08/25/2024
I need to reverse provisional credit but the customer does not have the funds in the amount I need to reverse, can I proceed with the reversal of the provisional credit, which will put the account in a negative balance ?
I understand we cannot charge any OD fees and will notify the customer we will honor checks, drafts, or similar instruments payable to third parties and preauthorized transfers from the consumer's account (without charge to the consumer as a result of an overdraft) for five business days after the notification. We must honor items as specified in the notice, but need honor only items that it would have paid if the provisionally credited funds had not been debited.
07/21/2024
Our institution has chosen not to charge NSF fees on ANY ATM/debit
card transactions whether they are one time or recurring. Having said that, if we
are in an APSN situation at end of day and the account is now overdrawn, we
DO charge an Overdraft Fee (even if the only item causing the overdrawn
balance is the ATM/Debit card transaction). Would this be perceived at
UDAP/UDAAP? Additionally, both NSF fees and OD fees are the same amount.
04/23/2023
When reading the Consumer Financial Protection Circular 2022-06, we are trying to understand if banks are not allowed to charge an overdraft fee on a transaction that was authorized positive and settled negative, regardless if they had OD privilege or not? In the Circular 2022-06, it states that overdraft fees can be deemed unfair acts or practices even when the financial institution complies with federal regulations including Regs Z and E.
12/11/2022
In light of the recent CFPB Consent Order against Regions Bank for charging Authorized-Positive OD fees, help me understand these were transactions that were not related to Reg E Opt In status? In other words, because these transactions had sufficient available balance it would not have mattered what there Reg E status was. Is that a true statement?
02/16/2020
Until the FCC determines how to interpret the statutory language defining an "automatic telephone dialing system" (ATDS), what precautionary measures can my institution take to mitigate the risk of litigation?
12/22/2019
Can a POS transaction be returned for insufficient funds and charged an overdraft fee if our bank does not offer overdraft protection? Would there
be a benefit for a customer to "Opt In" if we continue to not offer overdraft protection?
03/31/2019
Regarding the following question I read today, would it be okay for a bank to charge the overdraft fee if the customer HAD opted in - even though the
account had a positive balance when the transaction was approved? Or, does this fall in line with the UDAP statement from the agencies?
Question:
Can we charge an overdraft fee for a one-time debit card transaction that overdraws an account of a customer who has not opted-in if there were
sufficient funds at the time of authorization but not at the time the transaction posts?
Answer:
No. The rule does not include any exceptions for card transactions that overdraw an account. The rule at its simplest is, "No opt-in, no overdraft
fee."
12/09/2018
My bank has a 30 day waiting and vetting period prior to us granting overdraft service. We do not have overdraft services that come with the account but rather it is our practice to offer an OPT-IN to Standard (payment of checks, ACH.) and then we offer another opt-in to Extended Service which allows the payment of ATM and one-time POS into overdraft under Regulation E. In this example, the customer opted in to both Standard and Extended Service. Customer received the Regulation E confirmation notice.
Without waiting the 30 days initially disclosed, my bank immediately paid into overdraft ATM and Debit card charges and fees but returned the checks that came through as insufficient. Once the 30 day vetting period for this customer had expired, they denied the customer for overdraft service but continued to allow only Extended service, ATM and One-time debit payments and
charges to go through. It is my understanding that the Extended Service under Regulation E is pursuant to the overdraft program offering and not to be used as a stand alone service outside the overdraft program. If we rejected the customer for our overdraft service, shouldn't that include all transactions?
12/02/2018
1. Has the CFPB issued any regulations concerning overdraft payment programs?
10/21/2018
I understand that businesses are exempt from the overdraft protection opt-in requirements but, am uncertain if the exemption covers Trust accounts and Estate accounts in that "personal, family or household" exemption?