Financial Institution Employee Overdraft Privileges

Answered by:

Question:

If the executive officer is joint owner of an account which is overdrawn and it is bank policy not to charge bank employees overdraft charges, under Reg O is it appropriate not to charge the executive officer?

Answer:

Executive officers should be paying the same overdraft fees as the rest of your customers, and should not be doing so very often at all. Except for inadvertent (how does one prove this) overdrafts of less than $1,000 cured within 5 days, an EO may not overdraw his/her account. Individual or joint.

If the EO has a joint account holder who slips up too often, the EO would be well advised to get rid of the joint account and maintain separate checkbooks.

First published on BankersOnline.com 1/20/03