TISA / NCUA – What is a “bonus” and if stated, what must I disclose?

Compliance > Advertising / Marketing Misc. > TISA / NCUA
Q:  What is a “bonus” and if stated, what must I disclose?
 
A:  Bonus means a premium, gift, award, or other consideration worth more than $10 (whether in the form of cash, credit, merchandise, or any equivalent) given or offered to a member during a year in exchange for opening, maintaining, or renewing an account, or increasing an account balance. The term does not include dividends, other consideration worth $10 or less given during a year, the waiver or reduction of a fee, the absorption of expenses, non-dividend membership benefits, or extraordinary dividends.
 
If a bonus is stated in an advertisement, the advertisement shall state the following information, to the extent applicable, clearly and conspicuously (unless such information is exempted by the regulation):
 
(1) The “annual percentage yield,” using that term;
 
(2) The time requirements to obtain the bonus;
 
(3) The minimum balance required to obtain the bonus;
 
(4) The minimum balance required to open the account, if it is greater than the minimum balance necessary to obtain the bonus; and
 
(5) When the bonus will be provided.
 
 
 

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