Disclosing Overdraft Balances on ATMs

No, if the available balance is shown on an ATM receipt, but yes, if it is shown on the ATM screen. A new overdraft provision of Regulation DD, which becomes effective on July 1, 2006, requires banks to include several new disclosures in advertisements of overdraft protection programs. Under the new provision, an ATM receipt would not be viewed as an advertisement, but any disclosure of the overdraft limit or available balance on an ATM screen would be, for purposes of triggering the advertising disclosures. The required disclosures for ATM screens are truncated and only have to include the fees for paying overdrafts and the time period by which the customer must repay or cover the overdraft. The distinction between ATM screens and receipts does not apply for periodic statement disclosures, however. According to the new provision, a bank that discloses the customer's overdraft balance on either an ATM screen or an ATM receipt will be viewed as advertising the overdraft program and will be required to give additional disclosures on their periodic statements.