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
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.
Read the entire article.