FDIC FAQs- What is an example of an appropriate daily limit on overdraft fees?

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Q: What is an example of an appropriate daily limit on overdraft fees?

A:  Daily limits can help prevent a customer’s individual lapse in financial management from triggering a cascade of overdraft fees, and will be reviewed as one possible element of the institution’s overall approach for addressing chronic or excessive use of automated overdraft payment programs. For example, some institutions have implemented limits on the number of transactions that will be subject to a fee (e.g., no more than three per day) or on total allowable fees (e.g., a specific maximum dollar amount of allowable fees per day).

This can be found in FAQ III-1 of the FDIC’s Overdraft Payment Program Supervisory Guidance FAQs.  The FAQs can be found at: http://www.fdic.gov/news/conferences/overdraft/FAQ.html

 

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