Are there risks in over-disclosing on new accounts?

Answered by:

Question:

It is easier to provide all disclosures to all customers than to train my new accounts CSRs to give some, but not others, based on the account product. What do you think of this?

Answer:

In many cases that wasn’t a bad philosophy in the past. But it depends on your products and brochures. We do not encourage, for example, providing Reg E or Reg DD disclosures to a business account, even for a sole proprietorship or single-member LLC. Those regulations protect only consumers, and it may be confusing or even deceptive to give businesses descriptions of protections they are not getting.
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