Changing overdraft coverage

Answered by:

Question:

If the amount of the overdraft coverage changes according to the pattern of deposits and the customer is not informed about the change, can that be consider a UDAAP issue?

Answer:

I would be concerned about how a customer can make informed decisions regarding their account if they don’t know the amount of the coverage. I would recommend you talk to your regulator about not providing notification.
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Overdrafts – Current Developments