Overdraft

CBA supports the principles of customer choice, transparency, and fairness in deposit account partnerships. Recently-enacted federal regulation has afforded consumers greater protection via detailed disclosures. Absent substantial evidence that this regulation is failing or falling short of its intended purpose, CBA believes further incremental changes to the rules governing overdraft protection will only add logistical complexity and increased consumer confusion without corresponding benefits. CBA believes coordination among the federal banking regulators will lead to more regulatory certainty for financial institutions and greater clarity for consumers.
  • August 4, 2017
    99% of consumers are not confused by the opt-in process for overdrafts Washington, D.C. - Richard Hunt, President and CEO of the Consumer Bankers Association (CBA), issued the following statement in response to the CFPB’s study on overdraft and their prototype disclosure forms. “Banks provide consumers with clear, concise procedures for opting into overdraft services. According to a 2015 Novantas...
  • August 4, 2017
    CBA Executive Banking School Class of 2017, Top Student Honored The future of retail banking looks bright with CBA Executive Banking School’s Class of 2017 carrying the torch, and I am proud to congratulate our graduates on their accomplishments. Our school is devoted to the idea that a successful banker is one who understands how to operate a bank from the ground up. After three years of...
  • August 3, 2017
    At 12:01 a.m. today, the CFPB unveiled new Know Before You Owe overdraft disclosure prototypes. According to the agency, the disclosures are designed to improve the model form banks and credit unions already provide to consumers weighing POS/ATM overdraft coverage. The Bureau currently is testing four prototypes. Each prototype has a one-page design aimed at making the costs and risks of opting-...
  • July 17, 2017
    On Monday, July 17, 2017, Sen. Cory Booker (D-NJ) sent a letter to 13 banks inquiring about their overdraft programs. “I’m concerned that too many of our nation’s banks are increasingly driven to accumulate these [overdraft] fees, rather than pursue a business model that serves their communities, and are adopting certain practices to drive participation in so-called ‘overdraft protection’...
  • March 16, 2017
    Banks and other financial firms in 2016 generated the highest level of fees in seven years related to overdrafts on checking accounts, marking a turnaround for a charge crisis-era regulation tried to rein in. So-called overdraft fees totaled $33.3 billion in 2016, up about 2.5% from 2015 and by 5.4% from 2011, according to Moebs Services Inc., an economic-research firm. Overdrafts occur when...
  • January 19, 2017
    On Thursday, January 19, 2017, the CFPB sued TCF National Bank for allegedly “tricking” consumers into costly overdraft services in violation of Dodd-Frank as well as the Electronic Fund Transfer Act. The Bureau specifically alleges TCF designed its overdraft application process to obscure fees and make overdraft seem mandatory for new customers to open an account. The agency also believes the...
  • January 11, 2017
    On Wednesday, January 11, 2017, seven Senate Banking Committee Democrats, led by Ranking Member Sherrod Brown (D-OH) and Sen. Senator Elizabeth Warren (D-MA), sent a letter to CEO of Wells Fargo, Timothy Sloan, expressing concern and asking for more information regarding the bank’s increase in overdraft fee income. “We read with great concern a Financial Times report indicating Wells Fargo’s...
  • January 2, 2017
    Hundreds of thousands of American bank accounts will have swung into the red over the festive period — boosting profits for the big banks, which can charge up to $35 for each and every overdraft facility. But, if the regulator has its way, this huge and rising source of income for the banks could be limited. Since it was first created by the Dodd-Frank Act of 2010, The Consumer Financial...
  • December 22, 2016
    Happy Holidays From CBA On behalf of all of us here at CBA, we would like to wish you and your family a very Merry Christmas and Happy Hanukkah. For the holidays, I am heading home to Jennings, Louisiana to visit my family, and I hope you are able to do the same. Be safe, and I look forward to catching up with everyone in 2017. A Sit-down With Our Chairman on What it Means to be a Banker Tackling...
  • December 20, 2016
    On Wednesday, December 20, 2016, the Pew Charitable Trust released its latest study of bank overdraft practices. The study claims most major U.S. banks continue to charge high fees when customers overdraft their accounts, and many still reorder transactions aimed at maximizing overdraft fees. A separate review of small banks ($1B and below) found similar issues, marking the first time Pew has...

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