Learn More - Click Here!

Thread Options
#1374944 - 04/15/10 08:47 PM Reg E - Opt in Confusion.
GreenOne Offline
New Poster
Joined: Feb 2010
Posts: 9
Hello - I am in need of some clarification. We are a Bank that does not offer overdraft services and have a policy and practice of declining ATM and one time debits(yes its inevitable that a few will get by due to checks, preauth's etc.) The way that I read this reg is that because of our OD policy we do not need to comply with the requirements of 205.17 b 1 (i-iv). Am I understanding this correctly that we dont have to send notices as long as we dont charge a fee for atm and one time OD's? If we did send it, could we charge if the customer didn't opt in? .... The more I read the more confused I get, any help or input is greatly appreciated!

Return to Top
#1375039 - 04/16/10 02:57 AM Re: Reg E - Opt in Confusion. GreenOne
Island Dreaming Offline
100 Club
Joined: May 2009
Posts: 217
midwest
You are correct - in your circumstances, you are not required to send the opt-in notice. However, you cannot charge fees on overdrafts created by ATM and nonrecurring debit card transactions if the customer hasn't opted-in.
_________________________
CRCM

Return to Top
#1375190 - 04/16/10 02:27 PM Re: Reg E - Opt in Confusion. Island Dreaming
GreenOne Offline
New Poster
Joined: Feb 2010
Posts: 9
Thank you for the clarification ....My next step will be to see if it's feasible to send the letters. Thanks again!

Return to Top
#1399105 - 06/03/10 03:16 PM Re: Reg E - Opt in Confusion. GreenOne
ecrew,CRCM Offline
100 Club
ecrew,CRCM
Joined: Apr 2010
Posts: 204
Fl
Question: With the new Final ruling that came out, I'm understanding that all banks now need to offer the opt-in option. Is anyone else reading it that way??
_________________________
Nevermind tomorrow, TODAY is the day. -unknown



Return to Top
#1399160 - 06/03/10 04:01 PM Re: Reg E - Opt in Confusion. ecrew,CRCM
Doug Hendrickson Offline
Power Poster
Doug Hendrickson
Joined: Oct 2009
Posts: 3,927
If there is nothing in which to 'opt-in', then the option does not have to be offered. Our Overdraft Service states that we decline ATM/POS transactions if we are able to at the point of the transaction (if they would cause an overdraft); if one of these does 'slip through' (e.g., pre-auth for gas), we 'pay, no charge'.
_________________________
I hear and I forget. I see and I remember. I do and I understand.--Confucius

Return to Top
#1400229 - 06/07/10 03:20 PM Re: Reg E - Opt in Confusion. Doug Hendrickson
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,629
Cape Cod
Doug's absolutely right. To "have to" offer the opt-in, all of the following must apply:
  1. The depositor is an individual and the account is maintained for consumer (personal, family or household) purposes.
  2. There must be an ATM or debit card issued that is capable of accessing the account.
  3. The bank charges a fee for paying an ATM or one-time debit card transaction that overdraws the account.


I think that, as a practical matter, if a bank denies ATM or debit card authorization requests that would overdraw an account, it doesn't have an overdraft service that it can "sell" to a consumer in order to get an opt-in. Such a bank would therefore have to eliminate any OD fee for paying the occasional ATM or debit card transaction overdraft that sneaks in under the radar.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#1408793 - 06/28/10 03:18 PM Re: Reg E - Opt in Confusion. John Burnett
emandsully Offline
Junior Member
emandsully
Joined: Sep 2007
Posts: 26
If a bank does not have a program to "opt in" to, then do you have to place any language on the truth in savings or EFT disclosures?

Return to Top
#1409321 - 06/29/10 01:52 PM Re: Reg E - Opt in Confusion. emandsully
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,629
Cape Cod
No, but review your TIS disclosure language that describes the types of transactions that can trigger an overdraft fee. If it says that an ATM or debit card transaction could pull that trigger, you should change that wording. Note that the suggested wording sample in Comment 4(b)-5 in Supplement I to Regulation DD includes a reference to ATM withdrawals. That should be removed if you've followed the sample wording, since ATM withdrawals should not result in overdraft fees if your customers haven't opted into overdraft services covering card transactions under Regulation E's 205.17.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top

Moderator:  Lestie G