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Due to the high risks of consumer harm, all prudential regulators scrutinize overdraft practices whether an institution honors overdrafts via an ad hoc or automated approach. A proper understanding of the applicable regulations is critical to ensuring a successful, compliant approach to overdraft management. Not only must disclosures accurately describe overdraft practices, but retail staff must accurately represent the account terms during verbal discussions. Systems must be properly calibrated to assess fees and pay/return items consistent with disclosed terms. The requirements for a compliant program cross deposit, lending, and accounting requirements Operations staff may or may not be familiar with all the applicable regulations.
This webinar will benefit operations staff, compliance officers and auditors by guiding participants through each of the requirements by regulation or guidance and will highlight areas of risk. We will consider enforcement actions relating to overdrafts so that we can learn from previous missteps. Participants will be provided with tips and strategies for monitoring or auditing compliance with the complex requirements.
In this two-hour session, Brian will cover:
- Regulation DD disclosures and advertising
- Parameter analysis for correct fee assessment
- “Double dipping” of fees and the risks associated with doing so
- Regulation E – Opt-In
- The impact of “debit card authorizations” on overdraft fees
- Unfair Deceptive or Abusive Acts and Practice pitfalls
- Regulation Z – Repayment plans
- Regulation B – Overdraft limits and fee structure
- Fair Credit Reporting Act – Negative information reporting, direct disputes, and adverse action
- Fair Debt Collection Practices Act – Third party oversight and collection best practices
- Consideration of overdraft balances and limits on the Call Report and Allowance for Loan Losses
- 2005 Joint Agency Guidance on Overdraft Programs
- 2010 FDIC Subsequent Guidance on Overdraft Programs
Written materials will be provided for participants to refer to during the presentation.
2005 Joint Overdraft Guidance
CFPB TD Bank Settlement
Regions Bank Consent Order
CFPB Available vs. Ledger
FDIC Overdraft Fees
2010 FDIC Guidance