As part of a pilot supervision effort, the CFPB has requested information on overdraft and non-sufficient funds practices from “over 20 institutions” that it has identified as having a higher share of frequent overdraft users or higher average fees.
Browsing: Overdraft protection
Ahead of a markup scheduled to begin tomorrow in the House Financial Services Committee, ABA sent a memo to lawmakers expressing opposition for H.R. 4277, the Overdraft Protection Act. Sponsored by Rep. Carolyn Maloney (D-N.Y.), the bill would amend the Truth in Lending Act to make changes to existing overdraft rules.
In a statement submitted for the record ahead of a Senate Banking subcommittee hearing on overdraft Wednesday, the American Bankers Association emphasized the important role that overdraft protection plays as a source of liquidity for American consumers and urged lawmakers to reject any legislation that would restrict these offerings.
Under pressure from Republican lawmakers to define what he meant by “junk fees”—a term coined by the bureau as part of a media campaign—CFPB Director Rohit Chopra would not offer any formal definition.
Shortly before CFPB Director Rohit Chopra began the first of two days of oversight hearings on Capitol Hill, ABA President and CEO Rob Nichols challenged Chopra’s controversial practices and “power grab” in a hard-hitting American Banker op-ed.
The American Bankers Association and all 51 state bankers associations directly challenged the CFPB on a recent request for information regarding fees associated with financial products and services offered by banks and non-bank financial institutions, including overdraft fees, insufficient funds fees, credit card fees, remittance fees, prepaid account fees and mortgage fees, among others.
Rep. Blaine Luetkemeyer (R-Mo.) today rebuked the CFPB for its campaign against so-called “junk fees”—the bureau’s term for legitimate fees charged by banks and other financial institutions for the provision of financial products and services.
In a statement for the record of a House Financial Services Committee hearing tomorrow, the American Bankers Association urged lawmakers to preserve consumer choice regarding financial products and services, including overdraft protection.
Acting Comptroller of the Currency Michael Hsu today reiterated the controversial warning he first issued to banks earlier this month at ABA’s Washington Summit: “you don’t want to be the last bank with a traditional overdraft program.”
Speaking at the ABA Washington Summit, Acting Comptroller of the Currency Michael Hsu today ramped up his rhetoric urging banks to reconsider their overdraft products.