What do we need to do?
Generally, the new rule prohibits an institution that holds a consumer's account from assessing any fee or charge on a consumer's account for paying an ATM or a one-time debit card transaction as part of the institution's overdraft service, unless:
- The consumer is provided with a notice in writing, (or if the consumer agrees, electronically) segregated from all other information, explaining the institution's overdraft service;
- The consumer is given a reasonable opportunity to affirmatively consent (opt in);
- The consumer affirmatively consents (opts in) to the service; and
- The institution provides the consumer with confirmation of the consumer's consent in writing (or if the consumer agrees, electronically), which includes a statement informing the consumer of the right to revoke such consent.
When should we start?
As soon as possible. A financial institution may provide the notice required by §205.17(b)(1)(i) and obtain the consumer's affirmative consent to the financial institution's overdraft service for ATM and one-time debit card transactions before July 1, 2010, provided that the financial institution complies with all of the requirements of §205.17. (Comment 205.17(c)-1)
Regulation information provided was obtained from: