Similar to skipping annual doctor and dentist checkups, putting off regular overdraft program disclosure evaluations until the next rule change or updated guidance can result in major and costly problems. It’s nearly always easier and less expensive to prevent an issue rather than try to cure it.
Although the most recent formal guidance took place in 2010, much has occurred in the overdraft space since then. Some community banks and credit unions made temporary changes to their overdraft programs during the pandemic. Meanwhile, increased focus on overdraft fees by the media and legislators has put this financial service in the spotlight, inviting increased scrutiny.
When was the last time you took a formal, objective look at your overdraft solution disclosures and procedures?
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