Archive

Go to:

August 2017
SMTWTFS
12345
6789101112
13141516171819
20212223242526
2728293031
< Jul Sep >
Leaguer Email Subscription

You are not currently subscribed. Click Subscribe below to receive the Leaguer email.

CFPB Unveils Overdraft Disclosure Prototypes
Monday, August 7, 2017 6:40 AM

On Friday, the Consumer Financial Protection Bureau released new overdraft disclosure prototypes meant to improve those used by financial institutions, including credit unions, to help consumers better understand the risks and costs of opting into overdraft coverage.

The CFPB released four one-page prototype model forms that are now being tested more widely. In prepared remarks, CFPB Director Richard Cordray said the bureau is not proposing any regulatory amendments on this issue, but is considering new overdraft regulations. He said the CFPB is in the "pre-rule stage," with "no timing stated for when a rule may be proposed."

Along with the overdraft disclosure prototypes, the CFPB last week also released a report on the topic, which found that those who opt into overdraft coverage typically pay substantially more in overdraft fees. The study is based on data from several large banks that the CFPB said account for more than 40 million consumer checking accounts.