We are considering adding two features to a checking account that has no monthly fee or service charge. Until now, we have been able to advertise the checking account as free since there is no monthly maintenance fee or service charge, or minimum balance to avoid a fee. We are considering adding the requirement of receiving statements electronically only on this account and if the account holder wants a paper statement, the fee would be $2.00 per statement. The statements are produced monthly unless the account is dormant which would be quarterly for dormant accounts. Would this fee be considered "any maintenance or activity fee" for the purpose of Reg DD 1030.8(a)(2)? Would we still be able to advertise the account as free?

I don't think so. The statement is a legally required feature for a checking account if that account can have EFT activity (every checking account has that capability due to the potential for ACH check conversions). I would put a statement fee in the category of a maintenance fee.

What you could do is have two identical account types -- one with e-statements (E-SIGN compliant, of course) and no fee and the other with paper statements and a fee. You could advertise the former as a free account, but not the latter.

Frankly, I don't think you get much mileage out of advertising an account as free any more.

One of my clients continued to advertise their account as free and received a severity 2 finding and their exam report and had a look back to refund all statement fees. As John said, this is in the category of a maintenance fee and you cannot advertise the account as free.

Since we are required to provide a statement, can we charge a customer (who still chooses paper) to mail them the paper copy?

We do have an e-account that requires e-statement opt-in…

Now Mgmt wants to start charging all account holders a statement fee if they don’t opt in to e-statements….

Have management read:

https://www.consumerfinance.gov/abo...to-save-americans-billions-in-junk-fees/

And then read this: https://www.consumerfinance.gov/abo...fair-discrimination-in-consumer-finance/

Then ask them - how wise do you think it is to directly charge a customer for something that you are legally obligated to provide them.

Thanks for the ammo (I mean resources), Randy

This didn't set too well with me when I was asked about it.....

We converted last year. We changed the name of the checking to "everyday checking" and provided a LOT of notices to everyone who had a free account. We have alternative accounts that don't have statement fees so some people converted. Others decided they were ok with paying the fee, many others went to electronic statements. We had an FDIC audit earlier this year and we provided all the supporting documentation. They had no issues.

I think you mean that they had no issue this year. Next year might be a totally different story.

In today's environment, with a number of banks and credit unions cutting back on deposit account fee income (admittedly involving overdraft fees) and a public CFPB declaration of war on "junk fees," I wouldn't want to be the bank adding new fees to accounts.

Well, if I could remove my previous comment I would (guess I need a bit more practice with the system.) Instead, I'll request that y'all just ignore it!