Extending repeatedly overdrawn status

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Question:

If a depositor who was repeatedly overdrawn continues to be repeatedly overdrawn during the six months they are subject to the repeated overdrafts exception hold rule, can we extend their repeatedly overdrawn status?

Answer:

Yes. You can provide the appropriate notice and extend the repeatedly overdrawn status six months from the date of the most recent overdraft. Of course, you could also decide to close the account, in which case you’ll send a different sort of notice.

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Learn more about John Burnett’s Regulation CC: Funds Availability (Deposits and Holds) webinar.