Overdraft Privilege - Compliance

  

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While launching a competitive overdraft privilege product can be a regulatory challenge, working with Pinnacle’s experts can ensure a compliant, successful program.

Community banks and credit unions learned early on that to compete with the big multi-regional institutions, they would need to offer similar, if not better, products and services in order to keep their market share and ultimately grow more business through new accounts. When it comes to offering a competitive overdraft privilege product, compliance and risk management departments, as well as outside counsel, often raise strong concerns about risk and compliance. For institutions with branches in more than one state, understanding all the various state laws and regulations in addition to federal rules, regulations, and guidelines offers an additional challenge. Implementing a successful and consistent overdraft privilege program that meets all legal and compliance requirements can seem overwhelming.

As the premier provider of fully compliant, consumer focused overdraft privilege programs, Pinnacle addresses risk management and compliance issues with each client. Our expert team of compliance practitioners handles research, documentation, calculations and analysis of every detail. They work diligently to reassure clients that they are establishing and delivering an overdraft privilege program that meets all the applicable requirements.  We do the research and discuss all aspects of your program including such details as ALLL calculations, total outstanding overdraft balances to loss ratios, and the proper accounting and call-report presentations.  We work with clients to answer all questions about program implementation and operations including such topics as avoiding unfair and deceptive practices, complying with the various state laws, and compliance questions concerning the nearly one dozen Federal regulations. Time and time again Pinnacle clients are able to minimize their internal due diligence efforts and their outside legal costs when implementing Pinnacle’s overdraft privilege program.  In addition, our in-depth product training for all front line employees provides them what they need to know and do to properly offer and explain your institution’s overdraft services.

Pinnacle clients appreciate the time spent in preparation for implementation as well as the value our team’s experience and efficiency provide to a successful and timely program launch. Compliance staffs and legal advisors recognize that the Pinnacle team is, indeed, operating in the institution’s best interests when it comes to requirements and best practices. And access to the Pinnacle online portal allows our clients program managers to stay abreast of changing regulations and their accompanying policies and procedures. We know what to look for and how to stay abreast of pending and new regulations. To date, more than 1,000 banks and credit unions have taken advantage of the tools, regulation summaries, online Regulatory Support portal and online compliance assessment created and maintained by our team.