[kmeade]

I attended the Advertising Rules webinar on May 19, 2020, and I would like to ask a follow-up question.
Looking at 1030.8(e)(ii), it seems like a banner located outside the bank would fall into the exemption category? For a banner to promote an overdraft program placed outside, on the bank’s premises, where it can be seen by customers going through the drive-thru, what language would be required to be included to be compliant?

[rcooper]

I agree that the banner would qualify as outdoor media and would be expemt from many of the additional advertising requirements under 1030.8 and the additional requirements for overdrafts under 1030.11. You still need to review those sections to make sure you’re complying with the items that continue to be required. Also, remember to include your Member FDIC logo.

[susan costonis]

I agree with Robin’s comments about that a banner qualifies as outdoor media, and is exempted from additional advertising requirements under 1030.8. Since overdraft rules have become under more regulatory scrutiny in recent years, I would strongly encourage you to ask YOUR primary regulator for additional guidance. In addition to the Reg DD rules, there is always a concern about potential UDAAP challenges. At a minimum you may want to include a statement on the banner that “fees may apply and that consumers should contact an employee for further information about applicable fees and terms”. (NOTE: this is a direct quote from 1030.11 (2)(4) and exception for INDOOR signs.

As Robin noted, the specific requirements for overdraft advertising are in 1030.11. This is the exception for INDOOR signs (not for a banner outside of the branch):
1030.11 (b)(4)
(4) Exception for indoor signs. Paragraph (b)(1) of this section does not apply to advertisements for the payment of overdrafts on indoor signs as described by § 1030.8(e)(2) of this part, provided that the sign contains a clear and conspicuous statement that fees may apply and that consumers should contact an employee for further information about applicable fees and terms. For purposes of this paragraph (b)(4), an indoor sign does not include an ATM screen.

The 1030.8 rules for advertising DO have an exemption for outdoor media. However, it limits the additional information to these categories
(e) Exemption for certain advertisements. (1) Certain media. If an advertisement is made through one of the following media, it need not contain the information in paragraphs (c)(1), (c)(2), (c)(4), (c)(5), (c)(6)(ii),(d)(4), and (d)(5) of this section:

It does not specifically exempt 1030.8 (f) for the additional disclosures in connection with the payment of overdrafts.
It’s always best to ask permission, rather than forgiveness, from your regulator when advertising for overdraft plans.

[susan costonis]

I agree with Robin’s comments about that a banner qualifies as outdoor media, and is exempted from additional advertising requirements under 1030.8. Since overdraft rules have become under more regulatory scrutiny in recent years, I would strongly encourage you to ask YOUR primary regulator for additional guidance. In addition to the Reg DD rules, there is always a concern about potential UDAAP challenges. At a minimum you may want to include a statement on the banner that “fees may apply and that consumers should contact an employee for further information about applicable fees and terms”. (NOTE: this is a direct quote from 1030.11 (2)(4) and exception for INDOOR signs.

As Robin noted, the specific requirements for overdraft advertising are in 1030.11. This is the exception for INDOOR signs (not for a banner outside of the branch):
1030.11 (b)(4)
(4) Exception for indoor signs. Paragraph (b)(1) of this section does not apply to advertisements for the payment of overdrafts on indoor signs as described by § 1030.8(e)(2) of this part, provided that the sign contains a clear and conspicuous statement that fees may apply and that consumers should contact an employee for further information about applicable fees and terms. For purposes of this paragraph (b)(4), an indoor sign does not include an ATM screen.

The 1030.8 rules for advertising DO have an exemption for outdoor media. However, it limits the additional information to these categories
(e) Exemption for certain advertisements. (1) Certain media. If an advertisement is made through one of the following media, it need not contain the information in paragraphs (c)(1), (c)(2), (c)(4), (c)(5), (c)(6)(ii),(d)(4), and (d)(5) of this section:

It does not specifically exempt 1030.8 (f) for the additional disclosures in connection with the payment of overdrafts.
It’s always best to ask permission, rather than forgiveness, from your regulator when advertising for overdraft plans.
HERE ARE THE REQUIREMENTS FOR ADVERTISING ODP:
1030.11 b – NOTE – This could be very challenging to include on an outside banner

(b) Advertising disclosures for overdraft services. (1) Disclosures. Except as provided in paragraphs (b)(2) through (4) of this section, any advertisement promoting the payment of overdrafts shall disclose in a clear and conspicuous manner:
(i) The fee or fees transactions for which a fee for paying an overdraft may be imposed;
(iii) The time period by which the consumer must repay or for the payment of each overdraft;
(ii) The categories of
cover any overdraft; and
(iv) The circumstances under which the institution will not pay an overdraft

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