So I just want to run this by everyone and see if I am on the right track:

On 2/17/2021 we gave a customer access to our Overdraft Privilege service. At this time we had them sign a Reg E opt in/out form and they chose to opt in to having overdrafts on ATM & one time POS transactions paid.

On 3/26/2021 we removed Overdraft Privilege due to account issues. At this time, we did not change the opt in option to Reg E on our Core system, however, because they were not currently in the Overdraft program, it would not pay overdrafts on ATM and POS transactions.

On 7/10/2021 we gave the customer access to Overdraft Privilege again. This reactivated the Reg E opt-in option on their account. However, the BM did not get a new Reg E form signed by the customer.

I say that since we removed Overdraft Privilege in March, then that voided the Reg E form that was originally signed in February and we should have had the customer sign a brand new Reg E form in July stating whether they wanted to opt in or out of OD on ATM & POS transactions.

My thinking now is - since we did not get this form, then we should not have been paying OD's on ATM & POS transactions and we really shouldn't have been charging the OD fee. I believe we need to refund these fees to the customer as a way of saying, this was our mistake and we are trying to make it right, in the case an examiner finds it. I have not ran this by my supervisor yet, I just wanted to see if I am on the right track here. The sum needing refunded would be a large amount - $1440.00. This would be any fees charged since 7/10/2021.

I'm thinking we probably should not have given the customer access to ODP again, but that's another issue.

Thanks for any thoughts!!

When the institution revoked access to the Program on 3/26/21, it also revoked the opt-in and I agree it should have obtained a new opt-in when reinstating access to the program on 7/10/21.

Since you did not change the opt-in status on 3/26/21, did your system charge for any ATM/Debit card transactions that "slipped through?" For example, if I authorize a gas purchase on my card, the terminal authorizes $1.00 but allows me to pump $100.00 worth of gas. If I have less than $100.00 in my account, I would have an overdraft when the charge posted. You would also owe your customer for any fees charged on one-time ATM/debit card transactions between 3/26/21 and 7/10/21.

And someone racking up overdrafts for just the ATM&POS transactions at a clip of $6,000 on an annual basis (like you indicated) really borderlines on abuse of the customer. That ODP needs to be revoked again or someone is going to have to explain this to the regulators as why it is being allowed. They are now typically asking for a listing of customers and total OD charges..

Thank you Brian. I will go back and check the account from between 3/26/21 and 7/10/21! I should have thought of this.

Randy - I totally agree with you and will be bringing this up to the BM and branch admin.

Thank you both!