Is it ok to advertise "free checking" if we charge a paper statement fee if you do not enroll in E-statements?
It’s not a best practice, and could be deemed UDAAP, because if the customer DOESN’T sign up for E-statements – the bank knows the customers are going to be charged a monthly fee for the paper statements which is a fee imposed on a regular basis.
Commentary to 12 cfr 1030.8
"3. Fees affecting “free” accounts. For purposes of determining whether an account can be advertised as “free” or “no cost,” maintenance and activity fees include:
ii. Transaction and service fees that consumers reasonably expect to be imposed on a regular basis."
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