The federal
financial institutions supervisory agencies today issued proposed guidance to
assist insured depository institutions in the responsible disclosure and
administration of overdraft protection services.
The
proposed guidance identifies concerns raised by institutions, financial
supervisors, and the public about the marketing, disclosure, and implementation
of overdraft protection programs. To
address these concerns, the proposed guidance:
1) seeks to ensure that financial institutions adopt
adequate policies and procedures to address the credit, operational, and other
risks associated with overdraft protection services; 2) alerts institutions
offering these services to the need to comply with all applicable federal and
state laws; and 3) sets forth examples of best practices that are currently
observed in, or recommended by, the industry.
The
proposal is being issued under the auspices of the Federal Financial
Institutions Examination Council (FFIEC) by its member agencies: the Board of Governors of the Federal
Reserve System; Federal Deposit Insurance Corporation; National Credit Union
Administration; Office of the Comptroller of the Currency; and Office of Thrift
Supervision.
Comment on
the proposed guidance is requested within 60 days of its publication in the
Federal Register, which is expected shortly.
The Federal Register notice is attached.
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Attachment
Media Contacts:
Federal Reserve Susan
Stawick (202) 452-2955
FDIC David Barr (202) 898-6993
NCUA Cherie
Umbel (703)
518-6330
OCC Dean DeBuck (202) 874-5770
OTS Erin Hickman (202)
906-6677