NEWS: This Compliance Courier describes the changes to Form #83005 that we mentioned were forthcoming in the November 3, 2021 webinar, WCUL Account Agreement Forms Update. (See links at the end of this courier to the recorded webinar and updated slide handouts.)
- Three sentences in the WCUL #83005 Your Account Agreement, with Arbitration Agreement have been revised, and the form is now available.
- The revised form has a 10/2021 revision date. The 9/2021 version you have previously seen will not be in use by any credit union.
- The WCUL #83006 Your Account Agreement (4/2021) is not affected by this issue.
What is the change?
The 10/21 change to form #83005 is that the effective date of the Arbitration Agreement is 31 days after the accountholder is notified of the agreement (by giving it to them, whether in person, by mail, personal delivery, or sending it electronically). The length of the accountholder’s opt-out period remains 30 days, as explained below.
- Part I consists of the membership and account agreement.
– For any new account (suffix). Part I takes effect immediately upon delivery.
– For any already existing account (suffix), as a change in terms Part I takes effect 30 days after notification (giving the form to the accountholder).
- Part II consists of the Arbitration Agreement.
Part II Arbitration Agreement takes effect 31 days after notification (by giving the form to the accountholder personally, by mailing it, or by electronic delivery) except in regard to an individual person who exercises the right to opt-out within 30 days after notification.
When sending a change in terms notice for #83005 to existing accountholders, make clear to the consumer that:
- Part I Membership and Account Agreement takes effect 30 days after notification (giving the form to the accountholder personally, by mailing it, or by electronic delivery).
- Part II Arbitration Agreement takes effect 31 days after notification (giving the form to the accountholder personally, by mailing it, or by electronic delivery) except in regard to an individual person who exercises the right to opt-out within 30 days after notification.
The discussion of the change above does not apply if you will be using #83006 Your Account Agreement (without an arbitration agreement). Your brochure only consists of the Membership and Account Agreement. When used to replace the current use of the old #82004, notify existing accountholders that the new form (#83006) takes effect 30 days after “notification” (giving the form to the accountholder personally, by mailing it, or by electronic delivery).
Revised text
C. RIGHT TO OPT OUT OF ARBITRATION AGREEMENT.
Each individual signer on your account has the right to opt out of this Arbitration Agreement and it will not affect any other terms and conditions of your accounts or your relationship with us. To opt out, you must notify us in writing of your intent to do so within 30 days after we have notified you of the Arbitration Agreement. Your notice of intent to opt out must be a letter that is signed by you that uses words to convey your election to opt out, such as “I am opting out of the Arbitration Agreement.” The letter must also include your name and address. You may send such notice to us at: ____________________________________________ Credit Union, Attn: Risk Management, ___________________________. Please retain a copy of the letter you send. Any opt-out of arbitration will apply only to this Arbitration Agreement (and not to any prior or subsequent arbitration agreement into which you enter with us).
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D. ADDITIONAL PROVISIONS.
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3. Effective Date. This Arbitration Agreement is effective on the 31st day after we have notified you of the Arbitration Agreement (“Effective Date”), unless you have opted out in accordance with the requirements of the RIGHT TO OPT-OUT provision above. We notified you of the Arbitration Agreement on the date that we mailed it to you, handed it to you, or sent it to you electronically. This Arbitration Agreement will survive the termination of your membership and closure of any account.
Updated Guidance
The League has updated some of the previously distributed guidance on the updated account forms to avoid conflict with the 10/2021 revision of #83005 as described above. Those documents with new notations are highlighted in yellow in the list below. To avoid confusion, please replace your copies of the old guidance documents with the new, using the links provided:
Compliance Couriers
Forms and Instructions
• Your Account Agreement, with Arbitration Agreement (#83005, rev. 10/21), 14 pp.
– Instructions, rev. 11/21
• Your Account Agreement (#83006, rev. 4/21), 12 pp.
• Account Ownership Agreement (#82024, rev. 6/21), 2 pp.
• Custodial Account Ownership Agreement (#81036, rev. 6/21), 2 pp.
• Business/Organization Account Ownership Agreement (#81057, rev. 6/21), 2 pp.
November 3, 2021 Webinar
WCUL Account Agreement Forms Update recording –
- Access Passcode: nXp!#81$