A change in terms notice is required when an institution increases consumer liability. Which of the following options is correct?

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A change in terms notice is essential when consumer liability increases because it ensures transparency and keeps consumers informed about any modifications that may affect their financial responsibility. When an institution increases consumer liability, it can significantly impact the consumer's financial obligations and risk exposure. Therefore, it is imperative that the consumer is notified of this change so that they can make informed decisions and take appropriate measures regarding their account and usage of services.

In contrast, certain actions, such as adding new Electronic Funds Transfer (EFT) services, may not necessarily increase consumer liability, as they could potentially provide additional options without raising risks. Lowering fees typically benefits consumers and does not constitute an increase in liability. Finally, eliminating limitations on the frequency of transfers might enhance convenience for the consumer but does not inherently increase their liability, as it doesn't alter their financial responsibility in a negative way.

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