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FIRST BANK OF TENNESSEE
From: David Forsten [mailto:dforsten@firstbanktn.com]
Sent: Friday, July 30, 2004 11:16 AM
To: Comments
Subject: Interagency Guidance on Overdraft Protection
I believe that regulatory concern over ODP programs is unfounded and
a
diversion of resources from more critical issues. After reading the
document on Interagency Guidelines on Overdraft Protection Programs, I
am
concerned that creeping federalism is intent on creating a problem in
order
to create more regulation and bureaucratic infrastructure to oversee the
solution. This continuing increase in compliance burden on community
banking is having a detrimental effect on the ability of community banks
to
survive.
The safety and soundness issue of excess credit risk is bogus. If
every
one of our ODP customers overdrew to the maximum, the total exposure is
about 12% of our capital. We have several loans which exceed that
amount.
If these account were to be charged off, we would have had problems long
before since many of these customers are also borrowers. To infer that
the
current examination force cannot use existing examination procedures to
determine when notable risk exists is an insult to their competence.
Our customers want to be treated as a person, not a cell in a matrix.
To
require a policy that dictates accounts be charged off at thirty days
would
remove our ability to treat customers on a case by case basis. The
amounts
carried for longer periods would be small and answerable to the
examination
team.
I believe that the agencies have fallen into philosophies destined to
undermine individual freedom in America. First is the philosophy of
punishing the innocent to get the guilty. Reg CC is an example of this.
Before the regulation, we never put holds on checks, now we do. Our
customers lost. We lost. Who gained from this Regulation? The second is
the philosophy that someone else is responsible for my actions. If I am
charged fees for overdrawing my account and I don’t like it, I should
stop
overdrawing my account! Customers have a choice. The more restrictions
you
place on us in the form of policy, regulation, and paperwork, the less
choice we will be able to provide our customers.
It is my hope that we will this day reverse the current trend that
harms
the healthy tissue to get at the diseased tissue.
David Forsten, Cashier
First Bank of Tennessee
Spring City, Tennessee
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