ODP for students

Posted By: UTBPMOM

ODP for students - 08/01/12 04:18 PM

With the restrictions on credit cards for students-are there any issues with having a student checking account with an ODP limit?
Posted By: John Burnett

Re: ODP for students - 08/01/12 05:17 PM

Legally, as long as the kid is an adult, I see no problem. In some states and under limited conditions, it might be legally OK for a minor, although I think I'd steer clear.

I'd be very wary of offering ODP protection in the form of an overdraft payment program for students unless you had very low limits, a generous de minimis provision and a tight (low) fee cap. I'd also monitor the heck out of it to ensure the student doesn't abuse (or become abused by) the program.

With the CFPB's current focus on the costs of education and overdraft programs, promoting an overdraft payment program for students might be the equivalent of throwing gasoline on a bonfire.
Posted By: GoGreen

Re: ODP for students - 08/02/12 05:17 PM

We always look at state laws as who is able to sign a contract and legal age.
Posted By: UTBPMOM

Re: ODP for students - 08/02/12 06:24 PM

thank you for the feed back