Disclosure Requirements for Multiple Members on the Same Account

Written by Jennifer Aguilar, Regulatory Compliance Counsel, NAFCU

The NAFCU Compliance Team has received a few questions recently on providing disclosures when there is more than one member on an account. Essentially, the question is: If there are multiple members on one account, does [insert regulation of your choice here] require a credit union to provide the required disclosure to each member?

For most of the disclosures credit unions are required to provide, such as account opening and change in terms, the answer is no. However, some of the regulations provide special rules for certain disclosures. The chart below goes through some of the various regulations and indicates whether notice to any one member is sufficient or whether multiple disclosures are required. This NAFCU blog discusses the adverse action notice requirements for joint applicants under the FCRA.

Regulation	Disclosure Covered	Citation	Disclosure Requirement
Regulation B	Approvals, counteroffers and adverse action notices	12 CFR § 1002.9(f)	Can be provided to any one applicant; must be provided to the primary applicant if there is one. For adverse action on existing accounts, “applicant” includes persons who have already received credit.
Regulation B	Appraisal disclosure and copies of all appraisals/valuations	12 CFR § 1002.14(a) and related commentary	Can be provided to any one applicant; must be provided to the primary applicant if there is one.
Regulation E	Account opening disclosures, change in terms notice, annual error resolution notice, periodic statements, preauthorized transfer notice and overdraft opt-in notice	12 CFR § 1005.4(c)(2)	Can be provided to any one accountholder.
	Electronic terminal receipts	12 CFR § 1005.9(a)	Must be provided to the consumer initiating the EFT at the electronic terminal.
	Remittance disclosures	12 CFR § 1005.31(b)	Must be provided to the “sender.”
Regulation CC	All required disclosures	12 CFR § 229.15(c)	Can be provided to any one accountholder.
Regulation P	Initial, annual and revised notice when the product or service involved is not a loan	12 CFR § 1016.9(i)(1) and NCUA guidance	Can be provided to any one accountholder.
	Initial notice when the product or service involved is a loan	12 CFR § 1016.9(i)(2)	Must be provided to each borrower and guarantor.
	Annual and revised notice when the product or service involved is a loan	12 CFR § 1016.9(i)(2) and NCUA guidance	Can be provided to any one borrower or guarantor.
Regulation X	All required disclosures	12 CFR § 1024.11	The rule generally requires disclosures to be provided to “the addresses” on the loan application which seems to suggest if there is more than one address on the application, disclosures need to be sent to each address.
Regulation Z – open-end credit	All required disclosures for transactions that are not secured by a consumer’s principal dwelling	12 CFR § 1026.5(d)	Can be provided to any one borrower who is primarily liable.
	Account opening disclosures and rescission notice for transactions that are secured by a consumer’s principal dwelling	12 CFR § 1026.5(d)	Must be provided to each consumer who has the authority to rescind the transaction.
	Disclosures other than account opening disclosures and rescission notice for transactions that are secured by a consumer’s principal dwelling	12 CFR § 1026.5(d)	Can be provided to any one borrower who is primarily liable.
Regulation Z – closed-end credit	All required disclosures for transactions that are not secured by a consumer’s principal dwelling	12 CFR § 1026.17(d)	Can be provided to any one borrower who is primarily liable.
	Closing disclosure and rescission notice for transactions that are secured by a consumer’s principal dwelling	12 CFR § 1026.17(d) and related commentary	Must be provided to each consumer who has the authority to rescind the transaction.
	Disclosures other than closing disclosure and rescission notice for transactions that are secured by a consumer’s principal dwelling	12 CFR § 1026.17(d) and related commentary	Can be provided to any one borrower who is primarily liable.
	Early ARM disclosures under section 1026.19(b) for transactions that are secured by a consumer’s principal dwelling	12 CFR § 1026.17(d) and related commentary	Must be provided to the consumer expressing an interest in a variable rate loan program.

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