Speaking of overdraft programs, the FDIC proposed guidance on automated overdraft payment programs. The proposal focuses on finding effective ways for banks to monitor their overdraft programs for excessive or chronic use by customers as a form of short-term, high-cost credit instead of its intended use: protection against inadvertent overdrafts. It also provides an overview of how banks can avoid compliance and safety-andsoundness risks. Unlike Regulation E’s opt-in requirement which applies only to paying overdrafts resulting from one-time debit card and ATM transactions, the FDIC’s proposal states that customers should have an opportunity to opt out of the payment of overdrafts resulting from non-electronic transactions such as checks. The FDIC’s proposal instructs banks to not process transactions in a manner designed to maximize the cost to customers, and to monitor accounts and take actions to limit customer use of overdraft coverage as a form of short-term, high-cost credit, for example, by giving customers who overdraw their accounts on more than six occasions where a fee is charged in a rolling 12-month period a reasonable opportunity to choose a less costly alternative and decide whether to continue with fee-based overdraft coverage. The FDIC expects banks to institute appropriate daily limits on overdraft fees, and will review overdraft payment programs during examinations. Comments on the Proposal are due by September 27, 2010.