Since our institution started offering overdraft priviledge, it has come to our attention, as well as other banks-I'm sure, that we must change our senior account. We currently offer it to ages 55 and over. Now we must offer it to ages 62 and over. We have been told it is in violation of ECOA & Reg B. Any hoo.. how do we tell our customers that we have been "doing this wrong" for.. at least a year now? How exactly could we phrase this? Anyone else having the same ordeal?

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Now we must offer it to ages 62 and over.

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Not necessarily. There are other ways to beat this animal. It really depends on your other products. Many Banks offer a free account to everyone - if you do - your senior account is not priced prohibitively. You have to look at the whole picture. The other option is to change one of your other accounts in your product mix rather than changing your senior product.

If you do change to 62 and over - you will need to consult your silver tongued marketing people rather than us compliance folks.

Appreciate your input. Unfortunately, we have no marketing folks and it is left to me!

Bringing this thread back to life...

If the fee for Senior Checking (55+) is $5/month on an interest bearing account (below minimum balance) and $10/month on the same account for those of us that aren't 55+ yet, but we have a non-interest bearing account with a $5 a month fee, does the Reg B issue resolve purely on fee price or do we have to factor in that the senior account is interest-bearing?

Before I make the happy announcement that our senior checking product suddenly becomes a Reg B/ECOA issue when we tack ODP onto it, what are the chances that I can rely on another account with the same fee structure, but not the interest rate?

I haven't seen this premise (interest vs non-interest bearing) tested yet in the banks that I know had some troubles to know how to definitively answer. I would definitely use it as a defensive argument if I was cited as having an issue - not sure yet about on offense.

Well then, I guess I'll be the test case I'm going to list it in my product risk analysis and show that we have another account with the same monthly fee as the senior account and that the minimum balance for the interest-bearing senior account is significantly higher than the minimum balance in the other account and see if it flies. Stay tuned - product launches on Sept 1, exam begins early October...

ECOA or Reg B are credit regulations and should not apply to checking accounts. Age 62 applies to credit products not checking accounts

Jim - you better start reading up if your bank offers ODP on checking accounts and you have any responsibility for the compliance outcome of your exams. ODP is considered incidental credit under Reg B and since it can't stand alone as a product, it necessitates a DDA as a front door. That brings the DDA account in under Reg B. There's lots of discussion on this in other threads if you search on overdraft protection and Reg E.

The Webinar "Top Compliance Mistakes Operations" gave us a wake up call to review our overdraft program regarding senior accounts. Our senior checking account is available to 55+ as well, offers ODP, and earns interest. Our "free" account does not have the option to earn interest. If your product passes the mustard, then maybe ours will too!