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Financial Services Litigation Bulletin-March 2010
Amendment to Electronic Fund Transfer Act Restricts Overdraft Fees Effective January 19, 2010 With Mandatory Compliance Date of July 1, 2010

03/09/2010

The Federal Reserve Board has recently amended Regulation E as well as the official staff commentary for Regulation E, which is the implementing regulation for the Electronic Fund Transfer Act. The Amendment limits the ability of a financial institution to assess an overdraft fee for paying automated teller machine (ATM) and one-time debit card transactions that overdraw a consumer's account, unless the consumer affirmatively consents, or opts-in, to the institution's payment of overdrafts for these transactions.

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