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Finding Solutions to the New Reg E Overdraft Rules

In November, the Federal Reserve Board issued final rules — Regulation E — that prohibit financial institutions from charging consumers fees for paying overdrafts on ATM and one-time debit card transactions unless a consumer consents, or opts in, to be charged a fee for those types of transactions. The ruling, which becomes effective July 1, 2010, also requires an opt-in form that contains specific information on the institution’s overdraft practices and policies, including the fees associated with the services, and the consumer’s options.

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