We include the dollar amount in an ODP limit in customers' available balance. This information is included in the balance information that customers receive via the ATM, internet, automated telephone system. I just learned today that the tellers include the ODP amount in the available balance.

I know that we can include this info when someone makes a balance inquiry at via ATM, internet telephone systems. Can we include it in balance inquiries made the teller line or call center?

Yes, you can. However, you should adhere to the ODP Guidance that suggests it's a best practice to warn the customer that a withdrawal sufficient to use part of the ODP protection will result in overdraft fees.

Thanks John for your help.

While you can include the amount of the available overdraft in balance inquiries across the board as far as the regulation is concerned, you might want to consider the possibility that some customers would be sincerely annoyed at the obvious attempt to manipulate them into issuing an item against insufficient funds. I very definitely would.

Consider whether you should add some language not required by law to your related disclosures; e.g.

Our employees and our automated systems add your overdraft protection amount to the amount we provide in response to balance inquiries. For example, if the balance in your account is $356 and you contact us to ask for your balance information we will say your balance is $656; i.e. we will add your $300 overdraft protection amount to your actual balance. If the balance in your account is $356 and a merchant calls to see if there are sufficient funds to pay a $400 check you are issuing we will say there are sufficient funds to pay the item at that time. (We do not disclose actual balance informations to third parties, but merely indicate whether there are sufficient funds to make a payment you are authorizing.)

Personally, I think the practice of quoting incorrect balance information in any medium is intentionally misleading. In most cases the consumer has been told the ODP amount and banks could assume that he might be able to add it to his balance with no help or encouragement. It's possible that regulatory perceptions may evolve toward the same conclusion.

Kbuck:

You might also want to consider how you will address the issue of reporting balances at ATMs you don't control.

I imagine that your bank is part of one or more ATM networks. Are you able to send a true (not inflated by the ODP coverage amount) balance in response to a balance inquiry to non proprietary ATMs? If you aren't able to send them a different balance than the one you're displaying at your own machines, you probably have a problem, or will have when the most recent Truth in Savings regulation changes become effective.

The problem is that including the ODP amount in any balance inquiry, whether or not it's separately identified, will be an advertisement of your ODP plan (unless your ODP is nothing more than coverage from either another customer deposit account or a revolving line of credit subject to Regulation Z). And when you advertise the ODP, that ad has to include two pieces of information -- the fees triggered by an overdraft (not just the fact that there will be fees, but the amounts of the fees), and the time period within which the customer will be expected to cure an overdraft (if one results). And putting that information on the screen with the balance at a non proprietary ATM is a technological challenge that I don't imagine has been worked out for every network your customer's cards can be used in.

Including the the ODP limit in the available balance also triggers the new advertising disclosures under 230.11 (see Commentary 230.11(b)-1.iii.). This could present problems for ATM, internet, and telephone systems.