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#1379807 - 04/22/10 08:26 PM Re: Reg E Revisions Announced Reed
Wonder Why? Offline
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Spin
My understanding is if you revoke the card due to overdrafts for those who don't opt in after X# of overdrafts you would also have to revoke the card for opt-ins after the same number of overdrafts.

We are not permitted to treat opt-outs any differently than opt-ins except for the dollar limit at which we authorize transactions.

Sorry to be the bearer of bad tidings.

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#1380508 - 04/23/10 04:26 PM Re: Reg E Revisions Announced Wonder Why?
Wino Banker Offline
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Wino Banker
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Posts: 28
Regarding opt-outs: it appears Reg E does not require written confirmation when the customer opts-out. Written confirmation is only required upon opting-in.

Is this correct? Thanks!

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#1380565 - 04/23/10 04:59 PM Re: Reg E Revisions Announced Wino Banker
John Burnett Offline
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Originally Posted By: Wino Banker
Regarding opt-outs: it appears Reg E does not require written confirmation when the customer opts-out. Written confirmation is only required upon opting-in.

Is this correct? Thanks!


Correct. I imagine the fact that the next time the customer attempts to OD with the card it won't work will be sufficient notice. wink
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#1380635 - 04/23/10 05:32 PM Re: Reg E Revisions Announced John Burnett
Wino Banker Offline
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Wino Banker
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Thank you for your prompt response. It's always nice to validate my sometimes erratic thoughts with others.

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#1380709 - 04/23/10 06:18 PM Re: Reg E Revisions Announced John Burnett
Banker Gal Offline
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Banker Gal
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John,
We had attended a webinar in which we had in our notes that a confirmation number had to appear on the confirmation notice to the customer. Is this in the final ruling?
Thanks

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#1380831 - 04/23/10 07:15 PM Re: Reg E Revisions Announced Elwood P. Dowd
NB569 Offline
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Are there any banks out there that do not allow bounce protection for the first 30 days after account opening? We are trying to figure out exactly how we handle the opt-in in those situations. Can we have the customer complete the opt-in at account opening and then just wait the 30 days to send the confirmation or do we have to wait 30 days to even offer the opt-in?

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#1380967 - 04/23/10 08:16 PM Re: Reg E Revisions Announced Banker Gal
John Burnett Offline
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Originally Posted By: Banker Gal
John,
We had attended a webinar in which we had in our notes that a confirmation number had to appear on the confirmation notice to the customer. Is this in the final ruling?
Thanks


Huh? Nowhere in the regulation is there a mention of a "confirmation number." I know, because modern technology allows me to do a global search of the reg for that phrase. Methinks the webinar presenter thought that might be a good idea and somehow someone recorded that thought as a requirement. Just ain't so.
Last edited by John Burnett; 04/23/10 08:17 PM.
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#1381858 - 04/27/10 01:28 PM Re: Reg E Revisions Announced NB569
zitch70 Offline
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Joined: Apr 2001
Posts: 331
Edinburg, Texas
Originally Posted By: NB569
Are there any banks out there that do not allow bounce protection for the first 30 days after account opening? We are trying to figure out exactly how we handle the opt-in in those situations. Can we have the customer complete the opt-in at account opening and then just wait the 30 days to send the confirmation or do we have to wait 30 days to even offer the opt-in?


We do not allow new customers to participate in the overdraft program until 60 days after the account is open. They have to qualify.

but we will be having them opt in at account opening.

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#1381903 - 04/27/10 02:30 PM Re: Reg E Revisions Announced zitch70
NB569 Offline
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Joined: Dec 2006
Posts: 90
Originally Posted By: zitch70
Originally Posted By: NB569
Are there any banks out there that do not allow bounce protection for the first 30 days after account opening? We are trying to figure out exactly how we handle the opt-in in those situations. Can we have the customer complete the opt-in at account opening and then just wait the 30 days to send the confirmation or do we have to wait 30 days to even offer the opt-in?


We do not allow new customers to participate in the overdraft program until 60 days after the account is open. They have to qualify.

but we will be having them opt in at account opening.


So will you be giving out the confirmation at that time as well or will it be sent after the 60 days?

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#1381965 - 04/27/10 03:02 PM Re: Reg E Revisions Announced NB569
Valley Girl Offline
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Posts: 142
An illustration of a modified notice included language regarding returned item fees and merchant fees. For example, "If we do not authorize and pay an overdraft your transaction will be declined and/or returned to the merchant/payee. If declined, you may be required by the merchant/payee to provide an alternative form of payment at the time of transaction. If returned, we may charge you an insufficient funds fee of $X per item. In addition, you may incur additional return item fees imposed by the merchant/payee."

Would this language be appropriate since ATM/debit card transactions cannot be returned? I see that 205.17(d)(6) states:
(6) Permitted modifications and additional content. If applicable, the institution may modify the content required by § 205.17(d) to indicate that the consumer has the right to opt into, or opt out of, the payment of overdrafts under the institution’s overdraft service for other types of transactions, such as checks, ACH transactions, or automatic bill payments; to provide a means for the consumer to exercise this choice; and to disclose the associated returned item fee and that additional merchant fees may apply. The institution may also disclose the consumer’s right to revoke consent. For notices provided to consumers who have opened accounts prior to July 1, 2010, the financial institution may describe the institution’s overdraft service with respect to ATM and one- time debit card transactions with a statement such as “After August 15, 2010, we will not authorize and pay overdrafts for the following types of transactions unless you ask us to (see below).”

I interpret the above to mean that you would disclose returned item fees/merchant fees only if you modify the notice to allow consumers to opt into or opt out of payment of other items, such as checks, ACH, etc.

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#1382428 - 04/27/10 08:29 PM Re: Reg E Revisions Announced Valley Girl
John Burnett Offline
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VG - Agree. All that extra information may be included in an accompanying document, but it doesn't belong in the notice, IMO.

It looks to me that what they are trying to do is combine all of the "what ifs" for both card transactions and check/ACH transactions into one statement. That makes it harder to understand, IMO, and that's contrary to the goals of the regulation.
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#1382478 - 04/27/10 09:04 PM Re: Reg E Revisions Announced John Burnett
Valley Girl Offline
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Thanks John!!

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#1382492 - 04/27/10 09:23 PM Re: Reg E Revisions Announced NB569
zitch70 Offline
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Joined: Apr 2001
Posts: 331
Edinburg, Texas
Originally Posted By: NB569
Originally Posted By: zitch70
Originally Posted By: NB569
Are there any banks out there that do not allow bounce protection for the first 30 days after account opening? We are trying to figure out exactly how we handle the opt-in in those situations. Can we have the customer complete the opt-in at account opening and then just wait the 30 days to send the confirmation or do we have to wait 30 days to even offer the opt-in?


We do not allow new customers to participate in the overdraft program until 60 days after the account is open. They have to qualify.

but we will be having them opt in at account opening.


So will you be giving out the confirmation at that time as well or will it be sent after the 60 days?


We will be fliping the switch when the account is opened That way it is on the system.

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#1382701 - 04/28/10 02:09 PM Re: Reg E Revisions Announced Elwood P. Dowd
michaelj Offline
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when sending an opt in to customers, can't we just have a response needed on the bottom to opt in to the payment of ATM/POS if the notice is stating after Aug. 15 we will not authorize and pay overdrafts for ATM/POS. Is there really a need to have the Opt out choice???

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#1383374 - 04/29/10 12:05 AM Re: Reg E Revisions Announced michaelj
John Burnett Offline
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The opt-out line on the model form is not required by the regulation.
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#1383950 - 04/29/10 08:40 PM Re: Reg E Revisions Announced John Burnett
Valley Girl Offline
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Are there any advantages to sending the opt in form to existing customers before July 1? I worry that if the notices are sent early; some customers may express their desire not to opt in and then the bank would have to honor their choice at that time.

So if you send notices June 15 to existing customers; you may have a few that "opt out" as of June 17 and therefore the bank would have to stop assessing fees at that time. Whereas, if you wait until July 15 to send notices then you have more time to collect fees before they opt out.

In addition, your software would have to be ready to handle the changes at the time you start sending notices.

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#1384050 - 04/29/10 10:45 PM Re: Reg E Revisions Announced Elwood P. Dowd
Compliance Audit Offline
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If we currently have an overdraft protection plan that allows for the payment of ACH, checks AND ATM and one time debits, and the customer chooses to opt out for the payment of ACH and one time debit transactions do we still have to offer them the overdraft service to pay checks, ACH and reoccuring debit transactions or can we just cancel their overdraft protection plan for everything.

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#1384054 - 04/29/10 11:00 PM Re: Reg E Revisions Announced Compliance Audit
ahou Offline
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You can't treat the consumer differently because he does not opt in to ATM & one-time debit card trans.
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#1389240 - 05/11/10 07:08 PM Re: Reg E Revisions Announced Compliance Audit
Oviedo Boy Offline
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Tennessee
Adding on to what Compliance Audit asked, if our Overdraft Courtesy program currently covers checks, ACH, one-time and recurring debit card transactions, and a customer does not Opt In, are we permitted to prohibit the customer from using this Overdraft Courtesy for ATM and one-time debit transactions (if our system will allow that)?
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#1389243 - 05/11/10 07:12 PM Re: Reg E Revisions Announced Oviedo Boy
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see ahou's answer above.

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#1389297 - 05/11/10 07:56 PM Re: Reg E Revisions Announced
Oviedo Boy Offline
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Posts: 629
Tennessee
Ok...so, we would need to continue allowing debit card users to access their Overdraft Courtesy, but just not charge them for it, unless they Opted In?
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#1389306 - 05/11/10 08:02 PM Re: Reg E Revisions Announced Oviedo Boy
John Burnett Offline
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That's one option, but it won't be popular with management, will it? You need to force the issue and get the ability to selectively turn on coverage for ATM and one-time debit card transactions at the account level.
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#1389627 - 05/12/10 02:55 PM Re: Reg E Revisions Announced John Burnett
brainOverload Offline
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I have questions about the opt-in notice:

Management is wanting to incorporate our courtesy overdraft protection plan (where we pay overdrafts of any kind up to $500 and charge (except ATM and one-time debit card transactions unless they opt-in and is not an loc)). They want the notice to say under the What are the standard overdraft practices that come with my account? section: "We DO authorize and pay overdrafts up to $500 for the following types of transactions:" Is it ok to have that "up to $500" in there?

They also do not want an opt-out option at the bottom, just opt-in...is that ok?
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#1389941 - 05/12/10 08:32 PM Re: Reg E Revisions Announced brainOverload
Deena Offline
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I think it's fine to say "up to $500." It's also fine to not include the opt-out since that's not required.
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#1389957 - 05/12/10 08:41 PM Re: Reg E Revisions Announced brainOverload
brainOverload Offline
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DFW, Texas
Originally Posted By: brainOverload
I have questions about the opt-in notice:

Management is wanting to incorporate our courtesy overdraft protection plan (where we pay overdrafts of any kind up to $500 and charge (except ATM and one-time debit card transactions unless they opt-in and is not an loc)). They want the notice to say under the What are the standard overdraft practices that come with my account? section: "We DO authorize and pay overdrafts up to $500 for the following types of transactions:" Is it ok to have that "up to $500" in there?

They also do not want an opt-out option at the bottom, just opt-in...is that ok?

Sorry did not see John's post #1383374 with regard to the opt-out option. I looked, but looked right over it...

We decided after all to leave off the "up to $500".
Thanks
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