Overdraft Fee Covered Under Reg E?

Answered by:

Question:

I am new to Reg. E and I had something come up that I am unsure how to address. If an unauthorized transaction does not clear an account yet charges an overdraft fee, is the fee covered under Regulation E?

Answer:

If an unauthorized EFT causes an overdraft (or other) fee in a consumer's account and the consumer makes a claim with her bank that the triggering EFT was not authorized, I believe that a strict reading of Regulation E's section 205.11 requires that the fee be refunded.

First published on BankersOnline.com 5/12/08