Would we be covered on the disclosure requirement to exisiting customers by doing a mass mailing of the disclosures to consumers by October 28th?
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And then give disclosure to new customers as they open account

It's my understanding that customer notification to existing customers has to occur by the first statement cycle after Oct 28.

So if we did a mass mailing October 28th, we would be covered on all existing customers? but if we did a mass mailing before October 28th, it would not satisfy the requirement to send the disclosure for after October 28th..........

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Let's take the requirements step by step.

1. Only consumer customers are entitled to the notice.
2. Even consumer customers are only entitled to the notice if they receive their paper checks back in their statements.
3. On consumer customers to whom you intend to keep returning paper checks (and/or substitute checks, whichever there might be for any particular item) back following the effective date of Check 21, you must provide the Check 21 "consumer awareness" notice.
4. The LATEST time you could provide that notice to the existing customers who are entitled to it is no later than the first statement cycle following the effective date of the Act (10/28/04).
5. You could provide the notice well ahead of that ultimate deadline, if you choose to do so, but until the model notice is adopted in final form by the FRB, you can't take advantage of the safe harbor from liability that you will have if you wait and use the final model notice.

That's very clear MB, thanks. One last question - what about image customers (which are the majority) that will ned up getting images of an IRD? No notice required, correct?

Mary Beth, are we under any obligation to send anything other than the disclosure? What I am referring to is whether or not we MUST send information explaining check 21 other than the required disclosure.

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if we provide the disclosure to all consumers initially, will we need to provide the notice each time a requested copy is a substitute check?

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No. The regulation (229.57(b)(2)) says you must provide it with a returned substitute check unless you have already provided the disclosure.