Is everyone generally using the model opt-in letter provided by the Fed, or are you customizing your letters?

Yes, we're using the model form language. We customized only to reflect our fees and we removed the "I do not want..." option, since we felt there was no need for an opt-out.

To add - we have created a separate cover letter to go along with the opt-in form. The letter was our way (or our marketing department's way ;)) to "soften up" the language. We also created a FAQ document for customers and a brochure that explains the "choice" and what it means to be opted in v. not opted in.

Our focus is on educating our customers so that they have enough information to make a decision that's right for them and their accounts.

One reminder for you who will include a cover letter and/or FAQ that further explains your customer's options --

Those accompanying documents are about 99% certain to be considered "promoting the payment of overdrafts." That triggers the special requirement for four specific pieces of information about your overdraft service under Regulation DD, §230.11(b).

We, like Nessie, are going with the model form, and a cover letter. We made sure we have rhe required info in the cover letter.

We are using the model form as well with a simple cover letter that reads: "Due to recent regulatory changes effective July 1, 2010, we are enclosing the following notice. Please contact ABC Bank Customer Service Department at (123) 456-7890 with any questions you may have. Your decision takes effect August 15, 2010."

John, I know this may be splitting hairs, but if the FAQs are not being sent to "prospective customers" and they are not promoting another account to an existing customer, do you think they meet the definition of "advertisement" in Reg DD? I agree that the FAQs promote the payment of overdrafts, but I'm not sure they're an "advertisement promoting the payment of overdrafts" that would trigger the disclosures under 230.11.

While I agree with Deena, out of an excess of caution, I am advising our bank to include the 4 disclosures.