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#2216828 - 07/01/19 08:01 PM Account Type Changes
ComplianceJD Offline
New Poster
Joined: Feb 2019
Posts: 2
Good afternoon,

I am looking for information from other institutions on your policy for changing account types. There are a few scenarios that have come up and we are looking for input as far as what other institutions require. In these scenarios, the product type code is changing, but the suffix remains the same. Our disclosures are the same for all deposit products, but rates and fees may vary based on product type. We understand new schedules and overdraft disclosures would be needed. Our Money Market accounts are classified as savings accounts. 

1. Checking to Checking: If you have a member that wants to change from one checking product to another checking product, do you require entirely new account documentation including all new disclosures? Only a member signature? What do you re-disclose? If the change is a institution initiated change (such as discontinuing a checking product), what type of notification and disclosures are you providing to the member? 

2. Savings to Saving: Same questions as number one. 

3. Savings/Money Market to Checking: If you have a member that wants to change from a savings or money market account to a checking account, do you require entirely new documentation including disclosures? Only a member signature? What do you re-disclose? 

4. Checking to Savings/Money Market: Same questions as number 3. 

Thank you! 

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Deposits and Payments
#2217015 - 07/03/19 07:17 PM Re: Account Type Changes ComplianceJD
Sunshine Lady Offline
Platinum Poster
Sunshine Lady
Joined: Apr 2014
Posts: 590
We have a form that the customer signs to change the type and we also produce a new TISA based on the new product that they have selected.
Define Success on your own terms, achieve it by your own rules, and build a life you are proud of. Anne Sweeney

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#2217064 - 07/05/19 01:13 PM Re: Account Type Changes ComplianceJD
burkemi Offline
Gold Star
Joined: Nov 2013
Posts: 479
If it is a Bank initiated change (due to excessive trans, discontinued product, etc) we make all changes and mail all new disclosures to the customer(s) affected.

If it is a customer requested change, the current account is closed and the new account opened with all new disclosures, signatures... even if it is checking to checking or savings to savings. This is not negotiable.
I reject your reality and replace it with my own.

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#2217087 - 07/05/19 07:38 PM Re: Account Type Changes ComplianceJD
OSB Offline
New Poster
Joined: Nov 2011
Posts: 3
Our process is the same as Sunshine Lady.

New TIS documents given but we also have the customer sign an updated signature card with the new product type.


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