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Keeping the bounce within bounds: a review of what marketers need to know in light of the recent "final guidelines" from federal banking regulators.(overdraft protection)
- Article from:
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Bank Marketing
- Article date:
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May 1, 2005
- Author:
- Feddis, Nessa
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Copyright informationCOPYRIGHT 2005 Bank Marketing Assn. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Whether your bank promotes a formal "bounced check protection" program that advises consumers of a "discretionary limit" or adopts a more traditional approach of paying overdrafts on a discretionary basis without disclosing a limit, your institution needs to be aware of the recent guidelines on overdrafts produced by the banking regulatory agencies.
While much in the final guidelines mirrors common bank practices, there are some surprising elements. For example, the guidelines address concerns that consumers may not understand that they can overdraw their account using a debit card, even though the transaction was approved.
The guidelines also respond to concerns that ...