Alert February 10, 2009

FRB Publishes Regulation DD Final Rule on Overdraft Fee Disclosures

The FRB published a final rule amending Regulation DD to require all banks to disclose aggregate overdraft fees on periodic statements, not just banks that promote the payment of overdrafts. The rule includes format requirements aimed at making the aggregate fee disclosures more effective and noticeable to consumers. The rule also requires banks that provide account balance information through an automated system to disclose the amount of funds available for the consumer’s immediate use or withdrawal, without including additional funds the bank may provide to cover overdrafts. The rule is effective on January 1, 2010. Click here for the rule.