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Debit Card Mailing - Age 70 & Over Excluded

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The bank is thinking about conducting a mass mailing of debit cards to all customers who do not currently have a card. I understand that this may be done so long as we follow Section 205.5 of Reg E. The question is, can we exclude customers age 70 and over from the mailing? All of our accounts have overdraft coverage. I am concerned that due to that fact, the regulators might construe the coverage to be incidental credit, which could potentially mean an age discrimination issue per ECOA. I know that the bank can offer a product that benefits persons over age 62. Do you think excluding those over 70 (or 62) would be a benefit or a detriment? Do you think we can exclude the customers over age 70? Do you think we could use Regulation B's definition of "open-end credit" to get around the "incidental credit" issue?

I guess I have a hard time in linking the issuance of a debit card with your overdraft protection product. They are two separate products. The debit card has no impact on whether or not the overdraft potection program would be considered "incidental credit". Overdraft protection programs that are not covered by TILA would generally qualify as incidental credit under Regulation B.

First published on 1/26/09

First published on 01/26/2009

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