Reg E Overdraft Changes - Early Compliance

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Question:

In a webinar on Reg E changes to overdraft, the presenter stated that if we comply early and start the opt in process, that we must also cease to charge fees on one time debit and ATM transactions. Is this correct?

Answer:

Let's assume you start notifying new customers and soliciting opt-ins from them on 6/1/10. For those new customers, you can't charge OD fees for ATM and debit card transactions unless you get an opt-in and provide confirmation.

If also on 6/1, you set the group of existing customers as of that date, you can continue charging them through 8/14, and you can provide the overdraft service/opt-in disclosure anytime between 6/1 and 8/14. For this group, you can't assess an overdraft fee on or after 8/15 without an opt-in and confirmation. If any of the existing customers as of 6/1 informs you prior to 8/15 he/she doesn't want card overdraft service, you must stop assessing the overdraft fees promptly, and not wait until 8/15. All of which strongly suggests that you have your program and/or procedures enhancements for managing the opt-in and revocation requirements in place before you start pulling an early trigger on compliance.

First published on BankersOnline.com 2/15/10