Regulation E Overdraft Opt-in

Answered by:

Question:

We offer an automatic transfer from savings to checking to cover overdrafts. Can we charge an overdraft fee for a debit card transaction if there are insufficient funds in the savings account?

Answer:

No. To charge a fee, we must have a customer opt-in to a courtesy overdraft program. This process does not apply institutions that do not have automated programs to cover overdrafts. Regulators consider it an unfair practice if the customer is opting into a fee where no service is being provided.

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Learn more about Brian Crow’s webinar The Maze of Overdraft Compliance