It must provide in writing to consumer at least 21 days before the effective date of any change in a term or condition disclosed in the initial disclosure statement if the change results in:
"¢ Increased fees
"¢ Increased liability for the consumer
"¢ Fewer types of available EFTs
"¢ Stricter limitations on frequency or dollar amount of EFTs
What is it?
When there is a requirement to inform consumers in writing at least 21 days before the effective date of any change in a term or condition disclosed in the initial disclosure statement, specifically if the changes involve increased fees, increased liability for the consumer, fewer types of available electronic fund transfers (EFTs), or stricter limitations on the frequency or dollar amount of EFTs, it is known as a Change-in-terms notice. This ensures that consumers are adequately informed about significant changes affecting their use of EFT services.
The correct answer is A. Change-in-terms notice. This notice is required to be provided in writing to consumers at least 21 days before the effective date of any change in terms or conditions that were disclosed in the initial disclosure statement if the change results in increased fees, increased liability for the consumer, fewer types of available electronic fund transfers, or stricter limitations on the frequency or dollar amount of transfers. This requirement ensures that consumers are adequately informed about changes that could affect their use of electronic fund transfer services.