Electronic Funds Transfer Act

Written by Tom Ragusa, Vice President/Compliance Officer of Charter Oak Bank

General Overview
The recent rule passed under the Electronic Funds Transfer Act will have an affect on all Banks in regards to Overdraft and Overdraft Fees. Bank systems will need to be updated for opt in/opt out classification so accounts are handled properly. Customer will need to “Opt In” for us to pay an ATM transaction or Debit Card Transaction that overdraws an account. While the Bank has previously accepted these transactions and typically paid them for the customer, if the customer does not “Opt In”, these items will be declined at the time of the transaction and the customer will not be charged an Overdraft fee.