Reg for Excessive Overdrafts

There is no regulation that addresses this that I am aware of, but there are two Guidance documents that deal with overdraft programs, and identifying and working with customers who may have abused the overdraft program or been unable to manage it. The 2005 Interagency Guidance on Overdraft Protection programs put it this way (virtually identical language is found in the OTS's 2005 Guidance on the same topic): "Monitor overdraft protection program usage. Monitor excessive consumer usage, which may indicate a need for alternative credit arrangements or other services, and inform consumers of these available options."

First published on BankersOnline.com 9/20/10