Skip to content
GeoDataVision
Thread Options Tools
#792 - 02/27/01 04:22 PM Overdraft Line of Credit Notifications
CSpellman Offline
100 Club
Joined: Nov 2000
Posts: 176
In the past we have provided notifications to customers when they access their overdraft line account (only can be accessed by overdrawing your checking account with a physical item, you can't access the account via an ATM). This notice was basically--the bank advanced $X funds to your DDA # y on Z date. Monthly we would send a statement which included all the open-end Reg. Z disclosures including a short description of each advance.

Our agreement does not state that we will provide the notice, state law does not require the notice and I can't find any federal regs. that require the notice. Our operations group would like to discontinue printing and mailing the notice. Beside the customer service issues, anything that I'm missing? Thanks in advance.

_________________________
...but I saved a lot on my auto insurance

Return to Top
General Discussion
#793 - 02/28/01 05:10 AM Re: Overdraft Line of Credit Notifications
Al Miller Offline
Diamond Poster
Al Miller
Joined: Oct 2000
Posts: 2,416
Pleasanton CA USA
The fact that the original agreement did not mention the notices may not be the problem. Providing them was your "pattern and practice" and may have amended the agreement. Since these are not HELOCs, you can probably change the terms with a simple change in terms notice, either as a statement stuffer or maybe a statement message. I would give a month's notice just to be safe.

------------------
Al Miller, CRCM
Fremont Bank (CA)
(510) 790-5825
(510) 505-5211 FAX

Opinions expressed are my own and not necessarily shared by my employer.

_________________________
Al Miller, CRCM
Opinions expressed are my own and not necessarily shared by my employer.

Return to Top
#794 - 02/27/01 06:41 PM Re: Overdraft Line of Credit Notifications
Bear Collector, CRCM Offline
Diamond Poster
Bear Collector, CRCM
Joined: Nov 2000
Posts: 1,830
District of Columbia
I agree with Al. Our bank has never provided notifications of draws against overdraft lines except for the monthly statement. I had a complaint letter from a customer regarding this practice, and did a substantial amount of research to determine that it was OK to do it this way.
I also agree that a simple notification to your customers would be sufficient. If your institution offers telephone or online banking, you might want to inform your customers of ways they can check periodically to see if their lines have advanced.
I was curious, however: Al mentioned something about HELOCs. We are getting ready to allow customers to link their HELOC to their checking account(s) for overdraft purposes. Are there different rules that apply to this practice as far as notifications of the advances are concerned?
_________________________
Being kind is more important than being important.

Return to Top
#795 - 02/27/01 07:48 PM Re: Overdraft Line of Credit Notifications
Al Miller Offline
Diamond Poster
Al Miller
Joined: Oct 2000
Posts: 2,416
Pleasanton CA USA
No, Leslie, only in the ability to change terms (or, more accurately, the lack of ability to change terms).

------------------
Al Miller, CRCM
Fremont Bank (CA)
(510) 790-5825
(510) 505-5211 FAX

Opinions expressed are my own and not necessarily shared by my employer.

_________________________
Al Miller, CRCM
Opinions expressed are my own and not necessarily shared by my employer.

Return to Top
#796 - 06/15/01 05:07 PM Re: Overdraft Line of Credit Notifications
Jan94 Offline
Platinum Poster
Joined: Mar 2001
Posts: 828
USA
Sorry I posted this in the wrong place. I'll try again later. Thank you.

[This message has been edited by Angela (edited 06-15-2001).]


Return to Top