(a) Solicited issuance. Except as provided in paragraph (b) of this
section, a financial institution may issue an access device to a consumer
only:
(1) In response to an
oral or written request for the device; or
(2) As a renewal of, or in substitution
for, an accepted access device whether issued by the institution or
a successor.
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(b) Unsolicited
issuance. A financial institution may distribute an access device
to a consumer on an unsolicited basis if the access device is:
(1) Not validated, meaning
that the institution has not yet performed all the procedures that
would enable a consumer to initiate an electronic fund transfer using
the access device;
(2)
Accompanied by a clear explanation that the access device is not validated
and how the consumer may dispose of it if validation is not desired;
(3) Accompanied by the
disclosures required by section 1005.7, of the consumer’s rights and
liabilities that will apply if the access device is validated; and
(4) Validated only in
response to the consumer’s oral or written request for validation,
after the institution has verified the consumer’s identity by a reasonable
means.
