12 C.F.R. § 1005.5

Issuance of access devices

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(a) Solicited issuance. Except as provided in paragraph (b) of this section, a financial institution may issue an access device to a consumer only:

(1) In response to an oral or written request for the device; or

(2) As a renewal of, or in substitution for, an accepted access device whether issued by the institution or a successor.

(b) Unsolicited issuance. A financial institution may distribute an access device to a consumer on an unsolicited basis if the access device is:

(1) Not validated, meaning that the institution has not yet performed all the procedures that would enable a consumer to initiate an electronic fund transfer using the access device;

(2) Accompanied by a clear explanation that the access device is not validated and how the consumer may dispose of it if validation is not desired;

(3) Accompanied by the disclosures required by § 1005.7, of the consumer's rights and liabilities that will apply if the access device is validated; and

(4) Validated only in response to the consumer's oral or written request for validation, after the institution has verified the consumer's identity by a reasonable means.

Notes of Decisions

Cited in 3 cases (3 in the last 5 years), 2021–2024 · leading case: Rita Grenier & Edwin Grenier, Individually & on Behalf of All Others Similarly Situated v. P Granite State Credit Union, Does 1 through 5, 2021 DNH 172 (D.N.H. 2021).

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Rita Grenier & Edwin Grenier, Individually & on Behalf of All Others Similarly Situated v. P Granite State Credit Union, Does 1 through 5, 2021 DNH 172 (D.N.H. 2021). “Indeed, “[i]f use of a model clause were, by itself, an impenetrable shield, a consumer would have no redress” when Model Form A-9 does not actually provide a “clear and readily understandable” description, 12 C.F.R. § 1005.5 , of an institution’s overdraft services.”

Watkins v. Rapid Fin. Solutions, Inc. (D. Nev. 2024). · cites it 2× “” 12 C.F.R. § 1005.5 (b)(1) (defining ‘not yet validated’); accord 7 15 U.”

Grenier v. Granite State Credit Union (D.N.H. 2021). “Indeed, “[i]f use of a model clause were, by itself, an impenetrable shield, a consumer would have no redress” when Model Form A-9 does not actually provide a “clear and readily understandable” description, 12 C.F.R. § 1005.5 , of an institution’s overdraft services.”

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