The FDIC has issued final, tough standards for bank overdraft programs.  While it expressly covers only state non-member insured depositories directly under FDIC control, the new standards set a federal regulatory bar that will pressure other regulators now and the Consumer Financial Protection Bureau (CFPB) once it is established.  In a significant departure from prior regulatory practice, the FDIC requires institutions to evaluate consumer use of automated-overdraft programs and to intervene to steer customers to products that may be more beneficial for the consumer even if choices were made and overdrafts incurred  while the institution was in full compliance with relevant disclosure, opt-in and related overdraft rules.

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