09/27/2010
Relative to charges for overdrafts caused by ATM or POS transactions, when a customer has opted out, when counting the consecutive days overdrawn, must we look at all ATM/POS transactions back to the reg implementation date or do we just exempt the ATM/POS transactions that caused the current overdraft?
09/13/2010
If a customer at a bank has the overdraft service, and has chosen to opt-out, we cannot charge, but if he chooses to opt-in, then we can. Is that correct? What if the customer doesn't have the overdraft service with us on his checking account? Can we charge with no overdraft service if he opts out? Can we charge with no overdraft service if he opts in?
09/13/2010
Under the opt-in requirements for Reg E, a customer opted-in a couple of weeks ago. Today is Monday, and there are currently pre-authorized transactions showing in memo post from purchases made over the weekend, but that have not yet posted to the customer's account. The customer called in today (Monday) and opted out. The pre-authorized transactions posted Tuesday or Wednesday after the customer opted out, but they were already pre-authorized Saturday or Sunday prior. These pre-authorized items now came in and overdrew the customer's account. Can we charge an overdraft fee, since we knew about them prior to the customer opting out? We have a screen print of them printed at the time the customer called in to opt out.
08/30/2010
If the customer claims that the price increased after the sale, does the customer have to provide proof of what the price should have been? If he doesn't, can we just decline due to lack of proof?
08/16/2010
Per the new Reg E overdraft opt-in rules, can we charge a customer an overdraft fee if he has opted in, but we have not yet sent the opt in confirmation letter?
07/26/2010
An article about Reg E and Overdraft fees in our local newspaper mentioned a change effective August 22, regarding a ban on charging inactivity fees. The article made it sound like this will affect savings and checking accounts. I have not read or heard anything else about this. Can you clear this up for me?
07/26/2010
I need some clarification on the new gift card rule, please. We took your webinar on this in May '04, and then we received the QandA following: “Can reload fees be charged?” Your answer was “While they may be imposed, they cannot be charged, under Section 205.20(d), unless there has been no activity with respect to the card during the one-year period before imposing the reload fee, and the reload fee can be the only service fee assessed during the calendar month in which it is imposed.” Our vendor sent me the following explanation: “They can have one service fee a month, so let's say you sell a card, and charge them an issuance fee in August. If they come in and reload still in August, you can’t charge them, but when they come in to reload in September, you can charge them one reload fee. The twelve month period is only for the inactivity fee”.
07/05/2010
We offer an Overdraft Privilege Product, and to date, have allowed bank employees to use it just as the non-employee customers. We're looking at drafting a new Employee Overdraft policy and would like to know if it would be discriminatory to not allow our employees to have the Overdraft Privilege Product? What do you hear from examiners on this issue?
06/28/2010
Relative to the new amendment regarding Regulation E and overdraft fees, I was wondering how the new regulation will affect recurring overdraft fees.
06/28/2010
About Regulation E, 205.17(b)(3) Same Account Terms, Conditions, and Features: I thought about actually closing the card if the customer does not opt-in or closing the card if he had not opted-in, and have overdrawn the account for the second time. We won’t charge them those two times, but after the second one hits, we will shut the card off and will need them to opt-in. I feel that if we do not promote our debit cards with any account, but the customer has the option to add a debit card to a checking account, that we should be able to only give debit cards to customers that have opted-in. The regulation states that the “institution may not vary the terms, conditions, or features of an account provided to a consumer who does not affirmatively consent to the payment of ATM or one-time debit card transactions.” I do not think that the ATM or debit card is a term, condition, or feature of any of our accounts that we offer. It is a benefit that the customer may receive if he opens a checking account with us, but there is no obligation to any of our accounts that a ATM or debit card has to be acquired. It also states that we cannot offer consumers a PIN-only card if they do not opt-in. It is they just cannot get an ATM or debit card added to the account if they do not opt-in, do you think that this would be a violation or do you have any suggestions on how we could go about this?