Is the 60 day charge off on checking accounts that is mentioned in the guidance just a "suggestion" for safety and soundness or is this a requirement? Any help appreciated.

It is and always has been a requirement, as far back as I can remember.

Can you point me to the requirement? I need evidence to give to Senior Management for an account that has been overdrawn (substantially) since December 2010. I believe they think this is just a "suggestion". Thanks in advance for your help.

First, look at the Guidance from 2005. The realize that FDIC examiners are expecting compliance with those guidelines. This is a safety and soundness issue, and examiners don't appreciate banks that play fast and loose with S&S issues.

The Bank I worked for at the time began complying with the 60 day requirement in 2005, especially after "encouragement" from Examiners during a safety & soundness Exam.

This is addresssed in overdraft program guidelines... Where else is that ruling found...is it somewhere in FFIEC rules? IOW, the 'pre' overdraft program detail...general requirements on loan charge offs.

Late, as usual. Joint guidance from 2005.

Federal Reserve: http://www.federalreserve.gov/boarddocs/srletters/2005/SR0503a1.pdf

Or, if you prefer the FDIC: https://www.fdic.gov/news/news/financial/2005/fil1105.html#body

Or maybe the OCC: http://www.occ.gov/news-issuances/federal-register/70fr9127.pdf

Let me preface my post by stating, Safety and Soundness is NOT my strong suit. (And, FWIW, I even sometimes wonder if Compliance is!)

As such, I would like to resurrect this thread with the following questions:

1. I've seen the interagency guidance on overdrafts, but where can I find a regulatory citation for this "requirement."

2. Does any law/regulation include a definition for "uncollectable?" [For instance, if the customer's account balance lives in the realm of the negative, but they continually have regular, ongoing deposits (direct or manual) never (or only occasionally, possibly even outside of the 60-day time-frame) reaching a positive balance, would the account be considered uncollectable?]

3. Does an intraday positive balance reset the 60-day count? [For example, a customer is overdrawn $500, but makes a $600 deposit, bringing the account to a positive status at some point during “daylight” hours, but at the end of the day other items clear (e.g., checks totaling $200) taking the customer back into the negative. So, although the customer’s ledger balance was technically positive (if only for a few moments), the system never registered the account as being in the black. Would this scenario allow for a "restart" of the clock?]

1. There are none.
2. No - uncollectable means that before the 60 days in overdraft expires, you know that you have no chance of collecting the money.
3. No

Thank you.