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Final
Rule on Reg E Requires Opt In (cont'd)
I.
II.
Even if the consumer opts-in to the
institution’s
overdraft service for ATM
and one-time debit card
transactions, the
institution is not
required to
authorize or pay an
overdraft on those transactions.
II.
III.
There is no exception to allow overdraft fees to be c
charged for payment of a
transaction that overdraws
the consumer’s account
where authorization was not
requested by the merchant
or other party.
III.
IV.
Implementation of consumer’s affirmative consent
·
Rule permits it to be done at the account level, by setting
up account coding that indicates whether or not the consumer has
opted in; or
·
May implement via a back-room process by opening a different
account for consumers who have not provided affirmative consent.
IV.
V. Conditioning payment
A
financial institution cannot:
·
Condition
the payment of any overdrafts for checks, ACH transactions, and
other types of transactions on the consumer’s opt-in to the
institution’s payment of ATM and one-time debit card transactions
pursuant to the institutions overdraft services; or
·
Decline to
pay checks, ACH transaction, and other types of transactions that
overdraw the consumer’s account because the consumer has not
opted-in to the institution’s overdraft service for ATM and
one-time debit card transactions.
V.
VI. Same account terms, conditions, and features
·
Consumers
who do not opt-in to the overdraft service for ATM and one-time
debit card transactions must be given the same account terms,
conditions, and features as those who do affirmatively consent, EXCEPT
·
For the overdraft service for ATM and one-time debit card
transactions.
·
See Commentary comment 17(b)(3) for examples of terms that
may not vary based on the consumer’s decision not to opt-in.
VI.
VII. If a consumer provides his/her checking account
number to authorize an ACH
transfer on-line or by
telephone, the institution
would be permitted to pay
the item if it overdraws the
account and to assess a
fee, even if the consumer has not opted-in
to the
payment of overdrafts for ATM or one-time
debit
card transactions.
VII.
VIII.
A financial institution may pay overdrafts for ATM
and one-time
debit card transactions even if the
consumer has
not opted-in to the institution’s
overdraft
service. The financial institution cannot
assess a fee
or charge for paying the overdraft in this
case. The
institution can, however, debit the
consumer’s
account for the overdraft amount,
provided state law
permits.
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