Good Morning - question regarding a change in our terms & conditions. Our forms processor recently notified us that there would be changes made to our terms & conditions. This mainly was happening to include the Military Lending Act amendments however they are taking this opportunity to make some other revisions at the same time. My question is this: Do the changes being made to the terms & conditions need to be highlighted on the copies being mailed to existing customers?

Thanks

I would be asking my legal counsel.

I do not understand...your forms processor makes the determination of changes to YOUR terms and conditions on your products?

We work with a company that keeps our forms up to date and in compliance. Whenever there is any kind of update in the compliance world they make sure we are notified and we are using the most up to date current forms and terms & conditions. Obviously we approve the final proof - but yes they inform us if something needs updated. Our disclosures on our products have been created by us but the terms & conditions are done by them and any information that pertains to us in particular has been added.

You act as if this is a strange situation but this is a pretty large company and I know they have other clients. We have been using them for years.

I won't specify the form vendor in a public forum, but I know that they have their lawyers reviewing recent court cases, UDAAP citations, best practices, etc. and then making recommendations for changes to the deposit contract. I received this same question from one of my clients yesterday following a long presentation from the vendor.

Randy's advice is sound and is the same answer that I provided to my client. You can either rely on their attorneys and buy what they are selling you, or you can confer with your own counsel and determine if these changes are truly needed.

I would also add that when using the term "compliance" remember that most of the changes update the legal contract and are not related to compliance with federal regulation which is why we can't provide more definitive guidance.

And they make sure you buy new forms for changes that are probably not really necessary.

Thank you Brian and Randy. I will talk to my VP about this and see how they want to handle it.

I appreciate it.

Thanks for the clarification Bankwoman1. It seemed odd to me because ours is done in-house...but what you explained makes sense. Thanks.