BANK PRODUCT OR ACTIVITY
FORMAT
(MEDIA)
REGULATORY TRIGGER
SYNOPSIS OF REGULATION
REGULATORY CITATION
Loans on or Secured by Dwellings
All
Ad regarding loans to purchase, construct, improve, repair, or maintain a dwelling or loan secured by a dwelling.
Appropriately indicate that bank makes loans regardless of race, color, religion, national origin, sex, handicap, or familial status. Use of Equal Housing Lender logo and legend or use of Equal Housing Lender phrase in oral ad satisfies compliance. No other words, symbols, models, or other communication may express, imply or suggest discriminatory preference or exclusionary policy in violation of the Fair Housing Act or the ECOA.
Fair Housing Act, HUD Regulation,
12 C.F.R. §§ 338.1-4
Consumer Credit
Ad states specific credit terms for Reg. Z covered credit.
When ad for credit states specific credit terms, only terms actually arranged or offered may be stated.
Truth-in Lending Act, FRB Reg. Z,
12 C.F.R. § 226.16(a)
Consumer credit ad containing any term required by Reg. Z to be disclosed under § 226.6 (finance charges, other charges, security interests, statement of billing rights, home equity plan information).
If consumer credit ad contains required disclosure terms, it must state: any minimum, fixed, transaction, activity or similar charge that could be imposed; any periodic rate that may be applied expressed an APR -- if plan provides for variable periodic rate, it must be disclosed; and any membership or participation fee that could be imposed.
12 C.F.R. § 226.16(b)
Catalog or multi-page
Consumer credit ad in catalog or multiple page format
Rules determine whether such ad is a single ad, thus eliminating the necessity for complete disclosure on each page. Generally, credit terms must be disclosed in a table or schedule with reference to page(s) carrying the table or schedule.
12 C.F.R. § 226.16(c)(1) and (2)
Home Equity Plans
Home Equity Plan (HEP) ad covered by Reg. Z, § 226.5(b) where any terms requiring disclosure under § 226.6(a) or (b) (information on finance charge or other charges) or payment terms of HEP are set forth.
Disclosure of any loan fee that is a percentage of the credit limit under the HEP and estimate on other fees imposed for opening the plan (stated as single dollar amount or reasonable range); any periodic rate used to compute finance charge, expressed as APR; maximum APR that may be imposed in a variable-rate plan.
12 C.F.R. § 226.16(d)
Consumer HEP stating an initial APR not based on index & margin used to later adjust rate in variable-rate plan.
Disclosure of time period rate is effective, and with equal prominence, a reasonably current APR that would have been effective using index and margin.
12 C.F.R. § 226.16(d)(2)
HEP ad with statement regarding minimum periodic payment.
Disclosure, if applicable, that balloon payment may result.
12 C.F.R. § 226.16(d)(3)
Consumer HEP ad that states interest expense incurred is or may be tax deductible.
Ad may not be misleading about tax implications.
Truth-in Lending Act, FRB Reg. Z, 12 C.F.R. § 226.16(d)(4)
Deposit Accounts
Using term “free” or “no Cost”.
Terms prohibited from use if maintenance or activity fee may be imposed.
Truth-in Savings Act, FRB Reg. DD, 12 C.F.R. § 230.8(a)
Using term “profit”.
Terms prohibited from use if referring to interest paid on account.
Truth-in Savings Act,
FRB Reg. DD, 12 C.F.R. § 230.8(a)
All but broadcast media
Ad regarding time accounts.
Interest penalty may be imposed for early withdrawal statement.
Truth-in Savings Act, FRB Reg. DD, 12 C.F.R. § 230.8(c)(6)(ii)
All but broadcast or outdoor media, telephone response machines or bank lobby boards
Ad regarding deposit accounts offered to consumers that states a rate.
Rate stated as an APY and no other rate but the interest rate. Interest rate may not be more conspicuous than APY and must include following information when applicable: statement that rate may change after account opened if account is variable rate account; time period APY offered or statement that APY is accurate as of a specific date; minimum balance required to obtain APY; minimum deposit required to open account if greater than the minimum balance necessary to obtain APY; statement that fees could reduce account earnings.
FRB Reg. DD,
12 C.F.R. § 230.8(b)
Rate stated as an APY, including following information: minimum balance required to obtain APY; minimum balance required for each tier of tier-rate accounts; term of any time account; when term “bonus” is stated, the APY, time requirement to obtain bonus or minimum balance required to obtain bonus.
12 C.F.R. § 230.8(e)
Statement of the terms of the account.
Truth-in Savings Act, FRB Reg. DD, 12 C.F.R. § 230.8(c)(6)(i)
Using term “bonus”.
When “bonus” is used in ad, it must state the Annual Percentage Yield (APY); the time requirement to obtain bonus; any minimum balance to open initial account; or minimum balance that must be maintained to obtain bonus.
12 C.F.R. § 230.8(d)
Picture of Money
Print media
Displaying picture of money.
In black & white, sized less than 3/4 or more than 1 1/2 in linear dimension in comparison to size of genuine money.
18 U.S.C. §504
Common Trust Funds
Any mention of common trust funds by national bank.
National bank prohibited to advertise or publicize common trust funds, but may issue financial report on common trust funds to prospective customers. Report availability may be given to promote bank fiduciary services.
OCC Regulation,
12 C.F.R. § 9.18(b)(5)
Consumer Leases
Consumer lease promotion (i.e., contract in the form of a bailment or lease for use of personal property by a natural person primarily for consumer purposes, exceeding four months, but not exceeding a total obligation of $54,600).
Ad must reflect amounts or terms lessor usually and customarily offers. Ad stating payment amount, payment number, or any or no payment required at consummation, must disclose: it is a lease transaction; total payment amount required at consummation or no payment amount; number, amounts, due dates or periods of scheduled payments with total of such payments under lease; amount or method to determine amount of lessee liability at end of term and that lessee is liable for the difference, if any, between estimated value of leased property and realized value at end of lease term, if lessee has such liability.
Consumer Leasing Act,
FRB Reg. M,
12 C.F.R. § 213.5
Lottery
All by national banks
Ad, announcement or publication regarding the existence of a lottery, participant or winner.
National banks may not deal in a lottery or announce, advertise or publicize the existence of a lottery or identify any participant or winner.
12 U.S.C. § 25(a)
All by state member banks
State member banks may not deal in a lottery or announce, advertise or publicize the existence of a lottery or identify any participant or winner.
12 U.S.C. § 339
All by state non-member banks
State nonmember banks may not deal in a lottery or announce, advertise or publicize the existence of a lottery or identify any participant or winner.
12 U.S.C. § 1829(a)
Any Product or Activity
All, unless excluded by regulation
(e.g., bank supplies, radio/television ads less than 30 seconds)
Any ad, regardless of content, placed by insured bank.
FDIC official advertising statement must be a part of all bank ads, unless exempted by 12 C.F.R. § 328.3(c). An example of such statement is “Member of the Federal Deposit Insurance Corporation.”
FDIC Regulation,
12 C.F.R. § 328.3
Retail Sales of Nondeposit Investment Products
Bank employees make recommendations or sell such products to retail customers; affiliated or unaffiliated 3rd party employees make recommendations or sell such products on bank’s premises; such product sales result from referral of retail customers by the bank to a 3rd party and bank receives direct benefit from referral; or bank trust department directs retail customers where they may purchase such products by completing a customer agreement.
Minimum disclosures must state that such products: are not insured by FDIC; are not deposits or other obligations of the bank nor guaranteed by the bank; and are subject to investment risks, including possible loss of principal invested.
Interagency Statement on Retail Sales of Nondeposit Investment Products, February, 1994