The Federal Reserve Board ("FRB") (25) undertook initial regulation of overdraft protection
programs before the CFPB was created.
Beginning next month, businesses can link from any savings or deposit account to a checking account as part of overdraft protection
with no charge.
Fidel Gonzalez, president/CEO of FICU, said the lawsuit is bogus because when the credit union implemented its overdraft protection
program in 2012, it used another company, not JMFA.
More than half (52 percent) of community banks say that they are currently offering lines of credit in place of the overdraft protection
Most customers, though, will probably welcome the overdraft protection
because they don't want their debit cards to be declined, said Don Woodland, executive vice president and director of the Graduate School of Banking at Louisiana State University.
Legislation pending in Congress would require that consumers sign up for overdraft protection
, rather than being enrolled in such programs automatically.
A Bar committee is working on a recommendation that would clarify that attorneys are prohibited from having overdraft protection
on their trust accounts.
The amendments to Regulation DD, which implements the Truth in Savings Act, in part address the service often referred to as bounced-check protection or courtesy overdraft protection
Interagency Joint Guidance on Overdraft Protection
The Federal Financial Institutions Examination Council (FFIEC) proposed guidance to help insured depository institutions improve their disclosure to customers with overdraft protection
Because the bank had not formally extended overdraft protection
to the campaign account, the FEC considered the overdrafts to be campaign contributions--which banks are prohibited from making under the Federal Election Campaign Act of 1971.
Developed in association with Wirecard, the digital bank will provide customers with a bank account, debit card, overdraft protection
and an interest-bearing savings account.