We'd like to include some marketing messages in the series of on-hold messages that can play to customers who call in to our customer information representatives. One of the messages our marketing department would like to include is "Refinance your thirty year home loan with us for fifteen years for tremendous savings." I know we have to include more information in our newspaper ads when we promote our fifteen year terms. Does it have to be included in our on hold messages, too?
We are in the process of developing a Refer-a-Friend program whereby we would pay a "commission" to our customers if they referred new business to us. The regulations state that banks are restricted as to how much they can pay as a bonus for new deposit accounts. However, our program will pay the referrer, and not the new depositor/new loan account owner.Does the same regulation apply to the referrer? The rules are somewhat cloudy. We know we would have to send the referrer a 1099 at year end if payments exceed $600 for the year.
We are in the process of developing a Refer-a-Friend program whereby we would pay a "commission" to our customers if they referred new business to us. The regulations state that banks are restricted as to how much they can pay as a bonus for new deposit accounts. However, our program will pay the referrer, and not the new depositor/new loan account owner.Does the Regulation Q apply to the referrer? The rules are somewhat cloudy. We know we would have to send the referrer a 1099 at year end, if payments exceeded $600 for the year. What other issues do we need to worry about?
Are there any violations to FDIC/federal or SEC rules if the bank interfaces the customer information system with their brokerage firm's system to display investment balances, whereby a non-securities licensed employee can see that information and use that information for cross-sell purposes?
Does the Federal Privacy Act prohibit a bank from verifying funds for another bank if a customer presents a check drawn on a customer's account?
Among credit risk, market risk and operational risk, developing a good operational risk management program seems to be the most challenging. Can't our existing compliance processes (e.g., AML, Red Flags, GLBA, etc.) contribute to operational risk management?
Do the affiliate marketing rules prohibit cross-selling? For example, we have an affiliate insurance company. If the insurance employee is able to access our system to determine what, if any, products her client has with the bank, can the insurance employee cross-sell the bank's products and services to her client without having to go through the opt-out procedures?Another situation, if the insurance company employee does not have access to our system, but generally informs all clients of the bank's products and services and then, if the client requests futher information refers the client to a bank employee. Is this now prohibited without providing an opt-out opportunity?
To what extent is the investment center permitted to obtain customer information from the bank for marketing solicitation purposes?
We are flagging employee accounts so that non-authorized employees are unable to view other employees’ accounts. If an employee is a signer on an account or a joint holder on a non-employee account, should that account be flagged as an employee account? For example, an employee is joint on a sibling or signer on a child’s account.
I work for a small community bank and we are considering offering HSAs. My concern is that administration of these HSAs appear to require knowledge of terms of health insurance policy, terms of customers, whether distributions are qualified medical expenses, etc. I am not aware of any other bank product that requires that we keep track of this customer information. What is the extent of our obligation in this area?