Overdraft Policy
This Overdraft Policy addresses the overdraft (OD) approval process and related overdraft protection products and services of a bank, credit union, or other type of financial institution to provide a foundation of safe and sound credit decisions and adherence to all applicable laws, rules, and regulations.
Table of Contents
- Purpose and Contents – Topic 1
- Policy Statement – Topic 2
- Federal Reserve Daylight Credit Policies – Topic 3
- Risk Management of Overdraft Protection Programs – Topic 4
- Responsibilities and Approval Authority – Topic 5
- Overdraft and Returned Item Fees and Notices – Topic 6
- Audit Policy – Topic 7
- Staff Training – Topic 8
- Retention of Documentation – Topic 9
Includes the following form templates:
- Overdraft Approval Form (1 page)
- Overdraft Service Consent Form (1 Page)
Recent updates to this product:
01/02/25 Update
CFPB Final Rule – Overdraft Lending: Very Large Financial Institutions
03/18/24 Update
Eliminate and/or modify references to the term “Troubled Debt Restructuring” (TDR) with a “Borrower Experiencing Financial Difficulty.”
07/03/23 Update
FDIC FIL-32-2023 – FDIC Clarifying Supervisory Approach Regarding Supervisory Guidance on Multiple Re-Presentment NSF Fees
05/15/23 Update
FDIC FIL-19-2023 – Supervisory Guidance on Charging Overdraft Fees for Authorize Positive, Settle Negative Transactions
OCC Bulletin 2023-12 – Overdraft Protection Programs: Risk Management Practices
01/03/23 Update
Federal Reserve Press Release – Federal Reserve Board Issues Technical Updates to its Policy Governing the Provision of Intraday Credit in Accounts at Federal Reserve Banks
12/15/22 Update
Federal Reserve Press Release – Federal Reserve Board Finalizes Clarifying and Technical Updates to its Policy on Governing the Provision of Intraday Credit to Healthy Depository Institutions with Accounts at the Federal Reserve Banks
11/15/22 Update
CFPB Release – CFPB Issues Guidance to Help Banks Avoid Charging Illegal Junk Fees On Deposit Accounts
This Overdraft Policy (approximately 62 pages) is available to purchase from BankPolicies.com in Microsoft® Word format.
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