Question: If we offer a deposit account for ages 50 and older where one of the benefits is a $1,000.00 overdraft limit as compared to a $500.00 overdraft limit on a similar product would this be a problem? From what I read and understand the overdraft limit is considered a credit product so the bank could be discriminating based on age. If that is correct could we raise the age to 62 years or older, have the account have a $1,000.00 overdraft limit because it’s my understanding Regulation “B” contains a definition of “elderly” as age 62 and older and the regulation allows the use of age when developed for the purpose to “favor” elderly credit.
Answer: You are correct. The overdraft line is a form of credit covered by Reg B, and Reg B prohibits discrimination based on age – except (as you noted) when favoring “elderly” applicants, with “elderly” defined as those age 62 or older.
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