Here is a strange question. If we have an account that is covered by Reg O and the customer opts out of overdrafts via debit card, are we allowed to charge a fee? How are other banks handling this? The account titling is joint an account where the officer is the parent of the account holder.

Thanks!

You are required to charge a fee on an account that involves an overdraft of an executive officer no different than any other customer. If you are prohibited from charging a fee on other customers, the same would apply to the EO.

215.4(e)(ii) The member bank charges the executive officer or director the same fee charged any other customer of the bank in similar circumstances.

From the other side of the question -- The account is owned by consumers and they are protected by the prohibition on assessment of a fee for an overdraft triggered by an ATM or one-time debit card transaction if they have not opted in to your overdraft service for such transactions. They can't be denied that protection.

But Randy's analysis is the one to stick with, because it doesn't need to reach beyond Reg O for the answer.