Our bank, as with many others, offers discretionary O/D protection to some customers. That is, we will pay NSF items for certain customers up to a certain amount, depending on the customer's relationship (this O/D limit is not an approved line of credit).
Previously, we would list the O/D amount on the customer's ATM receipt if they had a discretionary limit. This limit would be included in their available balance. So, if the customer had an available balance of $300 and a discretionary O/D limit of $500, it would read as though the customer had an available balance of $800. We recently stopped listing the O/D limit because of possible violations of Regulation D.
Can anyone tell me if this is a violation of Reg. D or, if not, a violation of another regulation? Thanks!

I'm not sure how this relates to Reg D, but if you were providing this on the ATM receipt on or after July 1, 2006, then you were advertising an ODP Program and have to follow the statement disclosure requirements in Reg DD for 2 years.

I wasn't quite sure how it related to Reg. D, either. However, our core service provider, for some reason, believed that including the ODP balance was in violation of the reg., and so they pulled it off.

As noted, it's Regulation DD, not D, that your former practice ran afoul of. Can you document when you stopped including the OD limit in the ATM disclosed balance? As noted by MN Banker, if you were still doing it on or after 7/1/06 (10/1/06 if you are at a credit union), you have to comply with section 230.11(a) of Regulation DD for two years after you stopped inflating the ATM disclosed balance.