We're in the "let's check and see what we can do stage".
We want to promote/advertise credit cards. Can someone point me in the right direction or help me with if we can or shouldn't do this.
Management wants to pre-approve some of our existing customers based on criteria such as average deposit balance, no insufficients, etc. We will not be obtaining prescreening information from a credit bureau, nor will we be taking into consideration if the customer has a loan with us, and if they do, we will not be reviewing the credit report or credit score on file. We want to offer a preapproved small dollar amount credit card to "good" deposit account holder customers.

If you are using criteria only based on your own account experiences, then all you have to worry about is fair lending.

Besides Randy's answer consider that having cash and having credit are two separate things, that may or may not relate to each other.

So you have a bankrupt person that got a subsequent large settlement that is sitting in your bank. Give them a card? They meet all the criteria. I do not believe that settoff is allowed if the credit card heads south.

Thank you both for your responses!!
If I'm understanding what I'm reading in Reg Z, we are also permitted to mail consumers a credit card application as a marketing tactic as long as we provide the Reg Z tabular format disclosure found in appendix G in the direct mailing. Is that your understanding as well?