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#133523 - 11/24/03 02:12 PM Subsequent Change?
Connie Ollis Offline
Member
Connie Ollis
Joined: Nov 2001
Posts: 83
Western NC, US
My bank had a promotional 7 month CD offering a few months ago and this product was set as single maturity. Mgmt now wants to make the CDs automatically renewable. Can this be a subsequent change under TISA with a 30-day notification? I would think single maturity vs. auto renewable is a preference and couldn't necessarily be considered "to the customer's benefit". Any suggestions?!?

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#133524 - 11/24/03 02:27 PM Re: Subsequent Change?
Pale Rider Offline
10K Club
Pale Rider
Joined: Aug 2002
Posts: 34,318
under the Lone Star
Sounds like the old asset-liability committee is getting a little greedy. The 7 month CD probably carried a high rate of interest and if it will renew into a significantly lower interest rate, you will have some dissatisfied customers on your hands looking for the address of your regulator. Each customer should be given a notice prior to renewal of the change.
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