§ 205.5. Issuance of access devices.
187 words·~1 min read·
/us/cfr/t12/s§ 205.5·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(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 § 205.7, 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.