Seniors DDA Violates Reg B

Answered by:

Question:

Most restaurants offer senior discounts now at about age 55 and so we want our Seniors Checking account product to be available at age 55. Our compliance officer said it violated Reg B, but then left the bank. This isn’t a loan product, so what gives?

Answer:

Many checking accounts favoring seniors include a loan interest discount rate. If your product includes that, there is your reason. You can’t discriminate because of age once an applicant for a loan reaches majority, or in some cases is emancipated. There is an exception where favorable terms are allowed at age 62. If you want Senior Checking to start at 55, remove the loan discount.

--------------------------

Learn more about Andy Zavoina’s A-Z of Reg B
webinar.