It’s no secret that the regulatory agencies do not like overdraft fees and often scrutinize financial institution overdraft practices. While there have been a few regulatory changes related to overdrafts and some guidance issued over the years, we haven’t seen any sweeping overdraft reform. Even where the regulations and guidance may be lacking, UDAAP is always a threat. Section 5 of the FTC Act spells out specific criteria that must be met for a practice to be considered “unfair” and/or to be considered “deceptive”. Sections 1031 and 1036 of the Dodd-Frank Act also provide specific criteria for a practice considered to be “abusive”.
Jerod explains these criteria in the video.
Published 2026/06/23