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#1121693 - 02/03/09 03:06 PM Reg DD- ATM and account balances
Comply 101 Offline
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Comply 101
Joined: Jul 2001
Posts: 708
According to the final Reg DD rule effective next year, we cannot include the overdraft balance on a balance inquiry at ATM, phone, Internet etc unless we provide information describing the balance as including an overdraft plan. Our bank doesn't currently provide the overdraft amount on balance inquiries, however, it does provide two separate balances after an ATM withdrawal, with one balance including the overdraft funds. The reg only refers to balance inquiries, but would we need to inform the customer on an ATM withdrawal or transfer that o/d funds are included in that balance?
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#1122358 - 02/04/09 03:21 AM Re: Reg DD- ATM and account balances Comply 101
John Burnett Offline
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John Burnett
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Cape Cod
You must present a balance that only includes the customer's funds. You may include a separate balance that reflects the use of other funds (OD line of credit, transfer from another account, OD courtesy amount) if you clearly state the balance includes those other funds.

The regulation does not distinguish between balances provided in response to a balance inquiry and balances provided without a consumer's request on a transaction receipt. Comment #3 to section 230.11(c) alludes to systems through which a consumer may request a balance: "The balance disclosure requirement in section 230.11(c) applies to any automated system through which the consumer requests a balance, ...." That could be interpreted to say that the balances on receipts that are not provided in response to any inquiry would not be subject to the rule.

That might provide you with a technical "out," but I do think it's one that will be subject to question and potential criticism because it provides information that the regulators want suppressed altogether or provided with specific explanatory language.
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#1122643 - 02/04/09 04:25 PM Re: Reg DD- ATM and account balances John Burnett
Comply 101 Offline
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Comply 101
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Posts: 708
Thanks John. We will definitely take the conservative approach.
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