Express consent for financial products and services: your rights
Learn about express consent before you get a financial product or service.
Knowing when your rights apply
Your rights regarding express consent apply when you deal with a federally regulated financial institution. For example, a bank or federal credit union.
Check if your financial institution is federally regulated.
Learn more about how your banking rights are protected.
Understanding express consent
Express consent means federally regulated financial institutions must get your permission before providing you with a financial product or service.
This includes credit cards, lines of credit and loans. They can get your consent verbally or in writing.
Express consent matters because a financial product or service you didn’t agree to may:
- cost you money through fees
- affect your credit score
- affect your ability to borrow money without you knowing it
Learn more about credit reports and scores.
Giving express consent
Federally regulated financial institutions must communicate with you in a manner, and using language, that’s clear, simple and not misleading.
It must be clear that they’re asking for your consent to provide you with a financial product or service.
A federally regulated financial institution must get your express consent before providing you with:
- a product or service, including:
- a credit card
- a loan
- a line of credit
- an optional product or service added for a fee to a product or service you already have, such as:
- insurance for your credit card (credit balance insurance or balance protection)
- insurance for a loan or line of credit
- insurance for a mortgage
Just using a product or service does not count as express consent.
Express consent for optional products and services
Before you agree to the optional product or service, banks must give you a separate disclosure statement that clearly explains it.
The disclosure statement must include:
- what the product or service is, including:
- a description of the optional product or service
- how long the agreement lasts (term)
- the steps to use the product or service
- how you may cancel the product or service, including:
- if you may cancel the agreement
- when cancellation takes effect
- if the institution will refund or credit any amount for the part you didn’t use
- what charges apply, including:
- a list of all charges or how they calculate the charges, with an example
- the date you can start using the product and the date charges apply (if different)
Banks must also clearly state that the product or service is optional, including:
- that you can decline it
- any cost, fee or premium associated with it
For example, agreeing to get a credit card doesn’t mean you’re also agreeing to credit balance insurance.
You must give your express consent for each product or service, one for the credit card and one for the credit balance insurance.
If you consent verbally, the financial institution must confirm it to you in writing without delay. It may send it electronically if you agreed to receive it that way.
Rules for third-party sellers
Some federally regulated financial institutions use third parties to sell products and services like credit cards.
You usually find them in places like:
- grocery stores
- sporting events
- university and college campuses
- airports
- gas stations
- coffee shops
These third parties must follow the same rules as federally regulated financial institutions. They must get your express consent before giving you a financial product or service.
Tip
Know what you’re signing up for.
Third-party sellers must communicate in a manner and language that’s clear, simple and not misleading.
Knowing when promotional offers end
Financial institutions may offer promotions to encourage you to apply for a product or service. They may call them preferential, introductory or special offers.
These promotional offers may end after:
- a set period, for example, after 3 months
- a set number of uses, for example, after 12 uses
Promotional offers that expire after a set period
If you’re dealing with a bank, they must tell you the day the promotional offer ends. If you keep using the product or service after that day, extra charges may apply.
However, the bank can’t charge you for the product or service once the promotion ends unless it gets your express consent at least 5 business days before that day.
Federally regulated financial institutions other than banks must tell you at least 30 days before the offer ends:
- the date the offer will end
- what charges will apply if you continue to use the product or service after that date
Offers that expire after a set number of uses
Banks must tell you after the last use that you no longer get the offer.
If you keep using the product or service after that last use, extra charges may apply.
However, banks must get your express consent to impose any added charges. They must do this immediately after that last use.
Federally regulated financial institutions other than banks must tell you after the last use:
- that the offer has ended
- how they will impose charges if you continue to use it
Filing a complaint if you didn’t consent
If you receive a financial product or service without your consent, you can file a complaint with your institution.
Learn more about filing a complaint about financial products and services.