Posted By: HR Banker
Reg. E and new product - 03/22/13 06:39 PM
Are we correct in that we have to give a new Reg. E disclosure when an existing customer gets a new "access device"? Does this include mobile banking? Is it required to be the same as an initial disclosure or is it just the error resolution portion?
Posted By: rlcarey
Re: Reg. E and new product - 03/24/13 12:43 PM
It depends. Were all the mobile banking characteristics that are required to be disclosed contained in the initial Regulation E disclosure already provided to them? If so then you should go by this commentary in 1005.7(a) and determine how you define "close proximity":
"On the other hand, if an agreement for EFT services to be provided by an account- holding institution is directly between the consumer and the account-holding institution, disclosures must be given in close proximity to the event requiring disclosure, for example, when the consumer contracts for a new service. "
Posted By: TruthNTime
Re: Reg. E and new product - 04/08/13 09:08 PM
I am resurrecting this post, as I have an add on question that is similar to the OP. If we are reissuing a members debit card in place of a card near expiration, do we need to mail a Reg E Notice as well? What about lost or stolen cards, or damaged cards; do we need to provide the notice when we replace those also? The language speaks about providing the notice when there is a new SERVICE requested, but not about ACCESS DEVICES. For reference, the close proximity clause would not apply in these scenarios.
Posted By: rlcarey
Re: Reg. E and new product - 04/08/13 09:28 PM
Not unless you were changing your terms:
Paragraph 5(a)(2)
1. One-for-one rule. In issuing a renewal or substitute access device, only one renewal or substitute device may replace a previously issued device. For example, only one new card and PIN may replace a card and PIN previously issued. A financial institution may provide additional devices at the time it issues the renewal or substitute access device, however, provided the institution complies with Sec. 1005.5(b). See comment 5(b)-5. If the replacement device or the additional device permits either fewer or additional types of electronic fund transfer services, a change-in-terms notice or new disclosures are required.
