REG E
DEFINE REG E
This regulation carries out the purposes of the Electronic Fund Transfer Act, which establishes the basic rights, liabilities, and responsibilities of consumers who use electronic fund services and of financial institutions that offer these services.
WHAT TYPE OF TRANSACTIONS FALL UNDER REG E OPT IN/OUT?
ONE TIME DEBIT CARD PURCHASES,
ATM WITHDRAWALS
TRUE OR FALSE?
A DISCLOSURE IS REQUIRED?
TRUE.
DURING OPT IN (A9 FORM)
TRUE OR FALSE?
YOU ARE AUTOMATICALLY ENROLLED IN AUTOMATIC OVERDRAFT DURING ACCOUNT OPENING?
TRUE
WHAT ARE SOME SITUATIONS YOU RECOGNIZE WOULD BE IMPORTANT TO DISCUSS OVERDRAFT SERVICES WITH YOUR CUSTOMER?
DURING ACCOUNT OPENING, CUSTOMER EXPERIENCES A DECLINED DEBIT CARD, CUSTOMER ASKS ABOUT DEBIT CARD OR ATM COVERAGE.
WHY IS REG E BENEFICIAL TO THE BANK?
FEES ALLOWED UNDER REG E, SUCH AS OVERDRAFT CHARGES, CAN PROVIDE AN ADDITIONAL SOURCE OF INCOME FOR THE INSTITUTION.
WHAT ARE THE FEE IMPLICATIONS FOR CUSTOMERS WHO OVERDRAW THEIR ACCOUNT?
EACH OVERDRAFT ITEM COSTS $30
TRUE OR FALSE?
IF A CUSTOMER OPTS IN REG E , THE BANKS IS REQUIRED TO PAY THAT ITEM.
FALSE
EVEN IF A CUSTOMERS OPTS IN,THE BANK IS NOT REQUIRED TO PAY THE TRANSACTION. COVERING AN ITEM IS ALWAYS A THE BANKS DISCRETION.
WHAT TRANSACTIONS APPLY TO AUTOMATIC OVERDRAFT?
CHECKS, ACH DEBITS AND RECURRING DEBIT CRAD PURCHASES
WHAT IS ANOTHER OPTION TO AVOID OVERDRAFT FEES?
DRAW ACCOUNTS
WHAT IS THE DAILY FEE CAP FOR REG E?
$180
EXPLAIN REG E OPT IN/OUT TO A CUSTOMER UNFAMILIAR WITH IT?
"REG E GIVES YOU THE CHOICE TO ALLOW THE AUTOMATIC OVERDRAFT SERVICE TO PAY ONE TIME DEBIT CARD PURCHASES AND ATM WITHDRAWALS. OVERDRAFT FEES WOULD APPLY"
WHAT IS THE PURPOSE OF THE A9 FORM?
TO REVIEW CARTER BANKS OVERDRAFT OPTIONS WITH OUT CUSTOMERS.
THIS IS ALSO WHERE THE CONSUMER WILL SIGN, DOCUMENTING IF THEY OPT INTO REG E FOR DEBIT CARD.
TRUE OR FALSE?
A DISCLOSURE IS REQUIRED.
TRUE.
DURING OPT IN AND OUT!
TRUE OR FALSE?
THE FOLLOWING ARE ELIIGBLE TO BE OPTED INTO REG E.
SAVINGS, MONEY MARKET, & NON-PROFIT.
FALSE.
DOES REG E COVER BUSINESS ACCOUNTS?
REG E IN ITS ENTIRETY DOES NOT APPLY TO BUSINESSES. HOWEVER, A BUSINESS ACCOUNT CAN OPT INTO REG E IN ORDER FOR THE SYSTEM TO PAY THE DEBIT CARD TRANSACTION. BECAUSE IT IS SPECIFICALLY FOR A DEBIT CARD, THEY MUST OPT IN USING THE SAME FORM.
WHERE IN DNA CAN YOU GO SEE IF SOMEONE IS OPTED IN
IN THE DEPOSIT ACCOUNT MAINTENANCE SCREEN, CLICK MAINTENANCE> ACCOUNT FIELDS.
TRUE OR FALSE?
RECURRING DEBITS WILL NOT BE CHARGED IF OPTED OUT OF REG E.
FALSE
If the account has insufficient funds, a recurring debit transaction WILL BE charged a $30 Insufficient Funds Charge Paid fee whether opted in/out. (HULU/NETFLIX/SPOTIFY)
TRUE OR FALSE?
A CUSTOMER CAN ENROLL IN OVERDRAFT SERVICES IF THEIR ACCOUNT IS OVERDRAWN?
FALSE
Customers CANNOT have a negative balance when enrolling in OD services. Should they have a negative balance, they will need to bring the balance current before enrolling.
DOES OVERDRAFT ACTVITY IMPACT CREDIT SCORES?
OVERDRAFTS DONT AFFECT CREDIT SCORES, HOWEVER UNPAID BALANCES ARE REPORTED FOR COLLECTIONS. WE ALWAYS ENCOURAGE CUSTOMERS TO MONITOR THIER ACCOUNTS AND USE OVERDRAFTS SERCICES AS A BACKUP, NOT A HABIT.