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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.
- December 20, 2016Of all the many fees that banks charge, the overdraft fee may be the most perverse. And the most infuriating. Overdraft services began decades ago as a courtesy by banks to their customers: If you didn’t have enough money in your account to cover a check, your bank stepped up, saving you the hassle and embarrassment of bouncing it. Now that debit cards and recurring payments are increasingly...
- September 21, 2016The Consumer Financial Protection Bureau has been eyeing potential changes to overdraft protection programs since its early days, but isn't likely to announce oversight plans anytime soon. Despite years examining the issue, observers said that it's not clear the CFPB has reached a conclusion about how to best tackle changes to overdraft protection programs. Fees for non-sufficient funds and...
- July 21, 2016Bankers are taking the unusual step of asking the government for additional regulations — ones that can be used to block the Consumer Financial Protection Bureau from seeking more data from financial institutions. The American Bankers Association and the Consumer Bankers Association are urging the Office of Information and Regulatory Affairs to impose requirements on the "generic clearance"...
- July 14, 2016On Thursday, July 14, 2016, the CFPB announced a consent order with Santander regarding overdraft policies. The Bureau alleged Santander’s telemarketers engaged in deceptive practices by signing consumers up for overdraft services without their consent, implying the overdraft services were free, insinuating there would be fees if consumers did not opt in, falsely claiming the call was not a sales...June 13, 2016Banks require their retail workers to meet aggressive and unethical sales quotas, the Communications Workers of America charged as it tries to organize a barely unionized industry. Several bank employees at a Capitol Hill briefing said they face pressure to push products, such as credit cards, that may not be in consumers' best interest. The CWA, which convened the event and subsequent meetings...May 17, 2016Federal regulators have made it clear that they will soon implement rules that govern more strictly how banks assess overdraft fees. The expected move will be the first since regulators began requiring banks to get written authorization from customers to opt in to overdraft programs, starting in 2010. The Consumer Financial Protection Agency (CFPB) announced in November that it is preparing to...April 20, 2016Today, the CFPB released results of a study which found attempts by online lenders to debit payments from a consumer's checking account add significant costs to online payday loans. The report is based on data collected by the Bureau over an 18-month period between 2011 and 2012 and focusing on online payday and certain online installment loans made by more than 330 lenders. The analysis is a...April 7, 2016April 7, 2016 The Honorable Richard Shelby Chairman, Committee on Banking, Housing, and Urban Affairs United States Senate Washington, D.C. 20510 The Honorable Sherrod Brown Ranking Member, Committee on Banking, Housing, and Urban Affairs United States Senate Washington, D.C. 20510 Dear Chairman Shelby and Ranking Member Brown: The Consumer Bankers Association (CBA)  appreciates the Banking...March 16, 2016Dear Chairman Hensarling and Ranking Member Waters: The Consumer Bankers Association (CBA) appreciates the Financial Services Committee’s continued oversight of the Consumer Financial Protection Bureau and its activities. We would like to take this opportunity to submit the following comments on the hearing entitled, “The Semi-Annual Report of the Bureau of Consumer Financial Protection.” CBA is...February 5, 2016Many CBA Members Already Serving Unbanked Earlier this week, in conjunction with a Wednesday field hearing in Louisville, KY, the CFPB made headlines by calling on the nation’s 25 largest banks to offer alternative (i.e. low-cost, no overdraft) checking accounts to consumers. CBA strongly believes all U.S. consumers should have access to checking accounts with upfront fee disclosures and clear...