Office of Thrift Supervision

Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
National Credit Union Administration
Office of the Comptroller of the Currency
Office of Thrift Supervision

Agencies Issue Proposed Guidance on Overdraft Protection Programs

The federal financial institutions supervisory agencies today issued proposed guidance to assist insured depository institutions in the responsible disclosure and administration of overdraft protection services.

The proposed guidance identifies concerns raised by institutions, financial supervisors and the public about the marketing, disclosure and implementation of overdraft protection programs. To address these concerns, the proposed guidance:

1) seeks to ensure that financial institutions adopt adequate policies and procedures to address the credit, operational, and other risks associated with overdraft protection services;

2) alerts institutions offering these services to the need to comply with all applicable federal and state laws; and

3) sets forth examples of best practices that are currently observed in, or recommended by, the industry.

Comment on the proposed guidance is requested within 60 days of its publication in the Federal Register, which is expected shortly. The Federal Register notice is attached.

Media Contacts:

Federal Reserve:	Susan Stawick	202  452-2955
FDIC:	David Barr	202  898-6992
NCUA:	Cherie Umbel	703  518-6330
OCC:	Dean DeBuck	202  874-5770
OTS:	Erin Hickman	202  906-6913

The Office of Thrift Supervision (OTS), a bureau of the U.S. Treasury, regulates and supervises the nation's thrift industry. OTS's mission is to ensure the safety and soundness of thrift institutions and to support their role as home mortgage lenders and providers of other community credit and financial services. For copies of news releases or other documents visit the OTS web page at www.ots.treas.gov.

Created: Friday, 5/28/2004