Answer:
There isn't adequate discussion of some of the finer points (your question is a fine example of something not addressed) in the regulation or the Official Staff Interpretations. The only guidance we have is that the bank should act on the revocation "as soon as reasonably practicable", and that the revocation rule "does not require the financial institution to waive or reverse any overdraft fees assessed on the consumer’s account prior to the institution’s implementation of the consumer’s revocation request."
The opt-in and revocation affect the underlying contract with your customer, namely, whether or not you'll be able to authorize transactions that would overdraw an account and charge a fee for those transaction when they do, in fact, overdraw that account. In my opinion, a revocation should not be retroactive and affect transactions previously approved under the opt-in and in the system. If the opt-in was valid at the time of the transaction that overdraws an account, you can charge an overdraft fee for that transaction.
First published on BankersOnline.com 9/13/10
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