Advertisment

Regulation E drives NBC Bank outsourcing

author-image
CIOL Bureau
Updated On
New Update

MINNEAPOLIS, US: Wolters Kluwer Financial Services announced that NBC Bank of Oklahoma City, Okla. has selected it to help the bank manage compliance with the Federal Reserve Board’s upcoming changes to Regulation E (Reg E).

Advertisment

The changes, which take effect July 1 for new accounts and Aug. 15 for existing ones, require financial institutions to gain approval from consumers before charging overdraft fees on one-time debit card or ATM transactions.

As per a press release, NBC 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. Messages are securely and electronically delivered, or mailed if necessary, to NBC Bank’s customers who can opt-in or out.

Reg E Opt-in Manager also provides a full audit trail of opt-ins and opt-outs that are captured, scanned, imaged, and sent electronically to NBC 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’ warranted compliance documentation helps relieve NBC Bank of any unnecessary risk.

“Community banks like NBC don’t have the resources to meet the Reg E requirements in a timely manner,” said Shelley Gaidaroff, senior vice president and chief operating officer for the bank. “We’re not staffed to continually monitor and track our entire customer base for opt-ins and opt-outs. But by working with Wolters Kluwer Financial Services, we’re confident the process will be quicker, more efficient and allow us to streamline the process internally. We’ll also comply with the regulation while protecting our fee income.”