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Notice Regarding Overdraft Fees

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Question: 
Is a Notice Regarding Overdraft Fees disclosure required to be posted on an ATM? A question was recently asked about required ATM signage (https://www.bankersonline.com/qa/required-signage-atm) however I did not see mention of this Notice. Could this be a CA specific notice or one that may have been required in the past? The notice reads “If you do not have sufficient funds in your account for the withdrawal amount requested,completing the transaction may result in overdraft fees if you have given us prior permission to complete such transaction….”
Answer: 

One of the "Best Practices" listed in the Joint Guidance on Overdraft Protection Programs, published on February 24, 2005, is "Alert consumers before a transaction triggers any fees." While the regulators' preference stated in the Guidance is that specific notices be given if possible, a general statement could be used (for example, at ATMs) explaining that transactions may be approved that overdraw the account and fees may be incurred. This Guidance is still in effect.

As you mentioned, there may be more specific state requirements.

First published on 07/31/2016

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