Wow! Keep voting! Ken Golliher and I are gathering this information in connection with our upcoming Webinar -- Hot Issues on Overdraft Protection.

Using our standard, posted fees, I would say yes to the first option. Our account officers have the discretion to pay or return an item at differing amounts, based on factors such as knowledge of customer and their relationship with the bank, but the officer's discretion can not cause the fees to exceed the amount stated in our fee schedule. They can only pay or return at lesser amounts if they are so inclined.

I've signed up for the Webinar. We're stuggling with the OD Privelege dilema right now. I've listed to four different presentations and read everything I can get my hands on, from regulatory guidance, to consumer type articles. I just plain don't know where I stand on instituting a program. I sure would like to know how others feel about it, whether or not you have a formal program. I'd also like to know, from those that do have a formal program, how they like it, how their customers like it and if it really showed net increases in non-interest income as touted. Do we need to outsource, or can we build specs in our ITI system to automate and expand what we already do?

I'm hoping the Webinar will answer most of these questions, but does anyone have opinions they'd be willing to share?

Thanks, and I hope everyone is having a good Monday.
Wyogirl

When you say "formal program", what do you mean by that? Do you simply mean one put in place by an outside vendor?

I believe that the poster is referring to "Bounce Protection," not the common practice of charging a fee for paying or returning a check NSF. Bounce Protection is a separate product/service, subject to a lot of consumer group and regulatory negative press.

I also believe that the survey relating to the common practice, not Bounce Protection.

Actually Mr. Paragon, "bounce protection" is a hot issue in OD Protection and MaryBeth is gathering information for the upcoming Webinar. Maybe this particular discussion should be on a different thread, but the poll just made me further analyze the question MaryBeth was asking. To carry the poll question further, I was curious if the "common practice" fees that people are charging for NSF items are within particular, perhaps vendor administered OD programs, as a means of OD Protection.

I'm looking forward to the Webinar because of my current dilema. Am I off base MaryBeth? The syllabus sure sounded like it would be helpful in my current state of...

Wyogirl

OK, but I thought that your post was taking this thread off the track.

By the way, don't take this as a negative, but what's with the spelling of some of the words that you are using? Mistakes are made and I make mistakes, but repeated mistakes?

OK, so are you saying that NSF checks are like mispelled words and that we all may, at some point in our lives mispell a word? I think I might be able to follow your train with a little help. Am I on the right track?

1. What are your fees for mispelled words?
2. Is it a different fee if the author doesn't have spell check?
3. Is the fee a little higher if the author has spell check and chooses not to use it?
4. Say you easily corrected the word, causing little or no embarrassment to the author, might you waive the fee?
5. What about that author who doesn't give a _ _ _ _?*

*This must be the category of highest, non-interest income earning potential.

rofl

In your case, I'll go with #5. I was just curious. Three spelling errors in one post is a record, but we all make mistakes.

My bank recently instituted an overdraft privilege program.
Customers are allowed up to a total of $500 in the negative for checks, debits, ATM transactions etc. The increase of NSF's is significant and our daily reports are getting longer every day. Fee income has increased dramatically though and some losses have incurred but we are collecting on the majority of them. I will say that the response of the customers has been mostly positive. They really like the fact that the embarrassment and merchant NSF fees are eliminated.

I was skeptical of the concept at first but you need to change your mindset regarding overdrafts in order for the program to succeed.

We've had an overdraft protection program for years. No vendor -- it's internal. All new accounts have a limit of $100 and after 30 days it increases to $300. Fees are the same NSF fees with no pogram and no service or daily OD fee. There is an option to decline if the customer so desires. It has increased our NSF income dramatically but the customers love it. Saves merchant return check fees. Most customers use it infrequently but we do have the few that abuse it. Those accounts are charged off. Many of the concerns addressed in the proposed guidance, such as ledger balances for attempted ATM and POS, we addressed at the onset of the program.

A very key concept here is the difference between doing it as a customer service and doing it for fee income.

customers love it

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That does not mean that its good for them. It's kind of like food that's not good for you. If it's really about customer service, as Andy states is the good reason to offer this product, cut your fees by 1/2 - but you may want to check with management first as it may not be all about service.