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#2228121 - 12/31/19 06:57 PM change in terms
happyauditor Offline
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happyauditor
Joined: Nov 2004
Posts: 802
NY
If a bank is reducing the amount of refund/rebate of any non-bank owned ATM fees (fee charged to the customer by other bank for using the other bank ATM), is this a change in terms under Reg E or Reg DD? I am thinking Reg DD as this is a feature/benefit of the account and not a fee we charge for using the other Bank's ATM, but a fee they charge. However I want to be sure as the timing of the change in terms is different for reg DD (30 days) vs reg E (21 days).
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eBanking / Technology
#2228125 - 12/31/19 07:18 PM Re: change in terms [Re: happyauditor]
burke116 Offline
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Joined: Jun 2014
Posts: 514
RVA
I would argue neither because a refund isn't disclosed under either regulation (only fees) even though you may include a description of the refund on your TISA disclosure. I would look rather to your terms and conditions/deposit contract which will usually include a blanket statement of alerting the customer of any adverse changes x-number of days prior to the change.

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#2228144 - 01/02/20 04:21 PM Re: change in terms [Re: happyauditor]
happyauditor Offline
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happyauditor
Joined: Nov 2004
Posts: 802
NY
Thanks Burke...I hear you...the "refund" was not required to be disclosed under either DD or E...but if the feature/benefit WAS included in the TISA disclosure, wouldn't any change removing the benefit then fall under a change in terms under TISA?
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#2228162 - 01/02/20 06:15 PM Re: change in terms [Re: happyauditor]
burke116 Offline
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Joined: Jun 2014
Posts: 514
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(a) Change in terms. (1) Advance notice required. A depository institution shall give advance notice to affected consumers of any change in a term required to be disclosed under Sec. 1030.4(b) of this part if the change may reduce the annual percentage yield or adversely affect the consumer.

I'm relying on my interpretation of .5(a)(1) to say that a refund is not a required disclosure under 1030.4(b), even though like I said, it may appear on your TISA disclosure. The conservative approach would be to send something out 30 days, but I don't think it's required. Again, deposit contract probably have some blanket language (for example, ours says 30 days for any adverse changes). And from a customer service perspective, earlier notice is probably best.

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