This question was originally posted in our Compliance Master Group forum by wp27.
Our marketing officer would like to put an ad (for lack of a better word) on a benefits card for our Chamber of Commerce (all Chamber members get the card and it offers deals from local businesses). There is a local bank in town that currently has one on there that offers a gift card at account opening but has none of the required disclosures on it. Our marketing officer wants to do the same thing but I don’t see how we can do this without the proper disclosures which would be too much and wouldn’t fit in the tiny space allowed on the card. Is there some exemption I’m missing for ads of this sort? Another bank is offering free checks at account opening, wouldn’t this also trigger disclosures as a bonus?
I’m assuming the gift card the other bank is giving away is less than $10 which doesn’t qualify as a bonus and therefore doesn’t trigger the bonus disclosures. Same goes for the free box of check which would be an absorption of an expense.
From Reg DD 1030.2(f) Bonus means 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, maintaining, 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.
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