Q: Can our home banking website display a pop-up screen that
requires members to opt-in to the credit union’s overdraft protection (ODP) service for ATM and
one-time debit card transactions before completing the online sign-up process?
A: No. Reg E requires
a credit union to provide an opt-in notice and
obtain the member's affirmative consent before charging any fees for paying ATM
and one-time debit card overdrafts. Consent must be voluntary, so
a website cannot be set up to compel a member to make an opt-in choice before
going any further in the sign-up process. The credit union can, however, add an “ask me later” option to
remind members who haven’t yet signed up of the availability of the overdraft
program when they log on to the home banking site again.
For more information on these requirements, see CUNA’s
e-Guide: Electronic Fund Transfers/Regulation E