My bank is in the process of building two test accounts and offering them to a very specific market area through our online platform only (i.e. the applicants would have to live in this specific market area and apply online; their address would be verified prior to approval). What I’m most concerned about is:

1. The account name is going to have the word “Free” in it
2. These are test products, and if we don’t get enough applicants within three months, the project sponsor wants to stop offering the account AND is not sure what he wants to retroactively do with all current accounts (i.e. grandfather or convert).

The former doesn’t worry me as much as the latter --- one of the accounts has absolutely no fees. No fees for anything that would stop us from calling it “free” (transactional, monthly, reasonably expect fees) and no fees for anything else (stop payments, wires, garnishments, overdrafts, etc). The other test product doesn’t have any monthly/maintenance/DD defined fees for using “free”, but does have OD, garnishment, and some other fees, albeit at a lower cost than our other standard accounts.

I’m concerned about the “Free for a limited time” piece in the commentary of DD. Since they’re not sure if it’s going to be a limited time or not, I don’t know how this should be disclosed. Is it more of a legal question? I’m going to ask for a specific plan, including actual numbers, for the end of the test period before I bless this particular part of the tests. But what they’ve tentatively told me is that the decision will rest on the numbers – so for example 1000 or more accounts, and the account stays; 1000 or less accounts opened and the accounts will be converted. I personally think that the decision should be made prior to starting this offering; otherwise, it is a bait and switch if the latter happens (right?).
Does anyone have any advice for this situation? And/or, has anyone had experience in test accounts?
Thanks.

I don't think its bait & switch if you properly early notify of an adverse change to the product/ fee schedule before the account changes.

Thanks, AIT. Met with the group and came up with what I think is a pretty solid (tentative) plan: advertise the account itself as "limited time only", meaning we're only offering for a short period of time (either once we get x number of accounts or until a certain date). We'll always disclose the date on which the offer "ends", but if we have reached our account number goal yet, we'll extend the offer. Once the offer period is over, we'll maintain the accounts for at least a year to get data on use of certain services, retention, balances, etc. Of course, we'll send out the required notices prior to changing terms.

I will most likely have other questions as I move forward with this project. I really appreciate the feedback.