Earlier today, the Office of the Comptroller of the Currency issued the following announcement:

The Office of the Comptroller of the Currency has removed from [its] Web site the “Deposit-Related Consumer Credit” booklet originally posted on February 11, 2015.  Since the booklet is not intended to establish new policy, the agency is revising the booklet to clarify and restate the existing law, rules, and policy. The agency expects to post the revised booklet within the next two weeks. 

We welcome this news. As reflected in yesterday’s e-alert, the method used by the OCC in communicating sweeping changes to “supervisory principles” pertaining to overdrafts and “deposit-related consumer credit products” was odd and the supervisory principles were problematic. While we are gratified by the action the OCC is taking to correct the Handbook, we nevertheless fear that the supervisory principles published last week likely reflect the views of one or more senior OCC officials. Both federally chartered and state chartered financial institutions need to prepare for the possibility of significant constraints in the future on their practices relating to overdrafts. Thus, Ballard Spahr plans to go forward with our March 11 webinar on the subject. More information and the registration form are available here.

Ballard Spahr's Consumer Financial Services Group is nationally recognized for its guidance in structuring and documenting new consumer financial services products, its experience with the full range of federal and state consumer credit laws, and its skill in litigation defense and avoidance.

For more information, please contact CFS Practice Leader Alan S. Kaplinsky at 215.864.8544 or kaplinsky@ballardspahr.com, CFS Practice Leader Jeremy T. Rosenblum at 215.864.8505 or rosenblum@ballardspahr.com, Mark J. Furletti at 215.864.8138 or furlettim@ballardspahr.com, or Glen P. Trudel at 232.252.4464 or trudelg@ballardspahr.com.

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This alert is a periodic publication of Ballard Spahr LLP and is intended to notify recipients of new developments in the law. It should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own attorney concerning your situation and specific legal questions you have.

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