000.00?

There is no legal definition of a second chance account. Some banks have made a decision to open an account for individuals that would not have previously qualified for an account at their institution.

There is nothing that states when you can offer ODP or the amounts. That is a decision an institution decides when it is accessing the risk in offering the product.

In order to avoid possible UDAAP issues, your ODP program should have guidelines to ensure that the program is offered or excluded on a consistent basis. Our ODP program has guidelines that address when an account qualifies for ODP, excessive use of ODP, and when we remove an account from ODP.

If you plan to offer ODP for accounts designated as second chance accounts, do you have the ability to identify when a second chance account meets that criteria?