Marketing & Compliance: A Creative Partnership With a Common Goal
Marketing and compliance don’t always speak the same language. One dreams of taglines and color palettes; the other thinks in citations and footnotes. However, when it comes to financial institutions’ advertising, these departments are more alike than they seem. Both aim to build trust, protect the brand, and connect with the communities they serve, just from different angles.
Marketers are masters of attention. They know how to make a checking account sound exciting, turn a savings rate into a headline, and make “no annual fee” feel like a gift. Their job is to spark interest, drive clicks, and build loyalty.
But in the financial world, every buzzword comes with a responsibility:
- “0% APR” needs context.
- “Free checking” might not be so free.
- “Limited time offer” must be backed by actual terms.
This is where compliance teams step in, not to squash creativity, but to shape it. Their role is to help ensure every claim is accurate, every disclosure is present, and every advertisement meets the standards set by governing bodies. Compliance helps identify the key rules that guide the advertising process, safeguarding that marketing efforts are not only compelling but also correct.
Together, marketing and compliance form a strategic alliance. Marketing tells the story; compliance makes sure it’s non-fiction. And when they collaborate from the start, the result is engaging and trustworthy messaging.
Bank Marketing Compliance & Understanding Regulation Z1
When it comes to bank marketing, transparency isn’t just the best practice, it’s the law. Under Regulation Z, part of the Truth in Lending Act (TILA), if your promotional materials mention credit terms like annual percentage rates (APRs), monthly payments, or enticing phrases like “$500 total cost of credit,” you’re required to go the extra mile with disclosures. This gives your customers the full story, not just the headline. You will need to include the actual APR, repayment terms, and whether the offers are available to everyone or just a select few.
TILA outlines key disclosures that lenders must provide, but there are differences when advertising open- or closed-end credit. Two provisions apply to both types of credit:
- advertised terms must actually be available, and
- required disclosures must be clear and conspicuous.
Loan collateral can also impact your disclosure requirements, especially if it is secured by a dwelling. Disclosures are triggered when certain terms are stated in marketing materials. Open the accordions below to understand the required and optional disclosures for each triggering term and product.
Closed-end Credit / Finance Charge
| Product | Finance Charge Stated | Interest Rate Stated |
Non-dwelling secured | APR | Simple annual rate or periodic rate |
Dwelling secured | APR | Simple annual rate |
Closed-end Credit / Triggering Terms
Triggering Terms | Examples | Required Disclosures |
The amount of any down payment | Only 5% down As low as $100 down |
|
The number of payments or period of repayment | 30-year mortgage Repayment in as many as 36 monthly installments | |
The amount of any payment | Payable in installments of $100 $25 weekly | |
The amount of any finance charge | $500 total cost of credit $2 monthly carrying charge | |
Tax implications | 100% financing | If a printed or online advertisement for dwelling-secured credit states that the advertised extension of credit may exceed the fair market value (FMV) of the dwelling, the advertisement must clearly and conspicuously state that:
|
Open-end / Non-dwelling Secured / Triggering Terms
Triggering Terms | Required Disclosures |
A statement of an interest rate or APR |
|
A statement regarding the circumstances under which any charge may be imposed, the amount of the charge, or an explanation of how the charge is determined | |
A statement of when a finance charge begins to accrue or any period credit is extended without incurring a charge | |
A statement of any finance charge or how a finance charge will be determined | |
An explanation of how the balance upon which a finance charge will be imposed is calculated |
Open-end / Dwelling Secured / Advertising Disclosures
Triggering Terms | Required Disclosures |
A statement of an interest rate or annual APR |
|
A statement regarding the circumstances under which any charge may be imposed, the amount of the charge, or an explanation of how the charge is determined | |
A statement of when a finance charge begins to accrue or any period credit is extended without incurring a charge | |
A statement of any finance charge or how a finance charge will be determined | |
An explanation of how the balance upon which a finance charge will be imposed is calculated |
Keep in mind that negative and positive statements trigger the requirement for additional information. For example, advertising a plan as having zero interest or no annual membership fee needs more disclosures.
Of course, not every loan falls under TILA. Your business or commercial purpose loans are exempt from the advertising requirements. As you can see, the rules have many nuances and exceptions, and it can be difficult to keep all of those straight. Regulatory compliance support platforms can help by giving you access to advisors who can help review advertisements for the required disclosures and answer other compliance questions.
Regulation DD – Part 707: Truth in Savings Act2
Thinking of offering a sign-up bonus for a new checking or savings account? Regulation DD from the Truth in Savings Act would like to weigh in. If a bonus is mentioned in an advertisement, whether it is cash, a gift card, or a promotional item, the advertisement must clearly and conspicuously disclose:
- The time requirement to obtain the bonus;
- The minimum balance required to obtain the bonus;
- The minimum balance required to open the account, if it is greater than the minimum balance necessary to obtain the bonus; and
- When the bonus will be provided.
Regulation DD makes sure that flashy incentives do not lure consumers without understanding what is required to earn them.
UDAAP: Unfair, Deceptive, or Abusive Acts or Practices3
This broad rule prohibits any advertising that could mislead a reasonable consumer. That includes vague language, hidden fees, or exaggerated claims. Compliance is a strategic partner that helps avoid these pitfalls and assists in protecting the brand.
UDAAPs represent a foundational principle in financial marketing regulation, requiring banks and marketers to prioritize transparency, fairness, and clarity in promotional communications. This broad rule prohibits any advertising that could mislead a reasonable consumer. That includes vague language, hidden fees, or exaggerated claims. Consequently, marketers must scrutinize language and promises to make sure that every message reflects the true nature of a product or service, eliminating any potential for misinterpretation or consumer harm.
Compliance is a strategic partner to help avoid these pitfalls and protect the brand. Moreover, effective risk management involves routine review and collaboration between marketing and compliance teams, fostering a culture of integrity that safeguards long-term customer trust and corporate reputation in a rapidly evolving regulatory landscape. Compliance support platforms, like ProBank Advisor from Forvis Mazars, can aid in the advertisement review process through advertisement reviews and other helpful resources.
CAN-SPAM Act & Digital Advertising4
Compliance is just as critical in the digital space. Social media posts, banner ads, and influencer partnerships must also follow truth-in-advertising principles. The CAN-SPAM Act has its own set of rules for email campaigns.
It sets the standard for commercial email, giving recipients the right to opt out and protecting them from deceptive practices. This requires marketers to include a clear opt-out link, accurate subject lines, and the sender’s physical address. Violations are approximately $53,000 per email. You can’t hide who you are or make it hard for people to unsubscribe. This Act applies to any commercial email. And while transactional emails, like receipts or account updates, are mostly exempt, once you start promoting your products through email, you are likely in CAN-SPAM territory.
Messages must be compliant and secure. The rules provide the frameworks to prevent phishing and improve deliverability, making compliance a win for marketing and IT.
Clicks & Compliance: A Team Effort
Navigating bank marketing regulations can feel like a maze, but compliance shouldn’t be an obstacle; it should be your guide. When marketing and compliance collaborate from the start, campaigns aren’t just creative; they’re trustworthy and lasting.
Yes, compliance may ask for adjustments, but their goal is to keep the organization safe, consumers informed, and regulators satisfied. Behind every effective ad is a compliance partner making sure that it’s both engaging and accurate.
So, here’s to marketers with bold ideas and compliance professionals who ground them. Together, they do more than promote products; they protect people and build lasting trust.
ProBank Advisor: Your Compliance Compass
One of the biggest challenges in bank marketing is navigating the complexities of regulations. Luckily, you don’t have to do it alone. Platforms like ProBank Advisor from Forvis Mazars can connect you and your team to experienced compliance advisors who can answer questions, review advertisements and other documents, and provide helpful resources like compliance guides and regulatory tracking. Get started with ProBank Advisor today.
- 1“12 CFR Part 1026 / Regulation Z / Truth in Lending Act.”
- 2“12 CFR Part 1030 / Regulation DD / Truth in Savings Act.”
- 3“Dodd-Frank Act, Title X, Subtitle C, Sec. 1036; PL 111-203 (July 21, 2010).”
- 4“15 U.S.C §§ 7701-7713 / Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003.”