Let's blow that fog away ...
One of the basic tenets of disclosure rules is that, when a consumer is being asked to make a decision based on information in a disclosure, that disclosure should be provided "in close proximity in time" prior to the decision. And one of the basic requirements involved in the Reg E opt-in to OD services for ATM and one-time debit card transactions is that the consumer should not be asked to opt in to a service the consumer won't be receiving.
If the consumer doesn't obtain or request an ATM card or debit card and a card won't be issued in connection with the opening of the consumer's deposit account, you can provide the section 1005.17 disclosure as an informational piece, but if the consumer later decides to request an ATM card or debit card, the bank should start the section 1005.17 process of disclosure, provision of an opt-in method, receipt of the opt-in, and confirmation of the opt-in from step one, as if the consumer had not received the disclosure earlier.
Contrast that with a situation in which a bank delays a decision on providing OD services for ATM and one-time debit card transactions for a 30- or 60-day period, but the consumer requests the service at the time the account is opened and an ATM card or debit card is issued right after account opening (without the OD service until bank determines it will be provided).
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8