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?
10/11/2010
A customer opts in for overdrafts (per Reg E), and then changes his mind and opts out. Must the bank send a letter acknowledging his opting out? Previously, we had sent a letter acknowledging his opting in.
09/20/2010
Which regulation requires banks to define "excessive overdrafts and counsel customers that have excessive ODs"?
09/20/2010
When we close an existing customer's deposit account for excessive overdrafts, do we need to send an adverse action notice under FCRA? If so, where can I find this requirement in the Act?
08/23/2010
Since checks are not subject to the new Opt In/Out rules, what about a check that becomes a one-time ACH because of Check 21? If a customer has $50 in a checking and $1000 in savings, if he opts out (Reg E), will debit card usage be denied if the purchase is over $50?
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?
03/22/2010
How should hold notices read with the disappearance of non-local checks? Are there any sample notices?
03/22/2010
Does Reg O govern the interest rates one can provide on deposit (DDA and SAV and CD) accounts? Other than related to overdrafts, does Reg O impact deposit accounts in any way?
01/18/2010
The commentary on the Reg DD changes seems a bit unclear with regard to the opt-in and opt-out requirements for banks that do not utilize an overdraft program. Is a bank that does not have an overdraft program, but does pay overdrafts on a discretionary basis, required to allow customers to opt-out of having their overdrafts paid through whatever means?