A minimum balance fee is a "maintenance or activity fee" that cannot be charged if the account is advertised as free.
1030.8 of Regulation DD says this:
(a) Misleading or inaccurate advertisements. An advertisement shall not:
(2) Refer to or describe an account as “free†or “no cost†(or contain a similar term) if any maintenance or activity fee may be imposed on the account. The word “profit†shall not be used in referring to interest paid on an account.
And the commentary explains that minimum balance requirements are considered maintenance or activity fees:
3. Fees affecting “free†accounts. For purposes of determining whether an account can be advertised as “free†or “no cost,†maintenance and activity fees include....i. Any fee imposed when a minimum balance requirement is not met, or when consumers exceed a specified number of transactions.
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Adam Witmer, CRCM
All statements are my opinion, not those of my employer, and should not be taken as legal advice.
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