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The Right Overdraft Program Provider Does ‘The Right Thing’: No Incentive Compensation

Posted by Jeff Harper, President, BSG Financial Group on Sep 29, 2015 2:36:00 PM

BSG Financial Group recently participated in an informative webinar sponsored by the American Bankers Association, called “Avoiding ‘OOPS!’ in Your Overdraft Protection Program.” As the title implies, the focus was on compliance and mitigating risk as it relates to managing a discretionary overdraft program. The program provided tips on how to successfully offer consumers a cost-effective service without encouraging reckless behavior by actively managing the legal, compliance, operations and reputation risk that accompanies overdraft protection (ODP) programs today.
 
The webinar offered many sound suggestions with regard to ad hoc decision-making, lines of credit, etc., but we found the section that related to third-party arrangements especially valuable.  According to the presenter, Patti J. Blenden, CRCM, CPA, President, Financial Solutions for Growing Companies, Inc., overdraft programs managed by third-party providers have the potential to raise concerns that differ from in-house ODP solutions.
 

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Topics: Overdraft, Pay-for-Performance, Courtesy Overdraft, Compliance