Inform Customers of Additional Overdraft Protection Options

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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.

An independent certified public accountant has examined Strunk’s operations and found them to be in compliance with the AICPA’s Trust Service Principles. It was determined that Strunk meets the Security, Availability, Processing Integrity, Confidentiality, and Privacy criteria for SOC 2 established by the AICPA.