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Inactive Financial Institution Letters
Interagency Guidance On Overdraft Protection
After consideration by the Federal Financial Institutions Examination Council, the Federal Deposit Insurance Corporation (FDIC), the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Office of Thrift Supervision, and the National Credit Union Administration are seeking comment on the attached guidance on overdraft protection. Comments are due by August 6, 2004.
Overdrawn accounts and ad-hoc overdraft approvals have always been part of bank deposit programs. For many years, overdrafts have been managed by tying them to other deposit accounts, lines of credit or credit cards. Recently, however, programs have been developed to improve the automation of overdrawn accounts that previously had been handled on a discretionary, ad-hoc basis. These programs are frequently purchased from a vendor and are advertised to the consumer. While both the availability and customer acceptance of these overdraft protection services have increased, aspects of the marketing, disclosure and implementation of some of these programs have raised concerns with the agencies.
The guidance discusses:
The agencies request comment on all aspects of the guidance, in particular as to whether the recommended charge-off time frame is appropriate and whether there are other considerations not addressed.
Written comments may be sent to Robert E. Feldman, Executive Secretary, Attention: Comments/Executive Secretary Section, Federal Deposit Insurance Corporation, 550 17th Street, NW, Washington, DC 20429. Comments also may be mailed electronically to email@example.com. Comments may be hand-delivered to the guard station at the rear of the 17th Street building (located on F Street) on business days between 7 a.m. and 5 p.m. Comments also may be faxed to (202) 898–3838.
For more information, please contact Patricia I. Cashman, Senior Policy Analyst, Division of Supervision and Consumer Protection, on (202) 898-6534; or Mark Mellon, Counsel in the Legal Division, on (202) 898-3884.
For your reference, FDIC Financial Institution Letters may be accessed on the FDIC’s Web site at www.fdic.gov/news/news/financial/2004/index.html. To learn how to automatically receive FDIC Financial Institution Letters through e-mail, please visit www.fdic.gov/news/news/announcements/index.html.
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Distribution: FDIC-Supervised Banks (Commercial and Savings)
NOTE: Paper copies of FDIC financial institution letters may be obtained through the FDIC’s Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (1-877-275-3342 or (703) 562-2200).
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