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7/25/24, 11:04 AM FRB: Press Release--Request for comment on amendments addressing overdraft protection, Regulation DD--May 28, 2004 Release Date: May 28, 2004 For immediate release The Federal Reserve Board on Friday published proposed amendments to Regulation DD, which implements the Truth in Savings Act, and the regulation's official staff commentary to address concerns about the uniformity and adequacy of information provided to consumers when they overdraw their accounts. The proposed amendments, in part, address a specific service offered by depository institutions, commonly referred to as "bounced-check protection" or "courtesy overdraft protection." Depository institutions sometimes offer courtesy overdraft protection to deposit account customers as an alternative to a traditional overdraft line of credit. To address concerns about the marketing of this service, a proposed revision to the regulation would expand the prohibition against misleading advertisements to cover communications with current customers about existing accounts. The staff commentary would provide examples. Other proposed revisions to Regulation DD would require additional fee and other disclosures about courtesy overdraft services, including in advertisements. The Board is also proposing amendments of general applicability that would require institutions to provide more uniform disclosures about overdraft and returned-item fees. In addition, the member agencies of the Federal Financial Institutions Examination Council are publishing today proposed guidance to assist insured depository institutions in the responsible disclosure and administration of overdraft protection services. The Board's Federal Register notice containing the proposed amendments to Regulation DD is attached. The comment period ends 60 days after publication in the Federal Register. Attachment (64 KB PDF) 2004 Banking and consumer regulatory policy Home | News and events Accessibility Last update: May 28, 2004 https://www.federalreserve.gov/boarddocs/press/bcreg/2004/200405282/default.htm 1/1