Pub. 15 2018 Issue 3

20 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G N E W M E X I C O R E A L I Z E D R E A M S The official statement must be used in advertisements for deposit products and services or promotions for non-specific banking products and services offered by the bank. For example, an advertisement that simply states “‘Anytown Bank, offering a full range of banking services.’" or a vehicle wrapped with the bank’s logo and slogan. and the balance required for each tier. 8 However, if it is feasi - ble and practical to do so, it would be best practice to include all trigger term disclosures. Indoor signs are not subject to any of the trigger term disclosures. Indoor signs are signs inside the bank. This includes advertisements displayed on computer screens, ban - ners, posters, and chalk or peg boards but does not include brochures or computer printouts that the consumer may take with them. 9 It can sometimes be challenging to include all of the re - quired disclosures in electronic advertising. Sometimes it is a digital copy of a flyer and the disclosures fit easily. Other times the advertisement may be restricted in its size, such as in a small banner advertisement. In that case, it must contain a hyperlink for additional information directly next to or within a statement regarding a term that requires additional disclo - sures. This is especially true for Trigger Terms. 10 There are also special rules related to bonuses. Regula - tion DD defines a bonus as a “premium, gift, award, or other consideration worth more than $10 (whether in the form of cash, credit, merchandise, or any equivalent) given or offered to a consumer during a year in exchange for opening, main - taining, renewing, or increasing an account balance. The term does not include interest, other consideration worth $10 or less given during a year, the waiver or reduction of a fee, or the absorption of expenses.” 11 However, discount coupons, such as 50% off at a restaurant, are not considered a bonus. Discounts or fee waivers for other products offered by the bank, such as a safety deposit fee, are also not considered a bonus. Further - more, if an item has a value of less than $10, it is also not a bonus under the De Minimis Rule. The rule states that the bank may use the IRS value standards to determine the value of items, but general items that would be considered to be worth less than $10 are t-shirts, coffee mugs, and other small promotional merchandise. 12 The value of items aggregate per calendar. This means that even if the item is not given at the time of the account opening, or is given throughout a calen - dar year and in aggregate those items have more than $10 in value, it is considered a bonus. 13 If a bonus is given, certain disclosures must also be given. The advertisement must also include the annual percentage yield, as well as any requirements to obtain the bonus such as time requirements, minimum balance to obtain the bonus or open the account, and when the bonus will be provided. 14 If overdrafts are mentioned, the advertisement must disclose each overdraft fee, the transaction categories for which a fee would apply, the time the consumer has to pay the overdraft, 15 and when the bank will not pay an overdraft. This includes any mention of an overdraft limit or overdraft limit balance, even if it is mentioned in a periodic statement or in an automated telephone system, or ATM screen. It does not, however, include any transfer services, such as transferring funds from a savings account to the deposit account to avoid the overdraft, even if there is a fee for the transfer service. 16 There are also specific rules for the FDIC logo. Any adver - tising for a FDIC insurance deposit account should include the official FDIC advertising statement or logo. 17 If the lines will be eligible because the logo has been made too small, the lines may be blocked out or dropped, showing just the FDIC symbol. The official statement must be used in advertisements for deposit products and services or promotions for non-spe - cific banking products and services offered by the bank. For example, an advertisement that simply states “‘Anytown Bank, offering a full range of banking services.’" or a vehicle wrapped with the bank’s logo and slogan. The official advertisement state or logo are not required in many scenarios. The bank is not required to use the FDIC statement or logo on statements or reports of condition that must be published according to state or federal law. It need not be used on “stationary (except when used for circular let - ters), envelopes, deposit slips, checks, drafts, signature cards, deposit passbooks, certificates of deposit, etc.” Signs or plates in or on the bank offices need not have the statement or logo. It does not have to be included when the bank name is listed in a directory, when an advertisement does not state the bank name or show the bank logo, or when the bank participates in a join advertisement with a non insured bank. Radio or tele - vision advertisements shorter than 30 seconds need not use the logo or statement. It also does not need to be included on promotional materials such as calendars, pens, and keychains, as it would be impractical. n Deposit Advertising continued from page 19