Reg E Opt-In Model Notice

Posted By: ACBbank

Reg E Opt-In Model Notice - 06/25/21 08:30 PM

I have a question about the A-9 Model Consent Form for overdrafts. Is it required to provide this form? If a bank decides to avoid authorizing and paying ATM and one-time debit card transactions that would overdraw a consumer's account, can the form be avoided? If so, if the Bank does decide to pay a covered transaction that overdraws an account, a fee cannot be charged at all?
Posted By: rlcarey

Re: Reg E Opt-In Model Notice - 06/25/21 09:35 PM

Well, you have to have an overdraft protection program first. Then you can decide if you want to offer an opt-in. You are not required to, but as you point out, you could not charge an OD fee on those transactions if you don't do both.
Posted By: ACBbank

Re: Reg E Opt-In Model Notice - 06/25/21 09:42 PM

Randy - when you say an ODP would this include an Ad Hoc program? Or does it need to be a formalized ODP?
Posted By: rlcarey

Re: Reg E Opt-In Model Notice - 06/25/21 09:54 PM

It has to be a formalized ODP program
Posted By: ACBbank

Re: Reg E Opt-In Model Notice - 06/25/21 10:02 PM

Thank you Randy.