Action Requested - Today

Although the proposed guidance that is the subject of this story is from the OCC, it will likely affect all IBAT members regardless of charter type.  So, if you are a state bank, please read this short notice to determine if you can help.

The OCC issued proposed guidance on deposit-related consumer credit products, including automated overdraft protection and deposit advance programs.  If this guidance is adopted by the OCC, we believe that it will ultimately affect all IBAT member banks because the Consumer Financial Protection Bureau (CFPB) will take up the issue soon, and it will surely be influenced by the OCC’s guidance.  Therefore, we believe that it is important for every IBAT member bank to comment on the proposal.  Comments must be submitted to the OCC on or before Monday, August 8, 2011.

IBAT submitted its comment letter today, and you can find it by clicking here or by going to “Legal/Compliance,” then “Legal Library,” and then “Comment Letters” on the IBAT website.  Please feel free to use our comment letter as a template for your own.  Remember, one comment letter expressing the personal opinions and experiences of a single banker will have more impact than a dozen that are copied word for word. IBAT’s comment letter can be broken down into the following subjects:

  • The proposed guidance is unnecessary and redundant
  • The negative impact on consumers
  • Costly and time consuming underwriting
  • Subjective and vague monitoring requirement
  • Requiring banks to offer alternatives
  • Order of processing
  • Inclusions of hybrid programs
  • Disruption of debit card opt-in customers

You can submit your comments by one of several methods:

  • E-mail:
  • Mail: Office of the Comptroller of the Currency, 250 E Street, SW., Mail Stop 2–3, Washington, DC 20219
  • Fax: (202) 874–5274.
  • Hand Delivery/Courier: 250 E Street, SW., Mail Stop 2–3, Washington, DC 20219.

You must include ‘‘OCC’’ as the agency name and ‘‘Docket ID OCC–2011–0012’’ in your comment.

Because we are anticipating the CFPB will adopt final rules that apply to all banks, IBAT leadership and staff are already holding meetings with CFPB representatives regarding our concerns with both the FDIC and OCC guidance. In the meantime, we think it is important for all IBAT members to comment on the OCC’s proposed guidance in an effort to prevent any offensive provisions in the OCC’s proposal from influencing the CFPB final rules.