Periodic Statements on Passbook Accounts with EFTs

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Question:

Currently we generate periodic (monthly) statement on any passbook account that has had an EFT credit (debits are not allowed) during the month. Is this necessary? Secondly, do we need to send an annual error resolution notice to those passbook account holders who have not had any EFTs to the account during the year?I am confused by the language in 205.8(b) which states "any account to or from".

Answer:

If the EFT credits are all preauthorized (recurring), and no other EFTs can post to the passbook accounts, you need not provide a monthly statement. You only need to be able to provide updates to the passbook on request or provide a list of dates and amounts of the transfers. (Reference Section 205.9(c)(1)(i)).

The annual error resolution notice is required to be mailed or delivered to consumers holding any account to or from which EFTs can be made. So, yes, these passbook account customers should get an annual notice.

First published on BankersOnline.com 06/21/04