Preparation and determination pay off for Citizens State Bank
Customer A has a $300,000 line of credit with a $200,000 balance that is secured by $300,000 in bank CDs. The bank is closed by FDIC. How does the FDIC consider the CDs securing a loan when figuring out insurance payouts? In this case, would the FDIC use the CDs to pay off the loan and pay the customer $50,000 in proceeds, or would they pay out $100,000 (net of CDs after the loan was paid off)?
About Regulation E, 205.17(b)(3) Same Account Terms, Conditions, and Features: I thought about actually closing the card if the customer does not opt-in or closing the card if he had not opted-in, and have overdrawn the account for the second time. We won’t charge them those two times, but after the second one hits, we will shut the card off and will need them to opt-in. I feel that if we do not promote our debit cards with any account, but the customer has the option to add a debit card to a checking account, that we should be able to only give debit cards to customers that have opted-in. The regulation states that the “institution may not vary the terms, conditions, or features of an account provided to a consumer who does not affirmatively consent to the payment of ATM or one-time debit card transactions.” I do not think that the ATM or debit card is a term, condition, or feature of any of our accounts that we offer. It is a benefit that the customer may receive if he opens a checking account with us, but there is no obligation to any of our accounts that a ATM or debit card has to be acquired. It also states that we cannot offer consumers a PIN-only card if they do not opt-in. It is they just cannot get an ATM or debit card added to the account if they do not opt-in, do you think that this would be a violation or do you have any suggestions on how we could go about this?
We recently acquired two banks from the FDIC. One of them has e-statements, as do we. Do they have to agree to our e-statement terms or does the agreement with their current bank still apply?
I am reviewing our compliance due to the recent reminder from FDIC via FIL-66-2009 regarding Disclosures at ATMs. Are we required to post notice on both the outside face of the physical ATM and on the screen? If so, must these notices also disclose the fee amount?
We are an OCC regulated national bank and a beta test bank for mobile banking. Our customers can use their cell phones or PDAs to view account balances, transactions, transfer funds intrabank, and pay bills. Account numbers are not displayed only account nicknames. There is no advertising of products or rates. The only picture displayed is the bank's logo. Do we need to display the FDIC or Equal Housing logo on any or all the pages displayed on the cell phone?
When reviewing our website, what are the main compliance issues we need to look for?
We have had several customers express ardent displeasure with multi-factor authentication and the desire to be "opted out." Our system allows for opt-out but an FDIC examiner has told us that opt-out should never be allowed. I understand that it should be extremely limited, but if a very good customer says "turn it off," why should they not have the choice since it is being put in place for their security - provided they are willing to sign some kind of hold harmless agreement. From a Regulatory compliance standpoint we are meeting our obligations by putting multi-factor generally in place, but is the expectation that no customer ever be given a choice?
Are there best practices for authenticating customers who call the bank to inquire on their accounts?
What must be done if a tape containing loan customer information is lost in transit to the credit bureau? The tape is encrypted and contains minimal sensitive information.