Mortgage letters to current customers

Are letters to current mortgage customers - telling them of a new product or comparing current products with their product trigger advertising rules?

"telling them of a new product or comparing current products "

Sounds like the definition of advertising to me.

ok, - that's what i was thinking but the mortgage dept is arguing that it's not because they put a statement at the bottom of the letter that states: this letter is for information purposes only and is not an advertisement to extend customer credit as defined by Section 226.2 Regulation Z.

I don't agree that the statement exempts them from the advertising rules.

Walks like a duck, quakes like a duck. Just because you hang a sign around it's neck that says "I'm a cow" does not make it so.


If this is not a advertisement, ask them why are they sending it. It is not a required regulatory disclosure. Have the information from the Reg Z commentary below when you ask them.



Section 226.2—Definitions and Rules of Construction

2(a)(2) Advertisement .

1. Coverage . Only commercial messages that promote consumer credit transactions requiring disclosures are advertisements. Messages inviting, offering, or otherwise announcing generally to prospective customers the availability of credit transactions, whether in visual, oral, or print media, are covered by Regulation Z (12 CFR part 226).

i. Examples include:

D. Direct mail literature or other printed material on any exterior or interior sign.

H. Letters sent to customers or potential customers as part of an organized solicitation of business.

Great, thank you so much for taking the time to provide this....a great help...and much appreciated.

I love the "we said its so" arguement. I get it all the time.
That's not a referall fee because we say its not...That's a QWR because I say it is...As Carey says it doesn't change what it really is. I've decided to laugh everytime I hear this so I won't have to cry.