Skip to content

Bank Reporting for Exceeding Overdraft Limits

Answered by: 

Can a bank report a customer to a collection agency, ChexSystems, or credit bureau if the account had an overdraft limit?

The federal agencies have said that it would be an unfair or deceptive act or practice to report a depositor for mishandling an account (including creating overdrafts) if the customer's account activity conformed to the parameters of the bank's overdraft service (such as an "overdraft privilege" program). Presumably one of the requirements of any such program would be that the customer cure overdrafts within a stated period. If the customer failed to cure an overdraft as required, it would be appropriate to report that infraction. It would also be appropriate, I believe, to refer for collection an overdraft account past the time limit for returning to a positive balance. It would not, however, be appropriate to report the frequency of the customer's use of the service if it was within the parameters of the program.

First published on 10/25/10

First published on 10/25/2010

Filed under: 
Filed under operations as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics