Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Marketing Compliance Audit INTRODUCTION Before beginning this audit: • Obtain and review your bank’s policies, procedures, and marketing plans, including any required approval for expenses and for new marketing campaigns. • Read the minutes to the bank’s marketing committee. • Review the budget and expense reports for marketing campaigns. • Interview marketing staff and other appropriate bank staff about their understanding of and adherence to the bank’s marketing policy. The following checklist should be modified to fit the specifics of your institution. MARKETING AUDIT PROCEDURES Yes, No N/A 1. Have all marketing and advertising programs been completed within the budget or allowable variance? 2. Are the fees paid for marketing and advertising programs and approved by the appropriate level of management for items such as: Postage? Printing? Promotional items? Radio and television airtime? 3. Have all appropriate marketing and bank staff members that are responsible for providing customer information about marketing programs received adequate training? 4. Is there an adequate review system in place for Work Paper Reference Comments advertisements and marketing campaigns (e.g., committee or senior management approval)? 5. Are prospective suppliers required to submit competitive bids for any marketing or advertising programs? 6. Are all giveaways or promotional inventoried and properly secured? items 7. Do marketing materials and advertisements comply with applicable regulations? (See Deposit Advertising Compliance Audit, Loan/Lease Advertising Compliance Audit, and Branch Signage and Disclosure Requirements Compliance Audit.) 8. Do the bank’s advertisements accurately and fairly represent all of its products and services? (See Unfair, Deceptive, and Abusive Acts and Practices (UDAAP) Policy and Procedures; Unfair, Deceptive, and Abusive Acts and Practices (UDAAP) Compliance Audit; Overdraft Privilege Policy and Procedures — FDIC-Regulated Banks and Thrifts; Overdraft Privilege Compliance Audit — FDIC-Regulated Banks and Thrifts; Overdraft Privilege Policy and Procedures — Non-FDICRegulated Banks and Thrifts; and Overdraft Privilege Compliance Audit — Non-FDICRegulated Banks and Thrifts.) 9. Does the bank specifically prohibit the following deceptive or misleading marketing practices for closed-end home loans (Regulation Z, 12 CFR 1026): Stating "fixed" rates or payments for loans whose rates or payments can vary without adequately disclosing that the interest rate or payment amounts are "fixed" only for a limited period of time, rather than for the full term of the loan? Comparing an actual or hypothetical rate or payment obligation to the rates or payments that would apply if the consumer obtains the advertised product, unless the advertisement states the rates or payments that will apply over the full term of the loan? Characterizing the products offered as "government loan programs," "governmentsupported loans," or otherwise endorsed or sponsored by a federal or state government entity even though the advertised products are not government-supported or -sponsored loans? Using advertisements, such as solicitation letters, that display the name of the consumer's current mortgage lender, unless the advertisement also prominently discloses that the advertisement is from a mortgage lender not affiliated with the consumer's current lender? Claiming a debt elimination program if the product advertised would merely replace one debt obligation with another? Creating a false impression that the mortgage broker or lender is a "counselor" for the consumer? Using a foreign-language advertisement in which certain information, such as a low introductory "teaser" rate, is provided in a foreign language, while other required disclosures are provided only in English? Affiliated Marketing Opt-Out Rules (12 CFR 1022, Subpart C) 1. Does the financial institution receive consumer eligibility information from an affiliate? If it does not, do not continue the audit. 2. Does the financial institution use consumer eligibility information received from an affiliate to make a solicitation for marketing purposes that is subject to the notice and opt-out requirements? If it does not, stop here. 3. Are procedures in place to evaluate the bank's policies, procedures, practices, and internal controls to ensure that, where applicable, the consumer is provided with an appropriate notice, a reasonable opportunity, and a reasonable and simple method to opt out of the bank's using eligibility information to make solicitations for marketing purposes to the consumer, and that the bank is honoring the consumer's opt-outs? 4. If compliance risk management weaknesses or other risks requiring further investigation are noted, does the bank obtain and review a sample of notices to ensure technical compliance, and a sample of opt-out requests from consumers to determine if the bank is honoring the opt-out requests? 5. Are the opt-out notices clear, conspicuous, and concise and contain the required information, including the name of the affiliate(s) providing the notice, a general description of the types of eligibility information that may be used to make solicitations to the consumer, and the duration of the opt out? 6. Does the bank review opt-out notices that are coordinated and consolidated with any other notice or disclosure that is required under other provisions of law for compliance with the affiliate marketing regulation to determine whether the opt-out notices and renewal notices provide the consumer a reasonable opportunity to opt out and a reasonable and simple method to opt out? 7. Are the opt-out notices and renewal notices provided (by mail, delivery, or electronically) so that consumers can reasonably be expected to receive that actual notice? 8. After an opt-out period expires, does the bank provide a consumer a renewal notice prior to making solicitations based on eligibility information received from an affiliate? Marketing Private Education Loans 9. Does the bank refrain from using the name, emblem, mascot, or logo of a covered educational institution, or other words, pictures, or symbols identified with a covered educational institution (except in circumstances noted below) in the marketing of private education loans in a way that implies that the covered educational institution endorses the creditor's loans? 10. If the bank mentions the name of a school in its marketing material for private education loans, does the bank also include a clear and conspicuous disclosure that is equally prominent and closely proximate to the reference to the school that the school does not endorse the bank's loans and is not affiliated with the bank? 11. If the bank enters into an arrangement with a school where they have agreed to endorse the bank's private education loans, does the bank include in any marketing material a disclosure that is equally prominent and close to the reference to the school that states that the bank's loans are not offered or made by the school but are made by the bank? Marketing Credit Cards to College Students 12. Does the bank refrain from offering college students any tangible item to induce them to apply for a credit card if the offer is made: On the campus of an institution of higher education? Near (within 1000 ft) the campus of an institution of higher education? At an event sponsored by or related to an institution of higher education? Note: Examples of tangible items are T-shirts, mugs, and gift cards. The bank may offer reward points or discounts which the regulation defines as "intangible" items. 13. If, as a card issuer, the bank is party to one or more college credit card agreements in effect at any time during the year, does it register with the Federal Reserve Board (Fed) and send an annual report? (We must register with the Fed and send an annual report.) 14. Does the annual report include the following: A copy of any college credit card agreement to which the bank was a party that was in effect at any time during the period covered by the report? A copy of any memorandum of understanding in effect at any time during the period covered by the report between the bank and an institution of higher education or affiliated organization that directly or indirectly relates to the college credit card agreement or that controls or directs any obligations or distribution of benefits between any such entities? The total dollar amount of any payments pursuant to a college credit card agreement from the bank to an institution of higher education or affiliated organization during the period covered by the report, and how such amounts are determined? The number of credit card accounts opened pursuant to any college credit card agreement during the period covered by the report? The total number of credit card accounts opened pursuant to any such agreement that were open at the end of the period covered by the report? 15. Does the bank have procedures to ensure the annual report for each calendar year is sent to the Fed by the first business day on or after March 31 of the following year?