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#2160454 - 01/13/18 10:17 PM Overdraft privilege
Anonymous
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we are talking to a vendor who it pitching a system that creates fluctuating limits for our customers based on their individual deposit and account activities. The weird thing is that that you cannot tell the customer what their OD privilege line is because it changes. Has anyone heard of this, they say it is customized so it better for the customer and bank? Management is moving it on the fast track so I need something other than my gut to either slow them down or mitigate my concerns. Please help if you have any opinions on this

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#2160455 - 01/13/18 10:29 PM Re: Overdraft privilege [Re: Anonymous]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 67859
Loc: Galveston, TX
It is a automated decision tool for the payment of overdrafts. We built one at our bank in the mid-80's, decades before the ODP craze Without communication to the customers regarding the fact that you may pay their overdrafts up to a certain amount, it is not an ODP program as defined by the regulators. It just eliminates the "ad hoc". Fair lending is your greatest worry, especially if you ever allow any overrides.
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