The Federal Reserve Board announced final rules prohibiting institutions from charging fees for overdrafts on ATM and one-time debit card transactions.
The final rules will enable consumers to limit the costs of overdraft services by providing consumers a choice regarding their institution’s payment of overdrafts for ATM and one-time debit card transactions. Financial institutions will be required to provide a clear disclosure of the fees and terms associated with the institutions’ overdraft service.
Consumers may opt in or affirmatively consent, to the institution’s overdraft service for ATM and one-time debit card transactions, before overdraft fees may be assessed on the account. The rule also provides consumers an ongoing right to revoke consent.
For further information, including the mandatory compliance date, click here.