Overdraft Privilege and Customer Communication

Question:

With the recent discussions around disclosure issues and overdraft privilege programs, we want to make sure the overdraft privilege program we put in place meets high standards for communication with our customers. What should we look for in a third-party system?

Answer:

Both recent media coverage and the Federal Reserve Board's request for comments on this issue reinforce the need for communication with customers to be a priority. Look for a system that:

Provides communication tools to fully inform customers about how the overdraft privilege process works before they access it
Encourages customers to manage their accounts responsibly
Notifies customers promptly when they access the overdraft privilege service and incur a fee
Doesn't increase overdraft fees or add daily fees
Includes automated tracking and monitoring
Includes support and education for customers if they need help returning their accounts to positive balances.

Vendor:

Pinnacle Financial Strategies