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#2218727 - 07/30/19 02:08 PM REG E OPT-IN CONFIRMATION
t0dd Offline
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Joined: Sep 2004
Posts: 229
We had a recent external audit which identified we were not providing the overdraft opt-in confirmation after the consumer consented to opt-in. We found the field which triggers the notice to be printed and have since turned it on. We were also going to send out the notice to all our customers who have consented but am wonder if we would also need to refund all the fees that were charged since we did not receive their confirmation of consent. Curious if any other banks have had this issue. Thank you in advance for your response.

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#2218737 - 07/30/19 02:41 PM Re: REG E OPT-IN CONFIRMATION t0dd
rlcarey Offline
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rlcarey
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Posts: 83,225
Galveston, TX
In order to asses a fee under 1005.17(b), you have to do 4 distinct things. Sending a confirmation is #4.

I think you are on very shaky ground and are probably a candidate for a CMP.
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#2218747 - 07/30/19 04:20 PM Re: REG E OPT-IN CONFIRMATION t0dd
t0dd Offline
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Joined: Sep 2004
Posts: 229
Our consent form has the Right to Revoke Consent language and we provide the completed form to the customer at account opening. In my mind that is sufficient confirmation. Am I still missing something?

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#2218752 - 07/30/19 04:40 PM Re: REG E OPT-IN CONFIRMATION t0dd
Adam Witmer Offline
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So the customer is given, at the time of account opening, a copy (they can keep) of the completed opt-in notice along with the statement informing them of their right to revoke the opt-in at any time?

If so, it appears you may be in compliance according to comment 7 to 1005.17(b) which says this:

"A financial institution may comply with the requirement in § 1005.17(b)(1)(iv) to provide confirmation of the consumer's affirmative consent by mailing or delivering to the consumer a copy of the consumer's completed opt-in notice, or by mailing or delivering a letter or notice to the consumer acknowledging that the consumer has elected to opt into the institution's service. The confirmation, which must be provided in writing, or electronically if the consumer agrees, must include a statement informing the consumer of the right to revoke the opt-in at any time."
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#2218758 - 07/30/19 05:34 PM Re: REG E OPT-IN CONFIRMATION t0dd
rlcarey Offline
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rlcarey
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Galveston, TX
That is probably the reason your confirmations were turn off if that is your process.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2219274 - 08/07/19 02:34 PM Re: REG E OPT-IN CONFIRMATION t0dd
John Burnett Offline
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John Burnett
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Posts: 40,086
Cape Cod
That would cover you for opt-ins using that form. Do consumers opt in using any other channel? Online? By phone? If so, how are you handling the confirmation step in those instances?
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#2255829 - 06/23/21 07:03 PM Re: REG E OPT-IN CONFIRMATION t0dd
Bailey Stratton Offline
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Joined: Dec 2019
Posts: 5
Sorry to bring this up again. The Notice that they provided at the time of account opening covered them for the confirmation of consent for the first time the borrower opted-in.

We have a consumer who calls to opt-in, and then calls and opts-out. Then a few months later she calls to opt-in again. Would the notice of confirmation of consent need to be mailed every time they call and opt-in?

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#2255838 - 06/23/21 07:29 PM Re: REG E OPT-IN CONFIRMATION t0dd
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,225
Galveston, TX
Yes it would.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2255865 - 06/23/21 09:18 PM Re: REG E OPT-IN CONFIRMATION t0dd
Bailey Stratton Offline
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Joined: Dec 2019
Posts: 5
Thank you!!

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