Sec. 230.11 Additional disclosure requirements for overdraft services.
(a) Disclosure of total fees on periodic statements (1) General. A depository
institution must separately disclose on each periodic statement, as applicable:
(i) The total dollar amount for all fees or charges imposed on the account for paying checks or other items when there are insufficient or unavailable funds and the account becomes overdrawn, using the term “Total Overdraft Fees”; and
(ii) The total dollar amount for all fees or charges imposed on the account for
returning items unpaid.
(2) Totals required. The disclosures required by paragraph (a)(1) of this section
must be provided for the statement period and for the calendar year-to-date.
(3) Format requirements. The aggregate fee disclosures required by paragraph (a)
of this section must be disclosed in close proximity to fees identified under § 230.6(a)(3),
using a format substantially similar to Sample Form B-10 in appendix B.
(b) Advertising disclosures for overdraft services.
(1) Disclosures. Except as provided in paragraphs (b)(2),(b)(3), and (b)(4) of this
section, any advertisement promoting the payment of overdrafts shall disclose in a clear and
conspicuous manner:
(i) The fee or fees for the payment of each overdraft;
(ii) The categories of transactions for which a fee for paying an overdraft may be
imposed;
(iii) The time period by which the consumer must repay or cover any overdraft; and
(iv) The circumstances under which the institution will not pay an overdraft.
(2) Communications about the payment of overdrafts not subject to additional
advertising disclosures. Paragraph (b)(1) of this section does not apply to:
(i) An advertisement promoting a service where the institution’s payment of overdrafts
will be agreed upon in writing and subject to the Board’s Regulation Z (12 CFR part 226);
(ii) A communication by an institution about the payment of overdrafts in response to a
consumer-initiated inquiry about deposit accounts or overdrafts. Providing information about the
payment of overdrafts in response to a balance inquiry made through an automated system, such
as a telephone response machine, ATM, or an institution’s Internet site, is not a response to a
consumer-initiated inquiry for purposes of this paragraph;
(iii) An advertisement made through broadcast or electronic media, such as television or
radio;
(iv) An advertisement made on outdoor media, such as billboards;
(v) An ATM receipt;
(vi) An in-person discussion with a consumer;
(vii) Disclosures required by federal or other applicable law;
(viii) Information included on a periodic statement or a notice informing a consumer
about a specific overdrawn item or the amount the account is overdrawn;
(ix) A term in a deposit account agreement discussing the institution’s right to pay
overdrafts;
(x) a notice provided to a consumer, such as at an ATM, that completing a
requested transaction may trigger a fee for overdrawing an account, or a general notice
that items overdrawing an account may trigger a fee;
(xi) informational or educational materials concerning the payment of overdrafts
if the materials do not specifically describe the institution’s overdraft service; or
(xii) an opt-out or opt-in notice regarding the institution’s payment of overdrafts
or provision of discretionary overdraft services.
(3) Exception for ATM screens and telephone response machines. The disclosures
described in paragraphs (b)(1)(ii) and (b)(1)(iv) of this section are not required in connection
with any advertisement made on an ATM screen or using a telephone response machine.
(4) Exception for indoor signs. Paragraph (b)(1) of this section does not apply to
advertisements for the payment of overdrafts on indoor signs as described by § 230.8(e)(2) of
this part, provided that the sign contains a clear and conspicuous statement that fees may apply
and that consumers should contact an employee for further information about applicable fees and
terms. For purposes of this paragraph (b)(4), an indoor sign does not include an ATM screen.
(c) Disclosure of account balances. If an institution discloses balance
information to a consumer through an automated system, the balance may not include
additional amounts that the institution may provide to cover an item when there are
insufficient or unavailable funds in the consumer’s account, whether under a service
provided in its discretion, a service subject to the Board’s Regulation Z (12 CFR part
226), or a service to transfer funds from another account of the consumer. The institution
may, at its option, disclose additional account balances that include such additional
amounts, if the institution prominently states that any such balance includes such
additional amounts and, if applicable, that additional amounts are not available for all
transactions.
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