Course description

It is no longer enough to disclose that your bank will impose a fee for an overdraft created by “check, in-person withdrawal, ATM withdrawal or other electronic means.” When you describe an overdraft service, details and explanations are important, and omitting one of those details can expose the bank to litigation and regulatory criticism. Even when you get all that right, some of your practices may be challenged as “unfair, deceptive, or abusive” by regulators or in the courts.

How does your bank describe its overdraft program to consumers? What account balance do you use to authorize ATM withdrawals and debit card purchases? Do you use the same balance to decide when an item has overdrawn an account to trigger an overdraft fee? Is that balance reduced by known pending “must pay” items? Do you explain to customers what those “must pay” items are? What about fees for returning a check unpaid, or returning that same payment twice or even three times? Does your bank even KNOW when it gets a repeat presentment?

In this special 90-minute presentation, we will review all the recent developments related to overdrafts and overdraft fees, including two of the CFPB’s most recent targets – a fee imposed on a depositor when a bank charges back to their account a check returned by the drawee bank, and overdraft fees in general when imposed by the biggest banks and credit unions (for now). We’ll review the issues and the reasoning behind regulatory concerns for what were – until the last few years – acceptable practices and discuss actions banks can take to address those concerns and avoid regulatory criticism or customer lawsuits.



Compliance officers, operations management, customer contact personnel



John Burnett

John Burnett is a 1979 alumnus of the ABA National Compliance School, and served on its faculty for several years. He graduated with honors with the Class of 1990 from ABA's Stonier Graduate School of Banking, and is also a graduate of the BAIs and the Massachusetts Banker Associations Schools of Banking.John began his banking career in high school when he started as a teller at a $15 million bank that didn't have account numbers for its checking accounts (he says they actually filed by signature!) He joined Cape Cod Bank and Trust Company in 1971 and assumed the position of Compliance Officer in 1976. He also served as corporate secretary and secretary of CCBT's Board of Directors, as well as Clerk of the bank's holding company. John joined Glia Group, Inc. and the team in June, 2004. He is a frequent presenter of BOL Learning Connect webinars, and at BOL Conferences events.He was a member of the Massachusetts Bankers Association Legal and Regulatory Compliance Committee, and a former member of the American Bankers Association Compliance Executive Committee and NCS/NGCS Advisory Board. He served on ABA's Truth in Savings Task Force as Regulation DD was being written, and has served on several ABA and Massachusetts Bankers seminar panels.

Course curriculum

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