Reg E Change in Terms-Grandfather Clause?

Is there a grandfather clause to new Reg E laws? Our bank has disclosed ECK since at least 2003, but they just added the following in 2006:

§ 205.7 Initial disclosures.
...
(c) Addition of electronic fund transfer services. If an electronic fund transfer service is added to a consumer's account and is subject to terms and conditions different from those described in the initial disclosures, disclosures for the new service are required.

Obviously, an account that has been open for 20 years did not receive an initial disclosure about ECK, so given this new text do we have to disclose it to them now?

Yes, you should. There is important information on liability and error resolution involving ECKs in the model disclosure language. You should be able to craft a simple folder with all the needed info and use it as a statement stuffer.

For the last two years we have included an EFT disclosure on the bottom of our Privacy Policy annual mailing. Is this sufficient? Also, do we need a separate EFT policy (and procedures) that is approved by the board annually?

I could not possibly comment on the sufficiency of your EFT disclosure without seeing the disclosure and knowing the EFT services your bank offers.

There is no requirement of which I am aware for an "EFT Policy."

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For the last two years we have included an EFT disclosure on the bottom of our Privacy Policy annual mailing. Is this sufficient? Also, do we need a separate EFT policy (and procedures) that is approved by the board annually?

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As to disclosing the annual error resolution notice, yes, this could be with your annual Privacy mailing, if that is what you mean. As John noted, the sufficiency of the disclosure can't be commented on though.

There is no required policy. If you have one, great. Should it be separated from the policy, Yes. The board should approve your policy, but not the procedures. If this "separation" is necessary for that, do so. I had policies numbered, CP-100, and procedures tagged with a suffix, CP-100a.