KEYSTONE BANK
July 31, 2004
Mr. Robert E. Feldman, Executive Secretary
Attention: Comments
Federal Deposit Insurance Corporation
550 17th Street, NW
Washington, DC 20429
In re Interagency Guidance on Overdraft Protection Programs, FIL-63-2004
Dear Mr. Feldman:
We respectfully set forth our comments in this matter.
We bankers are continually and consistently concerned with the safety
and soundness of our institutions. Though it is our general practice
to charge off overdrafts with duration of 30 days, it seems inappropriate
and in the nature of micromanaging to impose an arbitrary rule in this
area. Banks should be relied upon with a degree of comfort by the regulators
to be both reasonable and safe in determining their policies and procedures
with respect to the nominal overdrafts resulting from overdraft protection
programs.
A substantial portion of this Interagency Guidance reiterates existing
statutory and regulatory law. We sincerely believe that the mere mention
that the Truth in Lending Act, Equal Credit Opportunity Act, Electronic
Fund Transfer Act, and their respective regulations are relevant and
must be considered, would be helpful, but the synopsis thereof set forth
in this Interagency Guidance requires all of us bankers to take the additional
time to read it. Our present body of statutory and regulatory law is
vast indeed; you would do us a great favor by merely referring to it,
as and when appropriate.
We do commend the
advice set forth under Best Practices. Though it seems a bit
like trying to legislate
ethics and morality, we have seen advertised "Free
Overdraft Protection"-clearly misleading. Though the marketplace
should, in theory, weed out the existence of such marketing, your, Best
Practices gives appropriate guidance for both bankers and examiners
in the field.
Yours very truly,
Robert L. Levin
President
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