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Reg E Opt-in/Opt-out Notifications

Answered by: 
Randy Carey

Question: 
If we begin sending notifications to customers during the first quarter of 2010 with an effective date equal to the mandatory compliance date of 7/1/10, and a customer returns the notification but opts out, would we be required to honor the opt-out prior to the effective/mandatory date, or could we advise him that the opt-out would not take effect until such date?
Answer: 

You have it backwards. The customer has to opt-in to overdraft coverage.

205.17:
(b) Opt-in requirement. (1) General. Except as provided under paragraphs (b)(4) and (c) of this section, a financial institution holding a consumer’s account shall not assess a fee or charge on a consumer’s account for paying an ATM or one-time debit card transaction pursuant to the institution’s overdraft service, unless the institution:

(ii) Provides a reasonable opportunity for the consumer to affirmatively consent, or opt in, to the service for ATM and one-time debit card transactions;

First published on BankersOnline.com 1/11/10

First published on 01/11/2010

Filed under: 
Compliance
Technology
Filed under compliance as: 
ATM
IT
Filed under technology as: 
ATM
IT

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