What methods are banks providing customers to Opt In?

In our letter to our customers, we are providing only an 800 number for convenience; website for the opt in form to fax in or mail in; or visit a local branch; Email we ruled out because we state we will never ask you for your account number in an email. The opt in form will not be included in the letter being mailed out to the customers.

How many banks will be utilizing the opt in form in their letter to the customer.

The regulation states that the opt in notice must be "segregated" from all other disclosures. For existing customers can we include in our statement mailings as a stuffer if it is a separate document? One side of the statement stuffer will be a letter explaining the new requirement the other side will be the opt in notice itself.

My understanding is that the opt-in form or notice is required to be provided to new and existing consumers. The opt-in notice is what contains the details of your overdraft practices and fees. As Buckeye stated, the notice must be segreated from all other disclosures.

If you want to notify customers by including the opt-in notice/disclosure as a statement stuffer, that's fine. It doesn't have to be in a separate mailing. For the customers who actually look at their statements, I'd suggest including a notice on the statement encouraging them to carefully read the disclosure.

If you include a letter of explanation, be careful. It is likely to qualify as an advertisement that "promotes the payment of overdrafts" under Regulation DD, § 230.11(b), and it will have to include the information required by that section. The notice/disclosure itself, because it is a required disclosure under §205.17 of Regulation E, does not trigger those advertising rules.

[quote=JoAnne]My understanding is that the opt-in form or notice is required to be provided to new and existing consumers. The opt-in notice is what contains the details of your overdraft practices and fees. As Buckeye stated, the notice must be segreated from all other disclosures.
The commentary for 12 CFR 205.17 shows that for methods of phone and electronic means a form is not required.

4. Reasonable opportunity to provide affirmative consent. A financial institution provides a consumer with a reasonable opportunity to provide affirmative consent when, among other things, it provides reasonable methods by which the consumer may affirmatively consent. A financial institution provides such reasonable methods, if—
i. By mail. The institution provides a form for the consumer to fill out and mail to affirmatively consent to the service.
ii. By telephone. The institution provides a readily-available telephone line that consumers may call to provide affirmative consent.
iii. By electronic means. The institution provides an electronic means for the consumer to affirmatively consent. For example, the institution could provide a form that can be accessed and processed at its Web site, where the consumer may click on a check box to provide consent and confirm that choice by clicking on a button that affirms the consumer's consent.
iv. In person. The institution provides a form for the consumer to complete and present at a branch or office to affirmatively consent to the service.

I guess I should further explain our approach. Our letter is the opt in form's body less the check box and signature. There are two options in the letter: 1)call 800 number and 2) visit our website. Side one of the letter is English, side two is Spanish. Should a customer visit a branch for an explanation, the branch will have a form for their choice and signature.

So, the customer cannot opt-in by checking the appropriate box, signing the form, and mailing it back?

While omitting the check part of the notice below the dotted line and revising the last paragraph is likely to cause examiners to scratch their heads, I think they will eventually figure it out.
Banks are not required to offer all four choices.

I do not see a problem with it, but (in response to your original question) do not think it will be a common practice.