FDIC Federal Register Citations

Rockland Trust Company


From: Christopher Burgess [mailto:Christopher.Burgess@RocklandTrust.com]
Sent: Monday, August 16, 2004 1:34 PM
To: Comments
Subject: Interagency Guidance on Over-Draft Protection Programs

Comments on behold of:
Rockland Trust Company
288 Union Street
Rockland, MA 02370

Mr. Robert Feldman, Executive Secretary
Federal Deposit Insurance Corporation
550 17th Street NW
Washington, DC 20429

Rockland Trust appreciates the opportunity to comment on the proposed regulations referenced above. Rockland Trust is the sole banking subsidiary of Independent Bank Corp., which is one of the largest independent commercial bank headquartered in Massachusetts. Rockland Trust Company has over 50 retail branches, eight commercial lending centers and three investment management offices located in Southeastern Massachusetts. The Company’s primary business lines are commercial lending, retail banking and investment management.

Several of the suggestions in the proposal caused us concern. The Bank operates the program on a discretionary basis. As a result, we should not have to report this data as part of quarterly reporting. We do not see how we could report unused commitments for lines that have not been defined as available to the consumer. We also feel that the 30 day time period to charge off is too restrictive. We would support a 60 days as an alternative to permit additional collection from the consumer.

We agree that the disclosures should include:

• A clear explanation that the program is discretionary and not misleading;
• A notice to inform consumers before any transaction other than a clearing check would trigger the overdraft;

We are concerned that the requirement to monitor for excess usage is too vague. Banks should be permitted to take steps to appropriately manage the program to meet the needs of their customer base.
We also do not see the need to aggregate fees charged in return for paying the overdraft. The customer is informed when the transaction occurs, and that should be adequate notification. Requiring aggregation of fees will also cause significant programming cost.

We appreciate the opportunity to comment on this matter.

Christopher Burgess
Vice President - Director of Compliance &
Community Reinvestment Act Officer
Rockland Trust Company
288 Union Street
Rockland, MA 02370