@neveroptedin No consent, no fee — your bank can only charge overdraft on everyday debit swipes if you opted in first. Ever seen a fee you never agreed ... See more
The claim
Under Regulation E (12 CFR § 1005.17(b)(1)), a financial institution may not assess a fee or charge for paying an ATM or one-time debit card transaction pursuant to its overdraft service unless it has provided a segregated written notice describing the service, given a reasonable opportunity to opt in, obtained the accountholder's affirmative consent, and provided written confirmation that states the right to revoke that consent at any time.
The receipt
Except as provided under paragraph (c) of this section, a financial institution holding a consumer's account shall not assess a fee or charge on a consumer's account for paying an ATM or one-time debit card transaction pursuant to the institution's overdraft service, unless the institution: (i) Provides the consumer with a notice in writing, or if the consumer agrees, electronically, segregated from all other information, describing the institution's overdraft service; (ii) Provides a reasonable opportunity for the consumer to affirmatively consent, or opt in, to the service for ATM and one-time debit card transactions; (iii) Obtains the consumer's affirmative consent, or opt-in, to the institution's payment of ATM or one-time debit card transactions; and (iv) Provides the consumer with confirmation of the consumer's consent in writing, or if the consumer agrees, electronically, which includes a statement informing the consumer of the right to revoke such consent.
A consumer may also revoke consent at any time in the manner made available to the consumer for providing consent. A financial institution must implement a consumer's revocation of consent as soon as reasonably practicable.
A financial institution shall not: ... (ii) Decline to pay checks, ACH transactions, and other types of transactions that overdraw the consumer's account because the consumer has not affirmatively consented to the institution's overdraft service for ATM and one-time debit card transactions.
What the rule doesn't cover
The opt-in requirement is about ATM and one-time debit card transactions. Checks, ACH payments and recurring debit payments aren't covered by it. And the rule is about fees for paying those transactions through the bank's overdraft service — linked-account transfers and overdraft lines of credit are a separate thing.
What you can do
Check the written confirmation of your overdraft choice — the rule says it has to mention your right to revoke — and ask your bank how revoking works, since the rule ties it to the same way consent was given.
Sources: 12 CFR § 1005.17 (Regulation E)
Consumer info, not financial advice.