MADISON, Wis. (7/8/10)--Several credit union vendors are offering initiatives to help credit unions comply with Regulation E, which became effective July 1 for newly created accounts. Rules for existing credit union members will take effect Aug. 15. Regulation E covers electronic fund transfers and overdraft protection. Under the rule, overdraft protection cannot be provided as an automatic service to credit union members. Members must opt-in for the service. CO-OP Member Center, a wholly owned subsidiary of CO-OP Financial Services, Rancho Cucamonga, Calif., will take members’ opt-in calls and report customer requests and relevant accounts to be covered to the credit union. It then generates a written communication to the member confirming they have opted in. The service has no set-up fees and is available to CO-OP clients. Fiserv, a provider of financial services solutions based in Brookfield, Wis., also has unveiled Regulation E Opt-In optimization programs to help its clients prepare for Regulation E. The programs aim to help financial institutions maintain a good consumer experience as Regulation E changes are communicated to consumers and overdraft preferences are established, Fiserv said. Fiserv’s three-tiered program offers:
* Option One: Reg E Deployment Program and Implementation Workshop. The workshop provides tools and guidance to minimize impacts of Regulation E, including a deployment guide, targeted messaging, customer segmentation guidelines, project plan template and recommended marketing collateral samples. * Option Two: Reg E Consulting and Opt In Outreach Support. The option includes consulting services for portfolio segmentation and other data analytics, opt-in optimization recommendations, staff and consumer training, project plan, consumer-focused collateral and two consumer outreach direct mail campaigns. * Option Three: Reg E Outreach Complete. The program is designed to help financial institutions launch the most effective consumer outreach program. Features include reaching the consumer via all the channels in which they do business, obtaining the consumer affirmative consent, distributing opt-in confirmation letters and housing all the information in a secure database.
SynTel, a provider of mailroom automation software and document design software, has expanded its services to include Regulation E mailings. Financial institutions provide SynTel with a mailing list, and it completes the compliance requirements from printing and mailing to reporting and confirmation. SynTel's solution includes template notices of the rule to customers, giving them an opportunity to consent to overdraft protection. The Credit Union National Association also is offering the Regulation E Electronic Funds Transfer Seminar in a Box. With the seminar, credit union staff can understand what transactions are covered by Regulation E, when a disclosure is required, what must be included in the disclosure, and what form must be provided.