Federal Reserve Board Clarifies Final Rules Pertaining to Overdraft Services
The Federal Reserve Board in late May issued clarifications to certain aspects of its final rules under Regulation E and Regulation DD. The clarifications come in response to questions that have arisen and provide additional guidance on compliance with certain parts of the final rules, said the Board's May 28 press release.
Clarifications cover reporting account balances, overdraft fees
The Board also amended the effective date of a rule requiring financial institutions to begin using the term "total overdraft fees" on their periodic statements to describe the total dollar amount for all fees or charges imposed during the statement period and calendar year-to-date for overdraft services. This portion of the rule is effective Oct. 1, 2010, while the remaining provisions go into effect July 6, said the Board.
Fee prohibitions apply to all institutions
More generally, the Regulation E final rule applies only to overdraft fees related to ATM and one-time debit card transactions and does not include those related to check, ACH, and recurring debit card transactions, the Board said.
The Board also clarified that financial institutions must provide confirmation of the consumer's opt-in choice in writing—or electronically, if the consumer agrees—before charging any overdraft fees.
June 28 , 2010