Overdraft Protection Programs

The federal bank and credit union regulatory agencies have announced final joint guidance to assist institutions in the disclosure and administration of overdraft protection programs.

In response to concerns about the marketing, disclosure, and implementation of these programs, the agencies published for comment proposed interagency guidance on overdraft protection programs in June 2004. The final joint guidance responds to comments received by consumer and community groups, individual consumers, depository institutions, trade associations, vendors offering overdraft protection products, other industry representatives, and state agencies. The final joint guidance contains three primary sections: Safety and Soundness Considerations; Legal Risks; and Best Practices.

The text of the Federal Register notice (PDF) is available online.