What are the Reg E changes?
Under the revised regulations, banks are prohibited from assessing an overdraft fee for paying ATM and one-time, non-recurring, debit card (POS) transactions that overdraw a consumer’s account, unless the consumer has opted-in. (An overdraft service is any service under which a financial institution assesses a fee or charge on a consumer’s account, held by the institution, for paying a transaction when the consumer has insufficient or unavailable funds in the account.) The new rule does not apply to recurring debit card transactions (e.g., monthly health club membership fees). If the customer does not “opt-in” all ATM and one-time debit card (POS) transactions that overdraw the account could be denied.