Lightspeed Research PowerPoint Template

Debit Card OverdraftsCredit cards are not the only product being targeted by legislation.• The Federal Reserve has issued a ruling related to Regulation E (which governs ElectronicFund Transfers) that no longer permits banks to automatically assign overdraft protection (andthe related fees) to consumers for ATM and one-time debit transactions.― Once the ruling goes into effect (scheduled for July 1 st ), consumers will have to opt-in tothis overdraft protection rather than have it automatically given to them.• Two of the nation's largest banks -- Bank of America and Chase – have already staked outdistinct positions:― Bank of America announced in March it will stop authorizing point-of-sale debit cardpurchases this summer if the transaction would result in an overdraft.• Bank of America customers will “still have the choice to link their checking account toanother account through Overdraft Protection” in order to cover overdrafttransactions.― Meanwhile, Chase is allowing customers to opt-in to overdraft coverage for debit cardpurchases.• Chase has been mailing on a large scale to customers, alerting them of the changewhich requires them to opt-in by phone, online, or in a branch before Aug. 15, 2010.Chase will continue its current policy of not allowing overdrafts on ATM withdrawals.Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.39