My bank is in the process of developing a new service for deposit customers that enroll in the program. When customer's enroll, they will sign an agreement that discloses the fees directly related to this new service.

My bank uses an all-encompassing fee schedule that is provided at account opening. I feel that we need to disclose the fees for this new service on that fee schedule even though the agreement already discloses the fee. My thought is that the fee is directly related to a deposit account and our practice has always been to disclose similar types of fees on the fee schedule.

Would including this new service's fees on the overall fee schedule necessitate an Advance Notice per 1030.5(a)(1) or 1005.8(a)(1) to all customers?

Any customer that enrolls in this new service would obviously receive the agreement and the updated fee schedule, but are we required to notify all deposit customers even if they aren't enrolled in the service?

This does not requirie advance notice becuase a customer has to enroll in the service prior to being charged.

Agreed. You would need to provide advance notice if you were adding or increasing a fee for a service a consumer already has, but not for a service the consumer doesn't subscribe to.

It's often the case that when a bank increases a fee on XYZ service, it broadcasts the advance notice to its full consumer customer base with the account type associated with the service. For example, an increase in the bank's charge for use of a non-proprietary ATM would need to be sent to anyone with the bank's ATM or debit card, but the bank may feel it's easier just to use a statement message on all consumer checking and savings accounts.

Thank you for your responses! That makes perfect sense.

It seemed odd that advance notice would be necessary when there is no way a customer would be suddenly subjected to these new fees. They would be well aware of them given that they would need to sign an agreement, which discloses the fees, before ever being charged the fees.

I just wanted to double-check and make sure I wasn't off my rocker.