If a bank doesn't have an ODP product is their a requirement to notify customers of excessive fees? We do have an overdraft LOC that consumers may apply for and also offer another deposit product tied to the DDA account to pull funds in as needed.

Thanks!

Bump - any advice (with the exception of using an incorrect 'their' instead of 'there' - very embarrassing)?

I'd have to go through all the guidance again, but I don't think there is a requirement per se to notify them of 'excessive fees'.

Most of the guidance, if I remember, advocates limiting the number of per-item NSF/OD fees per day and the number of days you charge a continuous fee.

Thank you and that's what I'm working with. Our statements do tally the NSF/OD fees.

The 2010 FDIC Guidance references the requirement to provide a counseling notice for those frequent flyers (which the guidance described as having six or more paid overdraft fees in a rolling 12 month period) for whom we pay overdrafts. (The Fed and OCC have not published similar guidance or signed off on this document.) If you do not have a formal program and return items that create overdrafts, exceed the LOC available credit or there is no money in the account to transfer, then there is no need to provide this notice.

This Guidance only applies to the paying of overdrafts as the FDIC is concerned about the industry "encouraging" poor financial decisions. Returning checks and charging a return fee does not encourage overdrafts so the notice would not be required for these.

The only other caveat I would toss in here is the one about being careful about excessive transfers from a savings or MMDA to cover overdrafts. If those transfers are done in person, there's no problem. But if they're done automatically, they count toward the Reg D 6/month limit.