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Latest Operations - Overdrafts Topics

Using a third-party collector for overdrawn account

03/02/2025

My question is related to checking accounts that go into the negative and are facing potential charge off. I am looking to see what the rules and regulations are in regard to sending negative checking accounts (depending on the amount) to a third-party collector. Is this allowed? I cannot find anything anywhere stating that it is allowed.

ACH debits wipe out account of deceased

09/08/2024

We have an individual account that has been receiving recurring ACH debits monthly. The account owner died 6 years ago. The bank just found out about the death only days ago. No personal representatives have come forward or are known to contact. The most recent ACH debit was paid and overdrew the account. The account has now been overdrawn for 45 days. Can we return the ACH debits that occurred after the date of death? Although the debits have been occurring for years, the bank just became aware of the death of the account owner.

CFPB's proposals to cut big banks' OD fees

07/28/2024

When is the CFPB likely to issue a final regulation making banks over $10 billion in assets cut their overdraft fees back to a breakeven amount or start treating overdrafts as extensions of open-end credit subject to Regulation Z?

APSN ATM/POS transactions and overdraft fees

07/21/2024

Our institution has chosen not to charge NSF fees on ANY ATM/debit card transactions whether they are one time or recurring. Having said that, if we are in an APSN situation at end of day and the account is now overdrawn, we DO charge an Overdraft Fee (even if the only item causing the overdrawn balance is the ATM/Debit card transaction). Would this be perceived at UDAP/UDAAP? Additionally, both NSF fees and OD fees are the same amount.

OD Fees, Authorized Positive

04/23/2023

When reading the Consumer Financial Protection Circular 2022-06, we are trying to understand if banks are not allowed to charge an overdraft fee on a transaction that was authorized positive and settled negative, regardless if they had OD privilege or not? In the Circular 2022-06, it states that overdraft fees can be deemed unfair acts or practices even when the financial institution complies with federal regulations including Regs Z and E.

Reporting LLCs with Overdrafts

04/09/2023

When reporting an overdrafted account to Chex Systems , if it is a sole owner is an LLC business account do we report it with the TIN or the owners Social Security Number?

Redisclosures for Representments

02/12/2023

We have changed our verbiage on our fee schedule to match the verbiage on our important terms and conditions regarding representments of checks. I was going to send out a letter with the updated fee schedule, but due to cost I would like to include the separate letter in the statement envelope. Does anyone see an issue with this?

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Club Accounts Ownership - Louisiana

05/04/2025

I have seen multiple banks offer Christmas Club accounts, but only allow one owner on the account. When i used to open accounts this was the only way were taught how to open them. At my new instituton they allow multiple owner(s)/signer(s) on these accounts. Is there a specific reason the bank should only allow one owner per account?

Invalid ID on CTR

05/04/2025

We filed over 200 CTRs on a business and the form of identification we used for the transactor is a TVDL (a Temporary Vistor's Driver's License for non-citizens of the United States who have been granted temporary, legal entry into this country and are temporarily residing in the State of Illinois and ineligible for a Social Security number). According to FinCEN you cannot take a TVDL as identification. However, they do not indicate if the TVDL restriction is on a transactor. I created a ticket with FinCEN asking if I needed to amend the CTRs when the improper identification was used for a transactor. They sent the XML Schema 2.0 User Guide. The guide is not very helpful because the transmission was not rejected or filed with warnings. Has anyone had this happen? If so, did you amend the CTR based on the identification of the transactor? Any help would be very appreciated.

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