First Savings Bank of Clarksville, Indiana, has selected Wolters Kluwer Financial Services to manage compliance with the Federal Reserve Board’s upcoming changes to Regulation E (Reg E).
The changes, which take effect July 1, 2010, for new accounts and August 15, 2010, for existing ones, require financial institutions to gain approval from consumers before charging overdraft fees on one-time debit card or ATM transactions.
First Savings Bank has completely outsourced the overdraft fee approval process to Wolters Kluwer Financial Services through the company’s Reg E Opt-in Manager solution. The technology system uses the bank’s account-holder information to create cover letters, opt-in notices, and confirmation of consent notifications.
Reg E Opt-in Manager also provides a full audit trail of opt-ins and opt-outs that are captured via a bar-coding system, scanned, imaged, and sent electronically to First Savings Bank to track compliance with Reg E. And the bank receives regular reports of all opt-ins and -outs. In addition, Wolters Kluwer Financial Services’s warranted compliance documentation will help relieve First Savings Bank of any unnecessary risk.
Sonny Brewster, vice president and compliance officer for First Savings Bank, said: “By outsourcing the task of Reg E compliance to Wolters Kluwer Financial Services, I’m confident we’re meeting all of the requirements more quickly and efficiently than we could on our own. And the regular reports we receive on opt-ins and -outs give me peace of mind that we’re well on our way to meeting the upcoming compliance deadline.”