DP8 Reg E Overdrafts

b. A, C, and D are incorrect because the bank must treat the opt-in or revocation of any one of the joint consumers as affirmative consent for that account.

1. How should the bank handle the Regulation E overdraft rules where there are joint account holders? A. If two or more consumers jointly hold an account, the bank must require both to opt-in or revoke consent B. The bank must treat the opt-in or revocation of any of the joint consumers as affirmative consent for that account C. One joint signer may opt-in but both must revoke consent D. Joint accounts should not be allowed to participate in the bank's Reg E overdraft protections ID:87E9166BE44745139AE0E88DDA4CC9E5

a. B, C, and D are incorrect because transfers pursuant to a courtesy overdraft protection would be covered under this rule.

1. Regulation E provides a basic framework that establishes the rights, liabilities, and responsibilities of participants in electronic fund transfer systems. Which option correctly lists a type of service that is covered under Regulation E overdraft rule? A. Transfers pursuant to the bank's courtesy overdraft protection service B. Transfers from a home equity line of credit C. Transfers from another account held by the consumer such as a savings account D. Transfers from an overdraft line of credit ID:7E942213FD824968B9CDF5351982F3B3

c. A, B, and D are incorrect because although customers may revoke consent in any manner, they must be allowed to revoke consent in the same manner that they used to opt-in.

1. The customer has the right to opt-in and to revoke a previous opt-in at any time. If customers want to revoke their opt-in, what must the bank do? A. Insist that revocation of consent be done in person at a branch B. Mandate that the customer must revoke consent in the same manner used to opt in and no other C. Allow customers to revoke consent using the same method used to opt-in D. Stipulate that if the customer must choose an alternative way to revoke consent than the method used to opt-in ID:74B5AEAF7C5D4D5DAEED02FEE55B3624

c. A, B, and D are incorrect because the bank must implement the customer's revocation of consent as soon as reasonably practical. There is no requirement to reverse overdraft fees that precede the customer's request to revoke consent and no reason to revoke debit card privileges.

1. What must a bank do if a consumer revokes his or her affirmative consent? A. Waive or reverse any overdraft fees assessed on the consumer's account prior to the institution's implementation of the consumer's revocation request B. Refuse to implement it until all pending debit card transactions have cleared the account C. Implement the consumer's revocation of consent as soon as reasonably practical D. Revoke all debit card privileges immediately ID:40D9B2BB547F45218CD517882E912140

d. A and B are incorrect because a bank must obtain a consent or opt-in before assessing fees or charges on the consumer's account for paying an ATM or one-time debit card transaction pursuant to the institution's overdraft service. C is incorrect because even if the bank does not have an overdraft program, it is possible for an account to become overdrawn such as in a force pay situation.

10. An overdraft happens when withdrawals from a bank account exceed the available balance. When must a bank obtain affirmative consent for charging an overdraft fee for one-time debit and ATM transactions? A. After the first overdraft charge for paying an ATM or one-time debit card transaction B. Every time a transaction made using an ATM or debit card occurs C. Only when the bank institutes an overdraft program D. Before assessing fees or charges on the consumer's account for paying an ATM or one-time debit card transaction pursuant to the institution's overdraft service ID:6E43FF2F8BA145AD8CA91123AD146910

a. B, C, and D are incorrect because a bank may not obtain an opt-in by including preprinted language about the overdraft service in the bank's account disclosure, by providing the opt out form on a contract that the consumer must sign to open the account, or by providing a signature card that contains a pre-selected check box indicating that the consumer is opting into the overdraft service.

10. Banks must provide customers a reasonable opportunity to opt-in. What are the permissible ways in which a financial institution can obtain the consumer's affirmative consent? A. By obtaining a blank signature line or check box used solely to opt-in and that the consumer could sign or select to affirmatively consent B. By providing the opt out form on a contract that the consumer must sign to open the account C. By including preprinted language about the overdraft service in the bank's Reg E new account disclosure D. By providing a signature card that contains a pre-selected check box indicating that the consumer is opting into the overdraft service ID:9F603741EEC94F3982A50B68793FA2F9

b. A, C, and D are incorrect because although customers may revoke consent in any manner, they must be allowed to revoke consent in the same manner that they used to opt-in.

10. Great Big Bank allows customers to opt-in by telephone. If customers want to revoke their opt-in, what must the bank do? A. Insist that revocation of consent be done in person at a branch B. Allow customers to revoke consent using the same method used to opt-in C. Mandate that if the customer opted in electronically so the customer must also revoke consent in the same manner and no other D. Stipulate that if the customer opted in electronically, the customer must choose an alternative way to revoke consent ID:5EA4910787A2437F9A7308B72762F98B

c. A, B, and D are incorrect because all are situations where the bank may not charge an overdraft fee if the customer has not opted in. Preapproved debit transactions are not one-time debit or ATM transactions covered under the Regulation E overdraft rules.

10. Many banks have historically paid transactions that overdraw a customer's account on a discretionary basis. In which situation may a bank charge an overdraft fee even if the customer has not opted in? A. The customer withdrew funds at another bank's ATM B. The overdraft was caused by an online bill payment C. The overdraft was caused due to an ongoing preauthorized debit transaction D. The overdraft was caused by the customer's purchase of postage stamps at an ATM ID:6E7E98B6DACE4AB3A7C83FF6CDC1EF10

d. A, B, and C are incorrect because the bank must treat the opt-in or revocation of any one of the joint consumers as affirmative consent for that account.

2. A bank may require a customer, as a necessary step to opening an account, to choose whether or not to opt-in. How should the bank handle the Regulation E overdraft rules where there are joint account holders? A. If two or more consumers jointly hold an account, the bank must require both to opt-in or revoke consent B. One joint signer may opt-in but both must revoke consent C. Joint accounts should not be allowed to participate in the bank's Reg E overdraft protections D. The bank must treat the opt-in or revocation of any of the joint consumers as affirmative consent for that account ID:390FE3B16FDD4ED9B153D575B0ABE103

d. A, B, and C are incorrect because all are types of fees related to an overdraft. The rule prohibits the assessment of any fee or charge—regardless of the name ascribed to the fee—on a consumer's account for paying an ATM or a one-time debit card transaction as part of the institution's overdraft service.

2. Which fee may a bank charge for debit card transactions resulting in an overdraft without violating the prohibition on charging overdraft fees? A. Nonsufficient funds (NSF) fees B. Sustained overdraft fees C. Negative balance fees D. Check printing fees ID:0CA78F7436C04872BE4948A226856CEC

c. A, B, and D are incorrect because transfers pursuant to a courtesy overdraft protection would be covered under this rule.

2. Which option correctly lists a type of service that is covered under Regulation E overdraft rule? A. Transfers from a home equity line of credit B. Transfers from another account held by the consumer such as a savings account C. Transfers pursuant to the bank's courtesy overdraft protection service D. Transfers from an overdraft line of credit ID:7F0B2C5ECF214D8FA8C486A91BDF1B92

b. A, C, and D are incorrect because Regulation E is a consumer regulation, so the overdraft rules apply only to consumer accounts.

3. The Electronic Fund Transfer Act provides certain protections to customers with regard to electronic fund transfers. Regulation E implements the act. The Regulation E overdraft service rules apply ____________. A. To consumer and commercial accounts B. To consumer accounts only C. To all accounts, even those not covered under Regulation E D. To margin stock trading accounts ID:382C2BDF29E34A709B920577D91CAC41

a. B, C, and D are incorrect because Regulation E is a consumer regulation, so the overdraft rules apply only to consumer accounts.

3. The Regulation E overdraft service rules apply ____________. A. To consumer accounts only B. To consumer and commercial accounts C. To all accounts, even those not covered under Regulation E D. To margin stock trading accounts ID:1F4156DA5C584512AE99519F66ED5315

d. A, B, and C are incorrect because a consumer may opt-in any manner allowed by the bank.

4. Before Capitol National Bank is able to charge a fee for covering debit card overdraft, Regulation E requires that the bank get the customers consent to the imposition of the fee. Is it possible for consumers to opt-in electronically, such as through an online banking portal? A. Yes, but the customer must not have been overdrawn previously B. No, because the customer must only be allowed to opt-in by writing to the bank C. No, because the customer may not be computer-literate D. Yes, but the bank must first provide the customer with an opt-in notice in writing or, if the consumer agrees, electronically ID:E3B5949D4A514C5BABBD6D70CB121D9B

a. B, C, and D are incorrect because the bank must implement the customer's revocation of consent as soon as reasonably practical. There is no requirement to reverse overdraft fees that precede the customer's request to revoke consent and no reason to revoke debit card privileges.

4. Chantel is a customer of Sterling International Bank. She wants to revoke a previous opt-in she agreed to with the bank a year ago. What must a bank do if a consumer revokes his or her affirmative consent? A. Implement the consumer's revocation of consent as soon as reasonably practical B. Waive or reverse any overdraft fees assessed on the consumer's account prior to the institution's implementation of the consumer's revocation request C. Refuse to implement it until all pending debit card transactions have cleared the account D. Revoke all debit card privileges immediately ID:B5A287E6E9F64641BA2D733D4C2CB777

c. A, B, and D are incorrect because Regulation E is a consumer regulation, so the overdraft rules apply only to consumer accounts.

4. Leon is a new customer service representative at your bank. He is learning about banking regulations and sometimes gets confused with all the regulations. You ask him to finish this sentence, "The Regulation E overdraft service rules apply ____________." A. To consumer and commercial accounts B. To all accounts, even those not covered under Regulation E C. To consumer accounts only D. To margin stock trading accounts ID:8E0733E156B6484D9A753570BCF8E466

a. B, C, and D are incorrect because although customers may revoke consent in any manner, they must be allowed to revoke consent in the same manner that they used to opt-in.

5. If a customer opted-in electronically and now wants to revoke their opt-in, what must the bank do? A. Allow customers to revoke consent using the same method used to opt-in B. Insist that revocation of consent be done in person at a branch C. Mandate that if the customer opted in electronically the customer must also revoke consent in the same manner and no other D. Stipulate that if the customer opted in electronically, the customer must choose an alternative way to revoke consent ID:2F6B11CC147946E4A2C3A2BCCB292128

a. B, C, and D are incorrect because a consumer may opt-in any manner allowed by the bank.

5. Is it possible for consumers to opt-in electronically, such as through an online banking portal? A. Yes, but the bank must first provide the customer with an opt-in notice in writing or, if the consumer agrees, electronically B. Yes, but the customer must not have been overdrawn previously C. No, because the customer must only be allowed to opt-in by writing to the bank D. No, because the customer may not be computer-literate ID:1EFD76EC2E704303A595456713E479A7

c. A, B, and D are incorrect because all are types of fees related to an overdraft. The rule prohibits the assessment of any fee or charge—regardless of the name ascribed to the fee—on a consumer's account for paying an ATM or a one-time debit card transaction as part of the institution's overdraft service.

5. Regulation E provisions pertain to the assessment of overdraft fees for debit card transactions resulting in an overdraft. Which fee may a bank charge without violating the prohibition on charging overdraft fees? A. Nonsufficient funds (NSF) fees B. Sustained overdraft fees C. Check printing fees D. Negative balance fees ID:2BFA51E3CC93445480EFC80CAA467C3D

b. A and C are incorrect because a bank must obtain a consent or opt-in before assessing fees or charges on the consumer's account for paying an ATM or one-time debit card transaction pursuant to the institution's overdraft service. D is incorrect because even if the bank does not have an overdraft program, it is possible for an account to become overdrawn such as in a force pay situation.

5. When must a bank obtain affirmative consent for charging an overdraft fee? A. After the first overdraft charge for paying an ATM or one-time debit card transaction B. Before assessing fees or charges on the consumer's account for paying an ATM or one-time debit card transaction pursuant to the institution's overdraft service C. Every time a transaction made using an ATM or debit card occurs D. Only when the bank institutes an overdraft program ID:8F58E0CA08A140288CCAA87E0EDF2A2D

d. A, B, and C are incorrect because the bank must implement the customer's revocation of consent as soon as reasonably practical. There is no requirement to reverse overdraft fees that precede the customer's request to revoke consent and no reason to revoke debit card privileges.

6. The customer has the right to revoke a previous opt-in at any time. What must a bank do if a consumer revokes his or her affirmative consent? A. Waive or reverse any overdraft fees assessed on the consumer's account prior to the institution's implementation of the consumer's revocation request B. Refuse to implement it until all pending debit card transactions have cleared the account C. Revoke all debit card privileges immediately D. Implement the consumer's revocation of consent as soon as reasonably practical ID:14567DC20E174DE5AAA74B8BDB89C5E8

b. A, C, and D are incorrect because transfers pursuant to a courtesy overdraft protection would be covered under this rule.

6. The regulation identifies three types of services that are not considered ''overdraft services.'' Which option correctly lists a type of service that is covered under Regulation E overdraft rule? A. Transfers from a home equity line of credit B. Transfers pursuant to the bank's courtesy overdraft protection service C. Transfers from another account held by the consumer such as a savings account D. Transfers from an overdraft line of credit ID:894F6D745A9F4F47BB90EF6740F3CCB5

b. A, C, and D are incorrect because all are situations where the bank may not charge an overdraft fee if the customer has not opted in. Preapproved debit transactions are not one-time debit or ATM transactions covered under the Regulation E overdraft rules.

7. Customers generally want banks to pay overdrafts to avoid embarrassment. In which situation may a bank charge an overdraft fee even if the customer has not opted in? A. The customer withdrew funds at another bank's ATM B. The overdraft was caused due to an ongoing preauthorized debit transaction C. The overdraft was caused by an online bill payment D. The overdraft was caused by the customer's purchase of postage stamps at an ATM ID:580C40B9BD2F4065BB0FEF0496AFCC03

a. B, C, and D are incorrect because all are situations where the bank may not charge an overdraft fee if the customer has not opted in. Preapproved debit transactions are not one-time debit or ATM transactions covered under the Regulation E overdraft rules.

7. In which situation may a bank charge an overdraft fee even if the customer has not opted in? A. The overdraft was caused due to an ongoing preauthorized debit transaction B. The customer withdrew funds at another bank's ATM C. The overdraft was caused by an online bill payment D. The overdraft was caused by the customer's purchase of postage stamps at an ATM ID:C1DCB32252494D77B19A7966C754A4D4

c. A, B, and D are incorrect because the bank must treat the opt-in or revocation of any one of the joint consumers as affirmative consent for that account.

8. Danny and Rashell have a joint checking account. Danny wants to revoke their opt-in choice on their account. How should the bank handle the Regulation E overdraft rules where there are joint account holders? A. If two or more consumers jointly hold an account, the bank must require both to opt-in or revoke consent B. One joint signer may opt-in but both must revoke consent C. The bank must treat the opt-in or revocation of any of the joint consumers as affirmative consent for that account D. Joint accounts should not be allowed to participate in the bank's Reg E overdraft protections ID:4E2428E4389A413B9158903D456A02EB

b. A, C, and D are incorrect because all are types of fees related to an overdraft. The rule prohibits the assessment of any fee or charge—regardless of the name ascribed to the fee—on a consumer's account for paying an ATM or a one-time debit card transaction as part of the institution's overdraft service.

8. DeMarcus has resisted opening a checking account at his local bank because of possible fees he may be charged for his debit card transactions resulting in an overdraft. Which fee do you describe that a bank may charge without violating the prohibition on charging overdraft fees? A. Nonsufficient funds (NSF) fees B. Check printing fees C. Sustained overdraft fees D. Negative balance fees ID:72539972511A438C838A945F623EDF5B

b. A, C, and D are incorrect because a bank may not obtain an opt-in by including preprinted language about the overdraft service in the bank's account disclosure, by providing the opt out form on a contract that the consumer must sign to open the account, or by providing a signature card that contains a pre-selected check box indicating that the consumer is opting into the overdraft service.

8. Once notice has been provided, customers may opt-in orally or in writing. What are the permissible ways in which a financial institution can obtain the consumer's affirmative consent? A. By including preprinted language about the overdraft service in the bank's Reg E new account disclosure B. By obtaining a blank signature line or check box used solely to opt-in and that the consumer could sign or select to affirmatively consent C. By providing the opt out form on a contract that the consumer must sign to open the account D. By providing a signature card that contains a pre-selected check box indicating that the consumer is opting into the overdraft service ID:07463B6AD3B54A16B37CC1634BEA6D2D

c. A and B are incorrect because a bank must obtain a consent or opt-in before assessing fees or charges on the consumer's account for paying an ATM or one-time debit card transaction pursuant to the institution's overdraft service. D is incorrect because even if the bank does not have an overdraft program, it is possible for an account to become overdrawn such as in a force pay situation.

9. Banks may approve an overdraft or decline to pay the overdraft—it is on a discretionary basis. When must a bank obtain affirmative consent for charging an overdraft fee for one-time debit and ATM transactions? A. After the first overdraft charge for paying an ATM or one-time debit card transaction B. Every time a transaction made using an ATM or debit card occurs C. Before assessing fees or charges on the consumer's account for paying an ATM or one-time debit card transaction pursuant to the institution's overdraft service D. Only when the bank institutes an overdraft program ID:C31099EB8D974A358B472442152BCA89

c. A, B, and D are incorrect because a consumer may opt-in any manner allowed by the bank.

9. Before charging a fee for a covered debit card overdraft, Regulation E requires that customers consent to imposition of the fee. Is it possible for consumers to opt-in electronically, such as through an online banking portal? A. Yes, but the customer must not have been overdrawn previously B. No, because the customer must only be allowed to opt-in by writing to the bank C. Yes, but the bank must first provide the customer with an opt-in notice in writing or, if the consumer agrees, electronically D. No, because the customer may not be computer-literate ID:D497D0B320AC4F40B96EE1D5E312ED1D

a. B, C, and D are incorrect because a bank may not obtain an opt-in by including preprinted language about the overdraft service in the bank's account disclosure, by providing the opt out form on a contract that the consumer must sign to open the account, or by providing a signature card that contains a pre-selected check box indicating that the consumer is opting into the overdraft service.

9. What are the permissible ways in which a financial institution can obtain the consumer's affirmative consent? A. By obtaining a blank signature line or check box used solely to opt-in and that the consumer could sign or select to affirmatively consent B. By including preprinted language about the overdraft service in the bank's Reg E new account disclosure C. By providing the opt in form on a contract that the consumer must sign to open the account D. By providing a signature card that contains a pre-selected check box indicating that the consumer is opting into the overdraft service ID:6747D0480D4B49BCB395A1988C00F033