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Can I offer a loyalty program for my customers in Pennsylvania? What are the requirements?
Yes, you can offer a loyalty program for your customers in Pennsylvania. However, there are certain requirements that must be met.
Requirements for Offering a Savings Promotion Program
According to 12 PACS 5703 and 5705, an eligible financial institution may conduct a savings promotion program as long as it does not jeopardize the institution’s safety and soundness or mislead the public. The program must include programs to encourage an eligible individual to do at least one of the following: (1) Deposit or transfer money into a qualified account on a recurring or automatic basis. (2) Refinance or consolidate existing debt to obtain a lower interest rate. (3) Pay off or reduce outstanding balances to lower the eligible individual’s total debt ratio or revolving debt ratio. (4) Prepare a budget or a debt-reduction plan. (5) Attend financial literacy seminars or counseling sessions sponsored by the eligible financial institution that are offered free of charge. (6) Use free online financial education, budgeting or debt-reduction tools. The terms and conditions of the savings promotion program must be disclosed to the public and each participant, and the odds of winning the savings promotion program will be determined based on the number of entries received. The winner is responsible for all applicable Federal, State and local taxes. [1.1][1.2][1.4]
Requirements for Payment Policies
If the loyalty program involves payment for services, it must comply with the payment policies outlined in 55 PACO Section 52.42. The Department will only pay for a service in accordance with this chapter and Chapters 1101 and 1150 (relating to general provisions; and MA Program payment policies). The Department will only pay for a service in the type, scope, amount, duration, and frequency as specified on the participant’s service plan as approved by the Department. [3.1]
Conclusion
Based on the information provided in the context documents, it is possible to offer a loyalty program in Pennsylvania as long as it complies with the requirements outlined in 12 PACS 5703, 5705, and 55 PACO Section 52.42.
Source(s):
- [1.1] Savings promotion program.
- [1.2] Qualified financial program.
- [3.1] Payment policies.
- [1.4] Terms and conditions.
Jurisdiction
Pennsylvania