07/04/2005
We are in the process of implementing an automated overdraft protection service. As a courtesy, the Fair Lending folks at the FDIC spoke with us regarding "guidance" on this service. Specifically, they told us that if we have any checking products that are age-based (such as 50 years plus checking) that has a waived service charge that we are discriminating against all other accounts holders that have an account that is not aged base and has a service charge or a minimum balance requirement. The violation would fall under ECOA. We were told the only way that we would be in "guidance" would be if the aged based account was 62 years plus. We asked them to site specifically "where" in the Reg B or in the joint guidance that this is stated. Apparently this is very broad guidance. Has anyone else come up against this situation or been written-up in an exam for this? Any advise as to our next move?
05/23/2005
We would like to offer an overdraft protection product for our commercial accounts. What compliance issues will be involved? We have a consumer product already with the proper disclosures.
05/01/2005
I received a press release the other day that said that because banks face increased government regulation, more hiring is needed to keep up with the workload.
04/01/2005
In recent years, we have coined a variety of terms for high-cost, short term loans. The names can vary from late payment fees through overdraft protection to payday lending.
04/01/2005
There is almost no area of banking where the future and present responsibilities change as often and as drastically as the front line.
04/01/2005
The federal financial institution regulatory agencies recently issued final guidance on a product many institutions offer under the name "bounced-check protection" or "overdraft protection." These
03/01/2005
Since its introduction several years ago, the regulatory agencies have expressed serious concerns about bounce protection programs which, unlike traditional overdraft programs, can lead consumers i
11/29/2004
What is meant by ATS accounts? Is there a definition?
09/20/2004
Our bank offers a personal line of credit that also acts as overdraft protection. Advances from the line are in a minimum of $50. There is no charge for the advance to cover an overdraft or overdraft fee from the DDA. We are sending out a notice to customers for each and every advance. In some cases this may be 3 or 4 a week. Is this necessary, as the monthly statement for both the PLOC and DDA would show the transfers? What regulations in particular would cover this?
09/06/2004
Currently we are in the process of updating various agreement forms. One of the forms regarding "Automatic Transfer Authorization" that we are using has a statement concerning making a payment for a loan from the customer's account with an overdraft protection LOC attached to it. We indicate that the bank will not take into account any LOC when considering if there are adequate funds to complete the transfer or make the payment as agreed to. My question is: Do we have to include such a statement? Is there any regulation, law, or UCC article that would govern this?