We didn't offer the opt-in last July but would like to now. I have conflicting references telling me that we could have a UDAP violation for offering this now and others telling me it's no problem. The Opt-in wasn't a 1-time offering so that doesn't make sense. Has anyone else offered the Opt-in after the initially offering? We don't have a formal OD program - just ad-hoc.

If you don't have a formal OD program, are you approving/authorizing ATM and one-time POS transactions into overdraft when no funds are available (prior to posting to the account)? If not, there is nothing for the customer to opt into except a fee.

There is no UDAP issue to offer at a later date than last July. However, make sure that if you didn't offer an opt-in, you also did not charge for any ODs caused by ATM and one-time POS transactions. If your system declines POA and ATM transactions when funds are not available, the customer would be opting into a service you don't offer. The potential UDAP I can see would be to solicit an opt-in for a service you don't offer.

We just have an ad-hoc overdraft program as well. We are getting ready to offer the opt-in. Before, we did not approve/authorize transactions if no funds were available. Going forward, we will authorize/approve up to the certain dollar amount just on ATM and one-time debit card transactions if they opt-in.

Going forward, we will authorize/approve up to the certain dollar amount just on ATM and one-time debit card transactions if they opt-in.

IMHO - I think that means that you have a OD program and you are going to have to meet all the OD guidance, not just the opt-in piece in Regulation E.