Overdraft Transfers and ACH Transactions

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Question:

I have been setting up overdraft transfers for funds trying to pull from savings for ACH transactions. They have funds in their checking, and when I set it up and then repost occurs, the funds are transferred from checking along with a transfer fee. Do you know if I am breaking any rules? Normally I would be transferring funds manually. Or should we just be returning the items.

Answer:

This is all handled under what ever contractual agreement you have with the customer. If you don't have an agreement, you shouldn't be doing any of it. If you have an agreement, refer to the agreement. If you are charging undisclosed fees, you have a UDAAP situation.