(a) Change in terms notice.
(1) Prior notice
required. A financial institution shall mail or deliver a written
notice to the consumer, at least 21 days before the effective date,
of any change in a term or condition required to be disclosed under
section 1005.7(b) of this part if the change would result in:
(i) Increased
fees for the consumer;
(ii) Increased liability for the consumer;
(iii) Fewer types of available electronic
fund transfers; or
(iv) Stricter limitations on the frequency or dollar amount of transfers.
(2) Prior notice exception. A financial institution
need not give prior notice if an immediate change in terms or conditions
is necessary to maintain or restore the security of an account or
an electronic fund transfer system. If the institution makes such
a change permanent and disclosure would not jeopardize the security
of the account or system, the institution shall notify the consumer
in writing on or with the next regularly scheduled periodic statement
or within 30 days of making the change permanent.
6-5320
(b) Error resolution notice. For accounts
to or from which electronic fund transfers can be made, a financial
institution shall mail or deliver to the consumer, at least once each calendar
year, an error resolution notice substantially similar to the model
form set forth in Appendix A of this part (Model Form A-3). Alternatively,
an institution may include an abbreviated notice substantially similar
to the model form error resolution notice set forth in Appendix A
of this part (Model Form A-3), on or with each periodic statement
required by section 1005.9(b).
