Agency Guidance on Overdraft Protection Programs

CUNA Regulatory Advocacy
March 15, 2005

The federal financial institution regulators, including the National Credit Union Administration (NCUA), have recently issued guidance to assist financial institutions regarding the responsible marketing, disclosure, and administration of overdraft protection services. The guidance is intended to:

· Ensure that financial institutions adopt adequate policies and procedures to address the credit, operational, and other risks associated with overdraft protection services.

· Alert institutions offering these services of the need to comply with all applicable federal and state laws.

· Provide examples of best practices currently used or recommended by the industry.

Click here for CUNA's Final Rule Analysis, which provides additional information.