Overdraft Outlook: Litigation Lessons, Avoiding Violations & Best Practices

Registration Options and Pricing

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Friday, October 21, 2016

8:00 am – 9:30 am PT
9:00 am – 10:30 am MT
10:00 am – 11:30 am CT
11:00 am – 12:30 pm ET

Risks related to overdraft protection continue to increase. The Consumer Financial Protection Bureau has identified misleading and deceptive practices in past examinations and is preparing to further regulate overdraft protection practices. Further, banks and credit unions throughout the country have become targets for class action lawsuits alleging improper overdraft protection practices. These lawsuits allege a lack of transparency and disclosure about the institution’s overdraft program and make various claims related to compliance with the Electronic Fund Transfer Act (implemented by Regulation E). By understanding the CFPB’s focus and the legal claims being made, banks can proactively enhance the information provided to customers about overdraft protection – including clearly explaining when overdraft or NSF fees will be charged.

The first step to managing litigation risks is to ensure that your bank has publicly informed customers how your overdraft protection program works. By reviewing and enhancing their overdraft protection information, banks can reduce the chance of being the next target. This webinar will analyze the most-recent risks and best practices to help reduce the risks related to offering overdraft protection.

Continuing Education: Attendance verification for CE credits upon request


  • Recent issues and new risks related to overdraft protection
  • Analysis of a checking account’s available balance versus actual balance, and examples of when overdraft protection fees will be charged
  • Signature versus PIN debit card transactions and the impact of authorization holds on an accountholder’s available balance
  • Best practices to inform customers of how your overdraft protection program works, including the various options and priority levels for linked accounts, lines of credit, and overdraft protection
  • Importance of using Regulation E’s model overdraft opt-in disclosure for ATM and one-time debit card transactions

    • Sample language and examples to explain to customers how their available balance will be calculated and when an overdraft fee will be charged
    • List of possible topics and FAQs to add to a bank’s website to reduce risks
    • Employee training log
    • Quiz you can administer to measure staff learning and a separate answer key


This informative session is designed for operations, compliance, and audit employees.

PLEASE NOTE:    Webinar content is subject to copyright and intended for your individual financial institution’s use only.