We offer a product that has no monthly fee when the customer enrolls in estatements. When a customer attempts to deposit a fraudulent check through mobile deposit, the current practice is to delete that customer's online banking access. We do not give the customer notice of this most times, but branch management does call the customer to get an explanation of the situation and explains that we deleted their online banking access at that time. Our account disclosures state that we must give a 10 day written notice prior to cancelling the eStatement. It mentions nothing about instances where fraud is present. I understand that this is a also a UDAAP risk since we are not doing what the disclosures say.
Would this be a situation where we should be giving the customer a change in terms notice since they will be charged a fee due to their estatement going away (1005.8(a)(I))? Do others have language in their disclosures stating that when fraud is present, this 10 day notice doesn't apply?
My recommendation was to switch the user's online banking access to read only instead of deleting the access all together or close the account since they are committing fraud. Like most recommendations I make, I'm not sure it will get through to the decision makers. I appreciate any input.