Conditioning Overdrafts on Opt-in

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Question:

Reg E (12 CFR 1005.17(b)(2)) says we cannot condition the payment of checks and other transaction on the whether the consumer has opted into overdrafts via ATM and one-time debit card transactions. However, it does not clarify whether the opposite is allowed – meaning can you condition ATM and one-time debit card transactions on whether someone has opted into overdrafts via check and other transactions? I can't find any guidance on this question, so any advice is much appreciated.

Answer:

You won't find any guidance because none exists. If a customer does not want to participate in a courtesy overdraft program for checks and ACH transactions, you are under no-obligation to accept an opt-in just for one-time ATM debit card transactions. Most core systems lack the functionality to automate the payment of one-time ATM/debit card transactions and reject checks and ACH debits.