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#628263 - 10/24/06 01:26 PM New Product - New Compliance Manager needs help
Tryin-2-Comply Offline
100 Club
Joined: Apr 2003
Posts: 202
Hills of TN
I am a new compliance officer with deposits and advertising being my weakest area. I have a couple of questions related to a new product. Can a bank require that a NOW account is opened based on certain stipulations, such as, email address is a requirement, must accept only e-statements, and must meet a certain number of debit card transactions in order to receive interest? In REG DD; I understand that the customer must consent to receiving statemenets electronically; however, E-Compliance states that the customer must have the option to opt-out at any time, along with other requirements. I'm going head to head with our marketing director who has done nothing but give me a hard time from day one. Marketing is telling me that they know the REGs and that they can offer a product under the terms that a valid email address must always be on file and that the customer must agree to only recieving e-statements for this product.

PLEASE PROVIDE ANY ASSISTANCE YOU CAN!!!!! IT IS GREATLY APPRECIATED.

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#628264 - 10/24/06 01:40 PM Re: New Product - New Compliance Manager needs help
Skittles Online
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Skittles
Joined: Sep 2002
Posts: 13,965
TN
I feel your pain with the Marketing Director. That is often an issue when advertisement meets compliance.

I'm sure you will get expert opinions regarding your plight, but here is my 2 cents worth. I would think this would be acceptable as long as the customer could opt out of receiving e-statements and be put in another similar product with the same (or better) benefits.
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#628265 - 10/24/06 01:43 PM Re: New Product - New Compliance Manager needs help
Tryin-2-Comply Offline
100 Club
Joined: Apr 2003
Posts: 202
Hills of TN
Thanks for your response, I appreciate your 2 cents worth. However, marketing does not want to provide them the option to opt-out and wants to make the e-statements and email address a requirement to open the account....that seems contradictory with what the reg says we must do.

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#628266 - 10/24/06 03:06 PM Re: New Product - New Compliance Manager needs help
straw Offline
Power Poster
straw
Joined: Nov 2002
Posts: 9,121
A statement must be delivered to the customer. You can require e-statement as part of the account, but if you have a bad e-mail address, you must have an alternative process to deliver the statement.

You could also reclass the account into another type of account where e-statements are not required, so long as you make that part of your initial disclosures.

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#628267 - 10/24/06 06:49 PM Re: New Product - New Compliance Manager needs help
Tryin-2-Comply Offline
100 Club
Joined: Apr 2003
Posts: 202
Hills of TN
Ok, so i fully understand. We can offer this product, however, in our intial disclosure we must include that if at any time they opt-out of receiving the e-statments or provide us with an invalid email address, we can convert their account to something else. Is that correct?

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#628268 - 10/24/06 07:04 PM Re: New Product - New Compliance Manager needs help
straw Offline
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straw
Joined: Nov 2002
Posts: 9,121
Yes, so long as the something else is similar to what they had.

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#628269 - 10/24/06 09:08 PM Re: New Product - New Compliance Manager needs help
Tryin-2-Comply Offline
100 Club
Joined: Apr 2003
Posts: 202
Hills of TN
Thank you so much. I appreciate everyone's help.

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