To All Depository Institutions and Others Concerned in the Second Federal Reserve District:

The federal financial institutions supervisory agencies have issued proposed guidance to assist insured depository institutions in the responsible disclosure and administration of overdraft protection services.

The proposed guidance identifies concerns raised by institutions, financial supervisors, and the public about the marketing, disclosure, and implementation of overdraft protection programs. The proposed guidance:

(1) seeks to ensure that financial institutions adopt adequate policies and procedures to address the credit, operational, and other risks associated with overdraft protections services;
(2) alerts institutions offering these services to the need to comply with all applicable federal and state laws; and
(3) sets forth examples of best practices that are currently observed in, or recommended by, the industry.

The proposal is being issued under the auspices of the Federal Financial Institutions Examination Council (FFIEC) by its member agencies: the Federal Reserve Board; Federal Deposit Insurance Corporation; National Credit Union Administration; Office of the Comptroller of the Currency; and Office of Thrift Supervision.

Comments on the proposed guidance are requested within 60 days of its publication in the Federal Register, which is expected shortly.

Press release
Interagency Guidance

Contact:
Maryann Campbell
Supervising Examiner
Legal and Compliance Risk Department
maryann.campbell@ny.frb.org

Contact:
Public Affairs
(212) 720-6130
general.info@ny.frb.org