Joint Overdraft Guidance: Extension Past 60 Days?

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Question:

I understand the Joint Overdraft Guidance states that overdrawn accounts should be charged off after 60 days. Is there anything that would allow for an extension past the 60 day mark? (i.e. a fraud investigation, pending transactions, approval from upper management, etc.)

Answer:

Well, you can give it a shot, but I have never seen either a regulator or an accounting firm allow it as it could be considered an understatement of charge offs and an overstatement of your loan loss reserves since it goes against direct guidance from the regulators.