ODP Repayment Plans: How to Manage Fresh Starts

June 17, 2026/in Compliance, Banks, Credit Unions, Financial Services, Markets, Overdraft Privilege, Perspectives, Sales, Tips/by Melissa Newbury

ODP Repayment Plans: How to Manage Fresh Starts

Offering structured repayment options is a powerful way to help your customers recover from a negative balance while protecting your institution’s bottom line. In ODP Manager, these are managed through Fresh Start Repayment Plans.

These plans allow customers to repay an overdrawn balance in up to four payments while retaining the use of their checking account. For community financial institutions (CFIs), Fresh Starts serve an essential purpose: boosting collections on overdrawn accounts that might otherwise face a charge-off.

To understand why these plans are structured so specifically, it helps to look at the compliance history that governs them.

The Regulatory History: Reg Z, Reg B, and Incidental Credit

The “four-payment rule” utilized by ODP Manager is not arbitrary. It is carefully engineered to align with the historical definitions of incidental credit under federal lending regulations.

The Birth of the “Four-Installment Rule” (Regulation Z)

When the Truth in Lending Act (TILA) and its implementing Regulation Z were enacted, the goal was to ensure full transparency regarding the cost of consumer credit. However, regulators recognized that not every deferred payment arrangement was a traditional loan.

To separate formal credit from informal accommodations, Reg Z established that a transaction only qualifies as “consumer credit” requiring extensive disclosures if it meets a specific threshold. It must either:

Impose a formal finance charge.
Be payable by written agreement in more than four installments.

If an institution extends credit that carries no finance charge and is payable in four or fewer installments, it falls outside the heavy disclosure requirements of Reg Z. This exemption became known as incidental credit.

The Operational Relief under Regulation B

When the Equal Credit Opportunity Act (ECOA) and Regulation B were implemented to prevent credit discrimination, the framework adopted a similar stance. Reg B officially defined incidental credit as an extension of consumer credit that:

Is not made via a credit card account.
Carries no finance charge.
Is payable by agreement in four or fewer installments.

Recognizing that incidental credit is usually offered as a courtesy, Regulation B grants limited exceptions from certain strict procedural rules. For true incidental credit, institutions are exempt from certain rigid requirements regarding formal adverse action notices and strict record retention mandates.

By capping the Fresh Start Repayment Plan at a maximum of four payments without adding finance charges, ODP Manager allows CFIs to assist overdrawn account holders and maximize recoveries without the operational burden of treating the workout agreement as a formal consumer loan.

Streamlining the Fresh Start Process in ODP Manager

When a customer requests assistance, your team can quickly review the account against your institution’s specific criteria to determine eligibility. Once approved, tracking the agreement is completely seamless within ODP Manager.

ODP Manager Reminder ➔ Check Core System ➔ Verify Payment ➔ Update ODP Manager

By simply entering the repayment schedule start date, total balance, and number of payments, ODP Manager automatically calculates the correct payment amounts and due dates. From there, your team can:

Populate agreements: Generate the Fresh Start agreement directly from the automated repayment schedule.
Export documentation: Save and export individual account Fresh Start information as a PDF for easy record-keeping.

Proactive Payment Tracking & Reminders

Keeping track of manual payment schedules can drain your staff’s time. ODP Manager solves this by creating individual payment reminders that clearly display when a payment is due or overdue.

These reminders prompt users to verify the core system and ensure the payment was made as agreed. If successful, users can instantly log the payment dates and amounts directly into ODP Manager.

Handling Defaults and Charge-Offs

If a customer fails to make a payment as agreed and falls 10 or more days past due, the Fresh Start plan enters default. At this stage, the checking account should be closed and charged off.

ODP Manager accelerates this offboarding process:

Enter the account number to automatically prefill the customer’s name and address.
Generate the Fresh Start Default letter instantly.
Notify the customer that their account has been officially closed, charged off, and reported to the appropriate agencies.

Robust Compliance and Tracking Reports

To maintain clear compliance visibility, the platform includes a Fresh Start Tracking report that lists every account currently assigned a Fresh Start ODP Status Code.

Operational Best Practice: Ensure your team assigns the Fresh Start ODP Status Code to accounts the moment the ODP Limit is removed and the repayment plan is initiated.

Additionally, ODP Manager can display a comprehensive list of all active repayment plans. This dashboard helps users easily track loan amounts, payments made to date, and outstanding balances.

Need to share these insights with your leadership team or auditors? All summary reporting can be exported to PDF or Excel in just a few clicks.

Optimize Your ODP Strategy Today

Have questions about unlocking the full potential of ODP Manager’s Fresh Start Repayment Plan features? Contact Strunk Support at support@strunkaccess.com for more details.

Bank Revenue Growth: What Your 2026 Plan Is Missing

June 3, 2026/in Compliance, Banks, Credit Unions, Financial Services, Markets, Overdraft Privilege, Perspectives, Pricing Manager, Risk Manager, Sales, Secure Checking/by Mike Sobba

Bank Revenue Growth: What Your 2026 Plan Is Missing

At a recent bankers conference in Florida, a speaker shared a survey detailing the highest priorities for bankers in 2026. The audience consisted of bank vendors looking to align their products with what bankers want.

After 42 years in the banking industry, the results flabbergasted me. Nowhere on the top ten list was making more money.

The Tech Distraction vs. The Bottom Line

Unsurprisingly, Artificial Intelligence (AI) and the role of Bitcoin dominated the list. Both are critical as bankers navigate a shifting competitive landscape and fight nonbanks for loans and deposits.

However, it seems those surveyed weren’t thinking like bank shareholders. Increasing franchise value was completely absent from the conversation. Innovation is vital, but a bank cannot innovate without profitability.

Driving Profitability for Over Three Decades

Strunk has helped community financial institutions maximize their revenue since 1993. We provide proven programs designed to boost your bottom line:

Overdraft Privilege (ODP) Program: Historically one of the best fee income ideas in the industry, it remains a pillar of non-interest income.
Secure Checking Program: Significantly increases fee income while providing high-value benefits directly to consumers.
Loan and Deposit Pricing Solution: Optimizes your interest income structure, with the potential to increase net interest income by 25 bp.
Risk, Policy, and Vendor Manager Programs: While these tools don’t directly drive fee income, they dramatically boost operational efficiency and protect your franchise.

Make Income Your Top Priority Again

Increasing income should be at the forefront of every banker’s strategy. Strunk has spent over three decades helping financial institutions do exactly that.

Ready to maximize your profitability? Contact the Strunk team today at info@strunkaccess.com to see how we can strengthen your institution’s financial future.

ODP Manager Software: How to Optimize Account Inquiry

May 20, 2026/in Banks, Compliance, Credit Unions, Financial Services, Markets, Overdraft Privilege, Perspectives, Sales/by Melissa Newbury

ODP Manager Software: How to Optimize Account Inquiry

Maximize Efficiency with ODP Manager Account Inquiry

The hosted ODP Manager software provides a centralized hub for managing imported account data. Whether you need a high-level overview of multiple accounts or a deep dive into a specific file, the Account Inquiry feature simplifies your workflow.

Flexible Data Visualization

Stop digging through spreadsheets. Customize your workspace to see exactly what you need:

Custom Views: Select specific data columns to display only relevant information.
Dynamic Filtering: Use Groups or individual filters to isolate accounts meeting specific criteria.
Easy Export: Generate customized reports by exporting your filtered lists directly to Excel.

Comprehensive Account Management

Gain a 360-degree view of both open and closed accounts. Within the individual Account Inquiry screen, users can review:

Core ODP Information: Contact details and event history.
Compliance & Plans: Access Reg E Opt-In/Opt-Out status, Fresh Start Repayment Plans, and Charge-off items.
Communication: View internal comments and reminders.
Documentation: Aggregated individual account data can be downloaded as a PDF for easy sharing or filing.

Customizing Your Inquiry Experience

To improve performance and relevance, institutions can customize how their data loads. By default, the system displays Open Accounts from the most recent import.

Pro-Tip: Tailor Your Load Times

If your institution manages a high volume of accounts, you can request two specific customizations from Strunk:

Change Default Groups: Designate a specific group to load automatically upon login.
Search-First Loading: Set the system to only display results after a specific filter (like an account number) is entered. This significantly reduces load times for larger databases.

Need Assistance?

If you have questions about optimizing your Account Inquiry settings, the Strunk Support team is here to help.

Contact us: support@strunkaccess.com

Overdraft Privilege Program: 10 Reasons to Use Strunk

May 6, 2026/in Compliance, Banks, Credit Unions, Financial Services, Markets, Overdraft Privilege, Perspectives, Sales/by Mike Sobba

Strunk’s Overdraft Privilege (ODP) program has supported the industry for over 40 years. Many banks continue to leverage this strategy, which has proven to be one of the most successful fee income programs in banking history. By treating the daily overdraft process as a dedicated line of business through Strunk’s proven program, your institution can achieve greater efficiency and compliance.

1. Drive Revenue Without Raising Prices

The primary advantage of Strunk’s program is its ability to substantially increase fee income for your institution without requiring a price hike for your customers.

2. Ensure Regulatory Compliance

In a complex shifting landscape, Strunk ensures your program remains compliant with all applicable laws, regulations, and industry best practices.

3. Automated Decision Making

Manually reviewing accounts is inefficient. This program automates the daily “pay/don’t pay” and “charge/don’t charge” decisions for accounts with negative balances.

4. Advanced Reporting & Transparency

Strunk provides the data-driven insights necessary to manage your ODP effectively:

Coverage Oversight: Reports ensure every eligible customer receives an ODP limit for checks and ACH items.
Performance Metrics: Utilization and opt-in reports track performance by branch and product type.
Customer Awareness: These reports help the bank ensure customers are fully informed about the program.

5. Empower Consumer Choice

Rather than the bank making assumptions, this program gives consumers the power to choose how they want their accounts handled.

6. Essential Point-of-Sale Access

A formal ODP program provides a safety net at the register. It allows consumers to complete essential purchases—such as prescription drugs or groceries—using a debit card that might otherwise be denied at the point of sale.

7. Support Customers with “Fresh Start” Loans

When customers struggle to repay an overdrawn account, Strunk offers a responsible solution. The “Fresh Start” four-month installment loan provides an opportunity to help customers regain their financial footing.

8. Streamlined Collections

The program generates compliant collection letters. These communications are automatically triggered based on the specific amount of time a customer’s account has remained overdrawn.

9. Comprehensive Employee Training

Implementation includes training for your staff on the specific benefits of ODP and the mechanics of how the program functions.

10. Proven Customer Satisfaction

Despite common misconceptions, consumer complaints regarding overdraft fees and published charges are historically small. Running a compliant, automated program is ultimately beneficial for both the bank and the customer.

With over four decades of experience, Strunk specializes in enhancing customer service while simultaneously boosting fee income. Ready to optimize your bank’s performance? Contact Strunk at 800.728.3116, email info@strunkaccess.com or visit our site to learn how we can help your institution make more money efficiently.

How can Banks make more money without raising prices?

March 4, 2026/in Banks, Compliance, Credit Unions, Financial Services, Markets, Overdraft Privilege, Perspectives, Sales/by Mike Sobba

Banks across the country charge fees for all types of services…have you ever looked at the service charge schedule of a bank? Typically, those charges stay the same for years and are never reviewed for potential increases. Just go to a bank’s website and click on service charges and most banks publish their fees. Notice at the bottom of the page the date of the update to the fee schedule. Many times, it has been 5+ years since any changes have been made.

At Strunk we developed a program thirty years ago that increases fee income substantially without raising prices. Our Overdraft Privilege program focuses on the volume of checks/debits that overdraw an account rather than the fee the bank charges. Of course, we don’t want to encourage consumers to overdraw their account, but we don’t want to discourage them either.

Overdraft Privilege gives consumers a choice on how they want their account handled, rather than the bank deciding how the consumer wants their account handled. For checks and ACH items that overdraw and account, those debits are typically not returned to the merchant since fees pile up when that happens. Conversely for debit card and other electronic transactions that overdraw the account, consumers must opt in for those overdrafts. It’s been like this since July 1, 2010.

There are two components to generating fee income for a bank. 1) the fee being charged and 2) the number of “uses” for that service. ODP is all about the “uses” and not the fee.

Let Strunk revitalize your old ODP program to generate some additional income. Contact Strunk at info@strunkaccess.com or call us at 800.728.3116.

Inform Customers of Additional Overdraft Protection Options

February 18, 2026/in Banks, Compliance, Credit Unions, Financial Services, Markets, Overdraft Privilege, Perspectives, Tips/by Melissa Newbury

Part of managing an Overdraft Privilege program is monitoring excessive Overdraft Privilege usage by consumers to inform them about alternatives to ODP. These additional available options to cover overdrafts could be an Overdraft Protection Credit Line or an Overdraft Protection Transfer from another account the customer has with the financial institution.

FDIC regulated institutions are expected to give customers who overdraw their accounts on more than six occasions where a fee is charged in a rolling twelve-month period a reasonable opportunity to choose a less costly alternative and decide whether to continue with fee-based overdraft coverage. Strunk also recommends that institutions not regulated by the FDIC also communicate available alternatives to ODP on an annual basis to accounts with insufficient funds items.

The hosted ODP Manager software includes a letter template to assist with notifying customers of the alternative options. If the extract file imported into ODP Manager includes data from the core system that indicates when an account has exceeded the specified threshold, the letter can automatically show as due. If there is not sufficient data available in the extract file but qualifying accounts can be identified from other information tracked in the core, the Excessive Use Notification Letter can be generated by account number as needed. Once generated, the letter will be tracked and stored within ODP Manager.

If you have any questions about the Excessive Use Notification Letter available in ODP Manager, please contact Strunk Support at support@strunkaccess.com for more details.

Accept Regulation E Elections Online

January 7, 2026/in Banks, Compliance, Credit Unions, Financial Services, Markets, Overdraft Privilege, Perspectives, Tips/by Melissa Newbury

Consumers are required to opt in to have ATM and everyday debit card transactions considered for authorization using the overdraft limit. The request can be submitted, in person, through the mail, over the phone, or electronically.

If institutions do not already offer an electronic Reg E opt in or opt out option, ODP Manager can be set up to allow customers to submit their request online. In the hosted software, the Reg E Opt In Form and Reg E Opt Form will be created to match the content on the ODP Manager letter templates. Links to the forms will then be added to an institution’s website to direct customers to submit their Reg E election. Email confirmations are generated and sent to the customer and to the ODP Manager user who will retrieve the submissions and update the accounts accordingly.

In ODP Manager, users will link the request to the customer’s account and the customer’s electronic submission will be retained in the Account Inquiry Attachments for the account. Users can download a list of the submitted requests to perform the maintenance to the account’s Reg E election in the core processing system. The account should be updated in the core to be opted in or opted out of the ATM and everyday debit card transactions according to the customer’s request. By default, new responses will show in the list in the hosted software. Prior responses are also retained and can still be viewed after they have been downloaded.

If you have any questions about setting up the online Reg E Opt In or Reg E Opt Out forms in ODP Manager, please contact Strunk Support at support@strunkaccess.com for more details.

Is it Time to Reevaluate your Overdraft Payment Process?

December 10, 2025/in Banks, Compliance, Credit Unions, Financial Services, Markets, Overdraft Privilege, Perspectives, Sales, Tips/by Mike Sobba

Strunk’s Overdraft Privilege program has been around for over 30 years and many banks still take advantage of the strategy that turned out to be one of the best fee income programs in our industry’s history. Other financial institutions decided to go back to the old “ad hoc” program. Now is the time to rethink that decision.

Consumers want a choice when handing their finances and ODP gives that choice to them. Do customers want their debit card transactions to be authorized at point of sale or do they want the transaction denied? Virtually all consumers want their paper checks paid rather than returned to the merchant. Strunk’s formal ODP program allows financial institutions to make this happen in a simple and compliant fashion.

Non-sufficient fund and overdraft fees have dropped dramatically over the past decade and today they are about a third of what they were in 2010. Electronic transactions make up about 95% of all debits that a bank processes which is considerably more than what it was at the turn of the century.

Running a compliant, efficient, automated daily overdraft program is good for both the customer and the bank. Consumer complaints regarding paying overdrafts and charging a published fee are very small. After over three decades of helping financial institutions enhance customer service and fee income at the same time we have learned a lot about consumer banking.

Contact Strunk at 800.728.3116 or email at info@strunkaccess.com to learn how we can help you make more money efficiently.

Generate ODP Manager Letters by Account Number

November 19, 2025/in Banks, Compliance, Credit Unions, Financial Services, Markets, Overdraft Privilege, Perspectives, Sales, Tips/by Melissa Newbury

In the hosted ODP Manager software, there are three letter types: Collection, Custom, and Ad Hoc. Collection letters are sent to accounts that are currently overdrawn. Custom letters are letters that are providing customers with information about their Overdraft Privilege program and options. The third letter type, Ad Hoc letters, allows users to generate specific letter templates as needed.

Ad Hoc letters do not require an account event to trigger the letter to show as due. They also can be used for situations where the file does not contain the necessary data to show a letter as due. In either of these situations, when an ODP Manager user has identified an account or accounts that should receive a letter, they are able to generate the letter by entering the account number(s). Letters can be generated one account at a time, or multiple account numbers at once.

Ad Hoc letters can benefit institutions in two ways. First, generating the Ad Hoc letter in ODP Manager allows users to eliminate the manual process of populating a letter with a customer’s name, address, and other account information – the hosted ODP Manager software can pre-fill this information once the account number is entered. Second, generating the Ad Hoc letter directly in ODP Manager allows users to track and retain the letter in the software – just like the Collection and Custom letters generated. This allows users to have a single location to look for letters that have been generated on an account.

The inherent flexibility of the Ad Hoc letter template feature may allow institutions to accommodate all Overdraft Privilege Program-related letters – not just letters included in the standard Collection and Custom letters. If users need to close and charge off an account before the standard number of days overdrawn, they can use an Ad Hoc letter to generate an Account Closed letter. If there are ODP-related letters that are sent in specific situations other than those covered by the standard letter templates, Strunk can create the letters as Ad Hoc letter templates. Ad Hoc letters can also be used to generate Fresh Start Repayment Plan agreements.

If you have any questions about using Ad Hoc letter templates in ODP Manager, please contact Strunk Support at support@strunkaccess.com for more details.

Periodic Review of Accounts for Overdraft Privilege

August 20, 2025/in Banks, Compliance, Credit Unions, Financial Services, Markets, Overdraft Privilege, Perspectives, Tips/by Melissa Newbury

To run a successful Overdraft Privilege program, at least 90% of eligible checking accounts should have an OD Limit. Strunk recommends that institutions periodically review accounts not currently in the ODP program to determine if the accounts now qualify for Overdraft Privilege. Performing this review at least quarterly (or more frequently if able) will help to maintain higher participation in ODP.

The Status Tracking report in ODP Manager includes all open accounts in status codes that indicate the account does not currently have an OD Limit assigned. The ODP Status Code indicates the reason that the account did not qualify for ODP. Users should review the Status Tracking Report by ODP Status Code to determine if any of the accounts now qualify for ODP, or if not, to verify or update the reason the account does not qualify. Reviewing the accounts grouped by ODP Status Code allows a more efficient process and allows users to review certain status codes more frequently if needed.

The ODP Requalification group on the report shows accounts that are no longer overdrawn and have a certain level of deposits in the last 30 days. These accounts likely will requalify for ODP unless the account has other circumstances that prevent it from being in good standing.

When an account meets the qualifying characteristics and is assigned an OD Limit, ODP Manager will show the accounts as due for a Welcome letter or Reinstatement letter.

If you have any questions about ODP Manager’s Status Tracking report, please contact Strunk Support at support@strunkaccess.com for more details.