We are not aware of any law or regulation requiring banks to provide counter checks to their customers. This appears to be a service that some but not all banks offer, and for which some banks charge a fee.

We recommend reviewing your account agreements to determine your bank’s obligations with respect to counter checks. If your agreements do not require you to provide counter checks to your customers, or if your agreements are silent as to whether overdrawn customers may request or pay for counter checks, we believe you may adopt an internal policy of denying such checks to overdrawn customers.

For consumer demand deposit accounts, Regulation DD requires you to provide advance notice when a change in account terms required to be disclosed in your initial disclosures will adversely affect your customers. Although customers may be adversely affected by a new policy denying them counter checks when overdrawn, we do not believe you would be required to provide advance notice of the change, since you are not required to provide information on your counter check policies in your initial disclosures.

For resources related to our guidance, please see:

• Regulation DD, 12 CFR 1030.5(a) (“A depository institution shall give advance notice to affected consumers of any change in a term required to be disclosed under § 1030.4(b) of this part if the change may reduce the annual percentage yield or adversely affect the consumer. The notice shall include the effective date of the change. The notice shall be mailed or delivered at least 30 calendar days before the effective date of the change.”)