PRODUCTS: Implications of the New Overdraft-Fee Rules
Come July 1, new rules will go into effect regarding overdraft fees. Here’s an overview of the new rules, courtesy of the Federal Reserve Bank of Atlanta:
The results of consumer tests conducted by the Federal Reserve Board show that most consumers prefer not to be enrolled in overdraft services for ATM and one-time debit card transactions unless they expressly opt in. At the same time, testing shows that most consumers want overdraft services to cover important bills, such as checks they use to pay rent, utilities, and telephone bills.
Where does this leave the overdraft product? What strikes me is that this forced communication could become a fine marketing opportunity for banks. The call here is to be creative instituting Reg E in a way that turns a potential negative into a positive.
