Reg E: New Requirements Regarding Overdraft Services
By Steve Doty
Guess what folks! Not only have there been changes to Regulation DD in regards to overdraft services that become effective January 1, 2010. Now, Regulation E is setting forth additional requirements effective July 1, 2010. On November 12, 2009, the Federal Reserve blessed us with the final rule that will prohibit institutions from charging fees to consumers for paying overdrafts on automated teller machine (ATM) and one-time debit card transactions, unless the consumer consents or opts-in, to the overdraft service for those particular types of transactions.
This requirement is a several months away; however, it will be here before you know it. If you would like to get a head start on what will be required, be sure to check out the Federal Reserve Board's, Press Release. The Press release includes links to the Federal Register notice, a Regulation E highlights document and Model Form A-9.
Banker's Compliance Consulting will be exploring the new requirements in further detail and will provide an update as the effective date approaches. You can add this to your growning list of regulatory changes to be "thankful" for. 