Our bank does not allow customer to opt-in or opt-out in regard to the overdraft charge on ATM/Debit card overdrawn. We are simply an opt-out bank completely.

During our examination, the examiner noticed that our bank's disclosure has a sentence said, "You agree that we may charge fees for overdrafts, except for overdrafs caused by ATM withdrawals or one-time debit card transactions if you have not opted-in to that service." Since we are an opt-out bank, they did not like the verbiage "if you have not opted-in to that service". We are going to remove this verbiage and reprint our disclosure.

I like to know if this require notification to our depositor since this is correction whether than a complete change. Any advice is greatly appreciated.

I believe Reg E prohibits charging a fee for overdrafts by debit or ATM cards without affirmative opt-in in accordance with 1005.17(b). If you want to charge an overdraft fee for those transactions, you need to develop an opt-in process.

NO, the change in your disclosure verbiage doesn't really affect existing customers at all. It doesn't affect whether or how much they will be charged or do any of the other things that would trigger a change in terms notice.

Thank you for the advice!