I thought I read at the time of Reg E opt-in that it probably wouldn’t pass the “smell” test if you allowed a customer to opt-in at an ATM machine. Can someone point me to where I read that – or did I imagine it? Management would like to consider a similar program.
A competitor bank does not have a courtesy OD program. They do not have the Opt in process but they disclose they may make an exception for some ATM withdrawals. “We may occasionally give you the opportunity at our ATMs to agree to our overdraft practices for a specific ATM withdrawal and, if you agree, we authorize and pay that ATM withdrawal. Please note that overdraft fees can apply to these withdrawals”

No, you didn't imagine it. Dig out the 11/17/2009 Federal Register document (actually, you can find it HERE) in which the final rule was published, and skip over to the 17th page of the document (page 59049 of the FR), middle column, near the bottom, for a short discussion of "Real-time opt-in." The Fed thought it might be of some benefit to a consumer to be able to opt-in at an ATM, for example, but was concerned about how to ensure the consumer got all the info that's supposed to be delivered under the disclosure requirements of §205.17 before opting in. So the Fed backed away from the question, making such opt-ins technically unacceptable unless it can be demonstrated that §205.17 requirements have been complied with.

I am careful to critize another institution's polcies and procedures based on hearsay as I would hope they would show me the same courtesy. What I can say with 100% certainty is that the consumer must be provided with description of how the bank handles overdrafts (generally the A-9 form), be given an opportunity to opt-in for those transactions, and be provided with a written confirmation of the opt-in and the customer's right to revoke the opt-in at any time.

The customer will not have received the written confirmation at the time of an opt in at the ATM, and it is unlikely the disclosure will display at non-proprietary ATM locations.

As to your competitor, as I do not know what they have disclosed to their customer at account opening or what choices the customer has made, I will not opin whether or not they are in compliance.

Thanks for the link - I'm not going crazy!!