We are discontinuing our discretionary overdraft protection. While we are no longer going to offer this to new customers, is it necessary to eliminate the existing ODP’s that have been established? If we maintain these existing ODP’s, what is the risk of regulatory backlash?

Whether you retain the established ODP arrangements is a management decision. You can stop offering it going forward without disconnecting the ODP customers you already have, if you wish.

As for regulatory backlash, what's been the reaction to your current program? If you've been criticized about it, and that's one of the reasons you are dropping it, there's a stronger argument for pulling the plug altogether. If there's been no concern voiced so far, there's no guarantee that your regulator won't ding you about it in the future, but the risk is lower.

And of course we have no idea whether there will be more regulatory activity surrounding the product, although it's clear the Bureau has been immersed in it over the past couple of years.

Two other things: If you decide to pull the plug on current ODP customers, be sure to give them notice in advance, whether or not they've been "users." And in deciding whether to pull that plug, consider whether managing two different overdraft programs is something you want to (and are equipped to) do.

Thanks for the information!

One more question if a customer does not have an ODP and an ATM or one-time debit card transaction is authorized and intervening items process resulting in the authorized transactions to OD, can they be charged an OD fee for the transactions. I know if they have an ODP and they have opted out they can not be charged.

If the customer has not opted in under Regulation E section 1005.17, you can't impose a fee for an overdraft triggered by an ATM or one-time debit card transaction.

If you don't have an overdraft program that allows a debit cardholder to overdraw his or her account with an ATM or one-time debit card transaction (by specifically authorizing a transaction known at the time to exceed the balance in the account), you don't provide an overdraft service for which you can legitimately solicit opt-ins.

Short answer: No.