CFPB Seeks Feedback on Regulatory Review, Overdraft Rule

The Consumer Financial Protection Bureau today issued a notice detailing how it will periodically review regulations as required by the Regulatory Flexibility Act, which requires agencies to conduct decennial reviews of certain rules and consider their effects on small businesses.

The CFPB said that in conducting RFA reviews, it would consider several factors, including: the continued need for the rule; the nature of public complaints or comments on the rule; the rule’s complexity; the extent to which the rule overlaps, duplicates or conflicts with existing federal, state or other rules; and the how the market has changed since the rule was issued. Comments on the bureau’s notice will be accepted for 60 days after publication in the Federal Register.

In addition, the CFPB announced the launch of its first RFA review, which will focus on the 2009 overdraft rule. That rule requires that a consumer affirmatively consent—or “opt in”—to overdraft services before a bank may impose a fee for an overdraft resulting from a point-of-sale debit card or ATM transaction. After five years of studying data and other information on overdraft services provided by ABA and others, the CFPB last spring indicated it would not pursue additional regulation of overdraft.

Comments on the overdraft rule are due 45 days after publication in the Federal Register.