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#1665874 - 02/15/12 09:18 PM Re: Reg E and UDAAP Susielou
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
Originally Posted By: Susielou
We have an ODP program and have customers not in the ODP program that have "opt in". I was told that as long as we have a benefit available (ODP), even if they do not qualify at this time, we are still okay with them "opt in" because even if they do not qualify at this time, they may in the future. We were advised not to "opt out" those accounts.


And whose advice might that have been? I'll guess it was a third-party vendor who's helping you with the program. I'll offer one caveat -- don't activate that opt-in on your system unless you're actually providing the overdraft service covering card transactions. Turning the option "on" could result in your charging an OD fee for a card transaction that overdraws an account without the OD service (no authorization obtained, under floor limit, presentment delay, nominal authorization amount, etc.).
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#1665981 - 02/16/12 02:06 AM Re: Reg E and UDAAP Susielou
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 85,029
Galveston, TX
Originally Posted By: Susielou
We have an ODP program and have customers not in the ODP program that have "opt in". I was told that as long as we have a benefit available (ODP), even if they do not qualify at this time, we are still okay with them "opt in" because even if they do not qualify at this time, they may in the future. We were advised not to "opt out" those accounts.


I can guarantee that the "advice" you get from your regulator will not be the same.
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#1667186 - 02/17/12 06:51 PM Re: Reg E and UDAAP abrewer
Susielou Offline
Gold Star
Joined: Aug 2005
Posts: 362
Midwest
I will talk with our regulator so we will be on the same page with what they will be examining us. Thanks for your input!

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#1667223 - 02/17/12 07:21 PM Re: Reg E and UDAAP abrewer
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 85,029
Galveston, TX
Ahhh......that might or might not be the best idea depending on if you are holding the short end of the stick or not.
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#1679400 - 03/19/12 07:46 PM Re: Reg E and UDAAP GoGreen
LA LA Offline
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Joined: Nov 2008
Posts: 38
Our bank has an ad hoc program and we do not offer the opt-in for ATM and POS transactions. However, management is contemplating on making the ad hoc decisions more consistent between the branches. For example, if the customer has a credit score of 750 and above, we'll pay up to this much, if they have a score above 650, we will overdraw them this far. Of course, in saying that, there are other factors they look at (i.e. length of time as a customer, existing overdrawn experience, etc.) It's not a program, it's just to help the branches be more consistent. Is this considered a program if we do that? Would we have to disclose this information to the customer? Would we have to have a policy and procedures? Thank you.

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#1679558 - 03/20/12 10:31 AM Re: Reg E and UDAAP LA LA
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
If rlcarey is on your overdraft list this morning you are going to check his credit score?
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#1679563 - 03/20/12 11:50 AM Re: Reg E and UDAAP abrewer
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 85,029
Galveston, TX
My personal opinion is that if you have an ad hoc program, it is just a matter of time before the bank will fall under a fair lending review. It is the elephant in the room right now.
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#1680849 - 03/22/12 01:16 PM Re: Reg E and UDAAP abrewer
LA LA Offline
Junior Member
Joined: Nov 2008
Posts: 38
After discussing this further with the President, I didn't understand him correctly. The credit reports were to be pulled for someone requesting a Debit/ATM card. We got our wires crossed. I apologize for the post. Thanks.

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