Would like some UDAAP feedback on setting creative foreign ATM rebates:
- could a bank set up foreign ATM rebates driven by internal analytics (i.e. customer lifetime value, attrition, etc.) so that desired customer segments would get a higher rebate. For instance, a customer at risk if attrition would be given 4 rebates/month vs one non-at risk who may receive 2 rebates/month.
- could ATM rebates be considered discretionary and therefore driven by internal metrics that do not have to be disclosed to the customer?
- are there specific state rules that would challenge the disclosure of such type of ATM rebate framework?

You must have programming staff with way too much time on their hands. You really think the waiver of foreign ATM fees is a key to attrition?? If so, then knock yourself out. If you do this, I agree, just do it and don't try to disclose it. Of course, then you can't advertise it either. It sort of defeats the purpose.

We have specific products that include the waiver of 4 ATM fees per statement cycle. We use this feature to market the products but do not list this feature in our Truth-in-Savings disclosure. Is an account benefit required to be included in our Reg. DD disclsoures?

Fees for the use of an ATM would be Regulation E disclosures. This particular fee is disclosed under section 1005.7(b)(5). There is no requirement that you disclose that you waive the fee.

On the other hand, why would you waive a fee unless you can use the waiver as a reason for someone to open or keep an account with you? If you don't include the waiver in your disclosure, I have to assume you tell customers and prospective customers about the waiver. Otherwise, why leave the money on the table?

So if we are developing a new account and all fees that we would charge for our customer using a Foreign ATM will be waived and one (1) fee charged by the owner of the Foreign ATM will be waived per statement cycle, what would be your suggested wording to list on the Reg E initial disclosure in order to make this clear to the customer?