[kmeade]

Question-related to forum post “Requiring deposit acct as condition of loan.”
I am just verifying that it is okay to require the customer to open an account as a condition of the loan. Are there any other restrictions associated with requiring a consumer to open an account as a condition for a loan?

I understand the need to monitor for consistency to avoid Fair Lending and UDAAP violations.

Hypothetical example: Every customer must open or have a deposit account to get a new loan?

Topic

[jholzknecht]

A couple of things come to mind:
* – Section 913 of the Electronic Fund Transfers Act prohibits conditioning an extension of credit on the requirement that payments be made by electronic fund transfers.
* – Section 1026.18(r) requires an disclosure that the annual percentage rate does not reflect the effect of the required deposit, if the creditor requires the consumer to maintain a deposit as a condition of the specific transaction.

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