{"id":1864,"date":"2019-09-26T18:56:19","date_gmt":"2019-09-26T18:56:19","guid":{"rendered":"https:\/\/albanknews.com\/?p=1864"},"modified":"2019-09-26T18:56:19","modified_gmt":"2019-09-26T18:56:19","slug":"compliance-qa-overdraft-protection","status":"publish","type":"post","link":"https:\/\/albanknews.com\/?p=1864","title":{"rendered":"Compliance Q&A: Overdraft Protection"},"content":{"rendered":"

Question:<\/strong><\/p>\n

I\u2019m being told we can opt people in for overdraft protection. Is that true?<\/p>\n

\u00a0<\/strong><\/p>\n

Answer:<\/strong><\/p>\n

Reg. E sets out the requirements for providing customers with overdraft services for paying an ATM or a one-time debit card transaction. Under the Reg. E requirements, before the bank can assess an overdraft fee for paying an ATM or one-time debit card transaction, the customer must affirmatively consent to such coverage. This does not mean that the bank cannot pay the overdraft item, it merely means that without the customer\u2019s affirmative consent, the bank may not assess an overdraft fee for paying those items.<\/p>\n

(b) Opt-in requirement<\/em><\/strong> \u2014<\/em><\/p>\n

(1) General.<\/em><\/strong> Except as provided under paragraph (c) of this section, a financial institution holding a consumer’s account shall not assess a fee or charge on a consumer’s account for paying an ATM or one-time debit card transaction pursuant to the institution’s overdraft service, unless the institution:<\/em><\/p>\n

(iii)<\/em><\/strong> Obtains the consumer’s affirmative consent, or opt-in, to the institution’s payment of ATM or one-time debit card transactions; and<\/em><\/p>\n