• Federal Reserve Issues Final Rule on Overdraft Fees
  • November 30, 2009 | Authors: Beth S. DeSimone; Jeremy W. Hochberg; Brian P. Larkin; Michael B. Mierzewski
  • Law Firm: Arnold & Porter LLP - Washington Office
  • New regulations issued by the Board of Governors of the Federal Reserve System (Federal Reserve) will prevent institutions from charging overdraft service fees on ATM or one-time debit card transactions without the opt-in consent of a consumer. This change is contained in a final rule (Final Rule), published in the Federal Registrar on November 17, 2009, amending Regulation E, which implements the Electronic Fund Transfer Act, 15 U.S.C. 1693 et seq. The Final Rule also will require institutions to provide consumers with notice of overdraft services, and to obtain affirmative consent only before charging fees for covering overdrafts on ATM and one-time debit card transactions. The Final Rule also creates a model form for obtaining a consumer’s opt-in consent. The Final Rule becomes effective 60 days after publication in the Federal Registrar (i.e., January 16, 2010), with a mandatory compliance date of July 1, 2010. www.arnoldporter.com