04/01/2013
A customer's savings account is set up to protect his checking via overdraft protection and he has violated Reg D for three consecutive months and the bank has removed the overdraft capability, following all requirements of course. When can he or can he request overdraft protection from his savings to his checking again?
01/02/2012
In reviewing the new Dodd-Frank rules regarding Deposit-Related Consumer Credit Products, (more specifically Overdraft Protection Programs) it appears that banks must now have two Opt-In/Out forms for the customer, one for Reg E requirement and one for Checks/ ACH. We have been asking some other banks to see if this is their interpretation and we have been getting a wide range of responses. Can you clarify this for us?
03/14/2011
Our bank has an account overdraft protection program. Currently, we have customers that previously qualified for this service that did not opt in to the new Reg E requirement. Can we revoke the customer's overdraft protection plan?
11/01/2010
My bank offers a "second chance" checking account to consumers who have had accounts closed at other banks with charge-offs reported to a credit reporting agency. The accounts are free of maintenance and activity fees, and are covered by our overdraft payment program after sixty days if the consumer opts into it. The overdraft fees for the second chance account are $5 higher than for other checking account customers. If we don't mention our overdraft payment program in our marketing materials for these accounts, can we refer to the accounts as free?
10/18/2010
When we have a customer who exceeds the transaction limitations on a savings account due to online transfers, we restrict him from online banking. If he also has a sweep set up for overdraft protection, we do not remove the sweep, since this is not what put him over the transaction limit. Is this a violation of the Reg? Should we restrict him from online banking as well as remove the overdraft protection sweep?
09/27/2010
A customer has opted in to the overdraft protection and then the bank decided to suspend his protection because he did't bring his account positive. Is there a disclosure the bank needs to send to the customer letting him know that his overdraft protection has been suspended? If the bank wants to reinstate the overdraft protection after the account is brought current, does the customer need to sign the opt-in form again?
09/20/2010
Which regulation requires banks to define "excessive overdrafts and counsel customers that have excessive ODs"?
09/13/2010
Does Reg O require that lines of credit given to Reg O officers include a demand feature?
07/12/2010
We do a lot of targeted marketing in our bank. Our operations and marketing departments have approached our compliance team with a proposal to market our overdraft service to customers who don't yet have the service, but have had checks returned for insufficient funds in the last six months. Currently, this service allows qualified customers' accounts to go overdrawn by from $200 to $300 provided they cover their overdrafts within fourteen days. We would market it in two layers, with an option for customers to accept basic coverage for checks and ACH items only, and another to accept coverage for checks, ACH and ATM/debit card transactions. We will include all the compliance disclosure, opt-in and confirmation requirements for card transactions required by Regulation E. Are there any compliance concerns related to targeting this marketing to that group of customers?
06/29/2009
I see a lot of guru Q and A's regarding directors and overdrafts and overdraft fees. My bank's policy is to exempt all directors from our overdraft protection program, so that we don't have to worry about Reg O issues on that score, but my question has to do with a plain old ordinary non-sufficient funds fee. Is it a Reg O violation to refund an NSF fee?