Overdraft Restitution Update
By Jerod Moyer
It’s about time! We’ve been hearing through the grapevine that the FDIC has pulled the emergency brake on the Unfair or Deceptive Acts or Practices (UDAP) restitution corresponding to the Regulation E overdraft opt-in. While the issue is by no means dead, it appears they’re in a holding pattern awaiting further instruction. If you’re not familiar with the chaos surrounding overdrafts and the Regulation E opt-in, check out our December 2011 newsletter. The issue surrounds hundreds of thousands of dollars in restitution threats regarding specific overdrafts and the Regulation E opt-in.
In addition, surprise, surprise, the topic is being hotly debated in Washington D.C. right now! Rumor has it we’ll have some answers within the next two or three weeks. I’m not sure we should hold our breath as we also heard two months ago that an FDIC Financial Institution Letter (FIL) was eminent and we have yet to see it. Stay tuned!