May an account be advertised as "free" if there is a $5 per month charge for paper statements, but e-statements may be obtained free of charge? Still looking for opinions from my peers on this one.

Thanks!

I am not well versed on this, but a question I have is: are e-statements the option, or are paper statements the option?

I would guess that a free account with e-statements, and they can opt at their choosing to get paper statements for a fee is ok.

I would assume a free account with a $5 fee for paper statements, but they could opt for free e-statements might be a problem.

California law may have something to say about whether you can advertise an account as free with a charge for paper statements, but I think that Regulation DD would permit it, PROVIDED that the account is packaged to include e-statements as the norm.

If the account routinely will not charge customers a fee for statements (because they are electronically delivered), and only charges if the customer opts to receive a paper statement in addition to or in lieu of the e-statement, I don't believe you would violate the Truth in savings rule.

I do suggest, however, that your ad clearly state that the account comes with e-statements, and there is a fee for the paper statement option.

Thank you for your help!

To follow up on John's comments (especially checking California law), don't stop your analysis with whether your intended advertisement satisfies Regulation DD.

Remember, our state has Business & Professions Code Section 17200 which deals with unfair business practices. The law permits someone to sue over something that is "unfair" even though it might be legal. So an ad that complies with a federal regulation can still be considered "unfair" if it is later determined that you didn't adequately disclose all pertinent conditions.

It would be best if you ran your intended ad by your bank (our outside) counsel to make sure you don't run afoul of B/P 17200.