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#2300550 - 08/14/24 07:34 PM Is this statement in an ad concerning?
LostinRegLand Offline
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Joined: Jun 2014
Posts: 126
WA
I would like input on if I am being to risk adverse with our marketing.

In one of the ads marketing would like to run they include the statement "Lower Fees"

I have asked them if any data exists to substantiate that statement when compared to other banks in our market areas. I have been told no it does not need to be substantiated that it is an opinion that we have lower fees.

UDAAP and deceptive marketing practices come to my mind if we were to state lower fees but then someone opens up an account and discovers our fees are no lower or potentially higher than their prior institutions. I may be being overly risk adverse though so I would like other thoughts on this.

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#2300554 - 08/14/24 08:01 PM Re: Is this statement in an ad concerning? LostinRegLand
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 85,044
Galveston, TX
While you are not quoting specific competitor prices, the fact that you are claiming without any proof that your fees are actually lower is most likely a deceptive practice and it is not a risk that I would take. I would refer them to this, as it well may be a violation of the FTC's Section 5.

https://www.law.cornell.edu/cfr/text/16/233.2
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#2300561 - 08/14/24 10:00 PM Re: Is this statement in an ad concerning? LostinRegLand
LostinRegLand Offline
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Joined: Jun 2014
Posts: 126
WA
Thank you for the link! Very helpful.

I was able to get them onboard to substantiate our claim after more conversations. They will be doing a fee survey to identify if we in fact have lower fees and to have data to support that claim.

I also gave them options of ways to still tout that we have low fees without making the claim of lower fees.

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#2300562 - 08/14/24 10:00 PM Re: Is this statement in an ad concerning? LostinRegLand
TMatt87 Offline
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TMatt87
Joined: May 2011
Posts: 2,019
Idaho
When we run ads for certain products that are likely to have lower fees than normal (i.e. VA loans), we always include softening language, like "often have lower fees than conventional loans."

You might be able to parse out fee information on mortgage loans from HMDA data, but aside from that, you're flying blind. And anyone who says "lower fees" is an opinion should probably be a politician crazy
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#2300564 - 08/14/24 10:52 PM Re: Is this statement in an ad concerning? TMatt87
LostinRegLand Offline
100 Club
Joined: Jun 2014
Posts: 126
WA
Thank you for the laugh. Our marketing director came from a much different industry where they didn't have to worry as much about risk. He is always will to learn though so that makes it easier to work together.

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#2300601 - 08/15/24 07:30 PM Re: Is this statement in an ad concerning? LostinRegLand
TryingtoComply Offline
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Joined: Apr 2013
Posts: 2,294
The West
Banks change their pricing all the time. The survey will have data as of a point in time. Not so sure I would rely on that unless you also disclose that it was based on a survey at that point in time.
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