05/11/2009
The new amendment to Reg DD requires disclosures of overdraft charges. Our bank does charge overdraft fees, but we do not offer any type of overdraft protection coverage. Does this new amendment still apply to us?
04/06/2009
We currently offer overdraft protection via a personal line of credit. Our loan policy states that personal unsecured loans in excess of $5,000 shall be documented with an annual personal financial statement. However, our application and initial disclosure do not indicate this and we have not asked for financial statements for these lines of credit in the past. Are we required to provide advance notice to the customer if we want to now implement this process?
01/26/2009
The bank is thinking about conducting a mass mailing of debit cards to all customers who do not currently have a card. I understand that this may be done so long as we follow Section 205.5 of Reg E. The question is, can we exclude customers age 70 and over from the mailing? All of our accounts have overdraft coverage. I am concerned that due to that fact, the regulators might construe the coverage to be incidental credit, which could potentially mean an age discrimination issue per ECOA. I know that the bank can offer a product that benefits persons over age 62. Do you think excluding those over 70 (or 62) would be a benefit or a detriment? Do you think we can exclude the customers over age 70? Do you think we could use Regulation B's definition of "open-end credit" to get around the "incidental credit" issue?
11/17/2008
Does the bank have to provide a thirty day notice to the consumer if they are closing an overdraft protection line?
03/10/2008
Can a corporation or business use CML LOC as overdraft protection?
12/10/2007
I heard that Rep. Carolyn Maloney of NY has introduced a bill (HR 946) that would make big changes to overdraft plans and will put significant restrictions on overdraft plans as well. Does anyone know the status of the bill and what it entails?
12/03/2007
We would like to allow overdraft protection through a home equity line of credit, but want to make sure that any debit card does not become a credit card through this process. Can you point me to some specific guidance on this?
08/13/2007
Before we open a new account, we use a service provider that checks to see if the potential customer has any closed for cause accounts from other institutions and vendors with outstanding balances. If we decline to open a transaction (checking) account based on this information, do we need to give an FCRA adverse action notice? We do not offer an overdraft protection program, but we do pay some customers into overdraft and charge them an overdraft fee per item.
07/30/2007
Under the requirements of the new rules for overdraft protection programs under Reg DD, there is an exemption for the historical information on overdraft charges for banks being purchased by another institution. If both the existing bank and the bank being purchased are required to disclose the annual history of charges due to advertising the overdraft program, does this exemption still apply?
04/16/2007
Is it necessary to notify a member (customer) each time they use bounce protection and get a fee, or can we notify them at the end of the month on their statement?