One Year After Reg E Opt-In: 77% Have Signed On

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LAKE BLUFF, Ill. – One year following the implementation of Reg E – opt-in for debit card and ATM overdrafts – and 77% of checking account users have given consent.

That is one of the findings of a just-released survey by economic research firm Moebs $ervices. Polling for the survey was conducted during June. “This is over 100 million checking account consumers, more than voted in the interim election in November 2010. Forty-five point four percent of institutions offered debit card overdrafts prior to the start of Reg E last summer, now 97.7% do, and ATM overdrafts were 61.9% in 2011, more than in 2010 at 35.2%,” noted Michael Moebs, economist and CEO of Moebs $ervices. “This shows the consumer treats overdrafts as a safety net, not a penalty.”

The study also showed:
* Depositories have maintained the price for an overdraft transaction at a national median of $28 since the summer of 2010.

* Wall Street banks lowered the price of an overdraft transaction to $34 in 2011, down from $35 in 2010.
* NSF return fees increased to $28 in 2011, up from $27 in 2010.

According to Moebs, the study also revealed two contradictory findings. “Since the implementation of Reg E in August 2010, more depository institutions are allowing consumers to overdraft their checking accounts with debit cards. During this same period, we found that institutions offering automatic transfer from a savings account or a line of credit for overdraft protection decreased.”


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