Browsing: Overdraft protection


The OCC identified principles for banks to implement what it calls “responsible overdraft programs that benefit financially vulnerable consumers,” while continuing to encourage banks to offer other options for short-term, small-dollar credit, Acting Comptroller of the Currency Michael Hsu said in a speech today.


Three types of aggregate fee revenues—maintenance fees, ATM fees and overdraft fees—all declined in 2020, with overdraft fees seeing the greatest decline at 26.2%, according to data released by the CFPB today. In the years between 2015 and 2019, overdraft fees were increasing modestly year-over-year—about 1.7% annually, the bureau found. 

Compliance and Risk

Responding to a statutorily required review of the CFPB’s 2009 overdraft rule today, the American Bankers Association noted in a comment letter that the “opt-in” rule has empowered customers to make informed choices about seeking or declining overdraft protection services for debit card point-of-sale or ATM transactions.