Can A Bank Change The Terms Of A CD By One-Party Fiat?

Zemo999
Zemo999   |     |   51 posts since 2017

I had planned my 5-year financial future going forward by opening a series of laddered CD's, that were advertised as add-on CDs with no contribution limits for the life of the CDs. Some of them were existing specials. Others, I asked my contact at the bank what the best rate they would give me for a jumbo for a given term, and she came back with rates that were very attractive. And again, the understanding of the terms of the CD was that unlimited add-ons were allowed. As of today, I was told that bank management told the employees that they were limiting yearly contributions to such jumbo CD's to $6k per year! They cited some language in some 'bank terms' document that they said allowed them to change the terms or features of a CD on the fly, without customer approval. Whether this is ethical, I don't think that's in doubt. But is it legal? And if that question is cloudy, what kind of legal recourse might one have? TIA.



Answers
ConfedrcyDunces
ConfedrcyDunces   |     |   133 posts since 2016
read the disclosure statement.
me1004
me1004   |     |   874 posts since 2010
He didn't name the CU, but I expect it is the one we have another thread on and Ken followed up with a story saying the CU had changed its mind, would continue to allow unlimited deposits to the CD for existing CD holders:

https://www.depositaccounts.com/blog/2019/10/credit-union-honor-terms-existing-addon-cds.html


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