We recommend that your bank institute a process to check whether consumer loan applicants are eligible for this benefit, rather than placing the burden on the customer to alert your bank about the benefit at the time of loan application.

We believe that a failure to provide a stated benefit of the rewards checking account could be viewed as a violation of the prohibition against unfair, deceptive or abusive acts or practices (UDAAP). Additionally, your customers may not always be aware that they have met all of the prerequisites to be eligible for this benefit, underlining the need for your bank to take an active role in ensuring that all eligible customers receive the benefit.

For resources related to our guidance, please see:

• Consumer Financial Protection Act of 2010, 12 USC 5536(a) (“It shall be unlawful for (1) any covered person or service provider . . . (B) to engage in any unfair, deceptive, or abusive act or practice.”)