Question:  We are about to modify our checking account fee schedule and I know we must give 30 day notice before the change per state law but I can't remember if the notice goes to all account holders or just consumer account holders. Can you help me with this question?

 

Answer:  The notice period is 30 days for both commercial and consumer accounts.

 

As you know, Truth in Savings (Reg DD) applies to consumers only.  The rule on subsequent disclosures for consumers is found at 12 CFR §230.5.  "Consumer" is defined at 230.5(h) as "a natural person who holds an account primarily for personal, family, or household purposes, or to whom such an account is offered. The term does not include a natural person who holds an account for another in a professional capacity."

 

Finance Code § 34.302 sets the notice period for such disclosures at 30 days, but does not distinguish between consumer and commercial accounts.  But because Section 34.302 is preempted with respect to consumers account by 12 CFR §230.5, the Finance Code notice requirement applies only to commercial accounts.