Have you Kicked the Tires on Your Overdraft Program Lately?

In light of the recent TD Bank Consent Order concerning its overdraft activities, it may be a good time to revisit your institution’s overdraft program.  Overdraft programs continue to be a major focus of the regulators and are on Accume’s compliance “hot topics” honor roll!

So, what did TD Bank do wrong?  The CFPB examination disclosed the following violations regarding TD’s overdraft program, deeming it to have “deceptive” enrollment practices:

  • Failure to obtain the consumers’ affirmative consent to enroll in its overdraft-protection service and subsequently charging those consumers overdraft fees regarding that service;
  • Engaging in abusive acts or practices while offering the program to consumers in person; deceptive acts or practices while offering DCA to consumers in person, over the phone, and through mailed solicitations;
  • Failure to establish and implement reasonable written policies and procedures concerning the accuracy and integrity of information the Bank furnished to consumer reporting agencies; and
  • Failure to conduct timely investigations of indirect disputes concerning consumer reporting agency furnishing.