Disclosures Required with ODP Product

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Question:

If my bank offers overdraft protection in the form of a savings or money market as a back up account for the primary checking, what, if any, additional disclosures are required? We obviously provide Truth in Savings, account agreements, Reg E, etc.

Answer:

Unless this is a NOW or ATS account (which comes with limited ownership) you'll have limited transaction capabilities. These limitations or ownership restrictions should be disclosed.

[Editors Note:As of 7/2/09, the separate limit of three per month for checks, POS debit card transactions, etc., has been eliminated, and those transactions are now only subject to the 6/month limit that applies to other restricted transfers and withdrawals.]

First published on BankersOnline.com 2/23/04