The Federal Deposit Insurance Corporation (FDIC) gave banks final guidance last week regarding overdraft programs and overdraft fees. The new guidelines are intended to ensure customers receive better information about the cost of automatic overdraft protection and also require banks to assist customers in avoiding hefty overdraft fees.
The new FDIC guidelines cover personal checks and automatic debit transactions. The guidelines follow overdraft rules issued by the Federal Reserve related to debit card and ATM transactions. With the new guidelines, the FDIC made clear it expects the following from the state-chartered banks it supervises: