NBC Bank has outsourced the overdraft fee approval process to Wolters Kluwer Financial Services to manage the compliance with the Federal Reserve Board’s upcoming changes to Regulation E (Reg E).
The changes, which take effect July 1 for new accounts and August 15 for existing ones, require financial institutions to gain approval from consumers before charging overdraft fees on one-time debit card or ATM transactions.
Wolters Kluwer Financial Services offers the service through its Reg E Opt-in Manager solution to NBC Bank. The technology system uses the bank’s account-holder information to create cover letters, opt-in notices, and confirmation of consent notifications. Messages are securely and electronically delivered, or mailed if necessary, to NBC Bank’s customers who can opt-in or out.
Reg E Opt-in Manager also provides a full audit trail of opt-ins and opt-outs that are captured, scanned, imaged, and sent electronically to NBC Bank to track compliance with Reg E and the bank receives regular reports of all opt-ins and outs. In addition, Wolters Kluwer Financial Services’ warranted compliance documentation helps relieve NBC Bank of any unnecessary risk.
Shelley Gaidaroff, senior vice president and chief operating officer of NBC Bank, said: “Community banks like NBC don’t have the resources to meet the Reg E requirements in a timely manner. We’re not staffed to continually monitor and track our entire customer base for opt-ins and opt-outs. But by working with Wolters Kluwer Financial Services, we’re confident the process will be quicker, more efficient and allow us to streamline the process internally. We’ll also comply with the regulation while protecting our fee income.”
Wolters Kluwer Financial Services is a provider of compliance, content, and technology solutions and services that help financial organizations manage risk and improve efficiency and effectiveness across their enterprise.