A Requirement to Mail Reg E Opt-in?

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Question:

Are we required to mail the Reg E Opt-in to existing customers if the bank chooses not to charge overdraft fees on the ATM or one-time debit card overdrafts? Is it mandatory?

Answer:

If your bank has a policy and practice of not authorizing and paying ATM and one-time debit card transactions, which it believes, at the time authorizations for the transactions are requested, would overdraw the account, you need not send the notice or obtain an opt-in. However, because of the lack of an opt-in, you would not be permitted to assess an overdraft fee for any covered card transaction, even if forced to pay the transaction, regardless of the reason the transaction is received. The key requirement you must meet if you do not provide an opt-in disclosure is that you will not assess an overdraft fee of any kind as a result of paying an ATM or one-time debit card transaction.

First published on BankersOnline.com 5/17/10