We were using the model form for opt in to ATM & one time POS transactions. We also have an overdraft protection program. Both forms had both options, yes I want it and no I don't want it. Our examiner told us that this was confusing to the customer and we needed to only have the opt in on the ATM/POS form. Also said that we should not have customers opt in or out at account opening. Told us to wait till they qualify for program, then disclose and have them call or come in if they want to opt out of OD program.

Has anyone else heard of this?

Seems like we would lose safe harbor on model form. Also feels like we are pushing Cust to take both programs which regulators have been opposed to.

We had an internal auditor about a year or so ago tell us that we should remove the "opt out" line for the same reason. They said the customer can "opt in" but there is no "opt out." Unless they "opt in" customers are automatically out of the program.

I have not been told about sending the information after account opening. We provide ours at account opening, then once they qualify the system adds the program to their account if they opted in.

Examiner or auditor.

Having customer's opt-in to an standard overdraft program rather than requiring them to opt-out is a much more progressive approach and shows that the customer made a conscience decision to participate.

Kick this up a notch if they insist. They are expressing personal opinions here.

Thanks,

We also think it better to discuss with Cust at acct opening, so much easier for them than reading it. We also like to have them definitively state Yes or No.

Also seems that opting out of the program is not as easy as regulators generally like it to be; end result is that they are in by default which really sounds like UDAAP.