Overdraft Protection Review

The bank can only charge a maximum of 4 overdraft fees per day for personal accounts.

• True

• False

Answer explanation

We can only charge 4 fees per a day for a total of $120.00 on personal accounts.

Business accounts DO NOT have a limit on the number of fees we can charge per a day

Which transactions are not covered under Standard Coverage?

• ACH Payments

• Teller transactions

• Debit Card transactions

• Personal checks

Answer explanation

Exended Coverage is "extending" AOD coverage to a debit card transaction, which means everyday debit card transactions will go through and the customer could be charged AOD fees.

The default is Standard Coverage, the customer much choose Extended.

A customer must bring their account to a positive balance before you can process an overdraft fee refund.

• True

• False

A customer with a Fresh Start account is allowed to have a debit card.

• True

• False

Answer explanation

If a customer is granted a Fresh Start they are allowed to continue to use their checking account but they are not allowed a debit card.

What is the annual fee for a Check Protection Account?

• $50

• $25

• $35

• $15

Automatic Transfers are in increments of:

• $10

• $5

• $15

• $20

Answer explanation

ATS happens in $10 increments with $5 fee for each transfer.

If a customer overdraws their account $75 ATS will transfer $80 for one $5 fee.

What things do we need to look at on a customer's account before we refund Overdraft (AOD) Fees?

• Does the customer keep a register or any type of account tracking?

• What is the customer's overdraft history

• The account must be positive before we can refund fees

• Has the customer had overdraft fees refunded before?

Answer explanation

All of those things need to be looked at in deciding if you are going to process a refund.

Always discuss with your manager and/or assistant manager when refunding.

Remember you have a limit as to how much you can refund.

What is the most economical option for Overdraft Protection?

• Automatic Transfer (ATS)

• Overdraft Privilege

• Credit Protection Account (CPA)

Answer explanation

ATS is the most economical at $5 per transfer

CPA is the next at $5 per transfer, 18% interest on a carried balance and a $35 annual fee

Overdraft Privilege is the most expensive at $30 per item up to $120 per day

If the customer has more than one type of coverage we will ALWAYS exhaust the most economical option first before we move to the next one.