Reg DD - ATM Balances Including ODP Amounts

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Question:

With the new amendments to Reg DD in 2009 about ATM balances including ODP amounts, is it enough to have separate balances, i.e. Ledger Balance (actual) and Available Balance (including ODP)? That is what we have currently. I just want to make sure we are in compliance if the available balance doesn't actually state that it includes ODP.

Answer:

No, you are not in compliance. If the available balance includes funds from an available overdraft service, a line of credit or from a standing transfer from a consumer's account, the balance must be prominently labeled as including such funds. "Includes overdraft funds" is considered adequate wording.

If the funds can't be used for all transactions, that fact must be disclosed, too. Such would be the case if the customer opts out of ATM and debit card coverage under your overdraft service.

If the available balance (as you've described it) appears on the ATM screen and includes balances from an overdraft service (excluding transfers from other deposit accounts or from a line of credit), you also have to comply with the advertising requirements in section 229.11(b)(1)(i) and (iii), and display the fee or fees for the payment of each overdraft and the time period within which the consumer must repay the overdraft.

As to the balance, it appears that displaying the available balance as you have described it may carry compliance requirements rendering it too difficult to accomplish, particularly at non-proprietary ATMs. I believe that's exactly what the Fed may have intended.

First published on BankersOnline.com 2/01/10