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.
  • June 13, 2016
    Banks 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, 2016
    Federal 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, 2016
    Today, 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, 2016
    April 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) [1] appreciates the Banking...
  • March 16, 2016
    Dear 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, 2016
    Many 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...
  • February 3, 2016
    The Consumer Financial Protection Bureau stepped up efforts Wednesday to encourage banks to offer simple checking and savings accounts, but many institutions said they are already taking steps to try to reach the underbanked. The CFPB sent a letter to the 25 largest retail banks calling on them to offer accounts without overdraft features and advertise them more widely, while expressing concerns...
  • January 22, 2016
    On Friday, January 22, 2016, in anticipation of severe winter storms, the OCC issued a statement authorizing national banks and other federal savings associations in potentially impacted areas to close, but cautioned them on their responsibility to consumers. The agency reminded banks of their obligations to aid financial institutions and consumers affected by the storm, and recognized the...
  • November 20, 2015
    CFPB Releases Updates to Rulemaking Agenda On Friday, November 20, 2015, the CFPB released its semiannual rulemaking agenda as part of the federal government's Unified Agenda of Regulatory and Deregulatory Actions. Part of the CFPB's mandate from Congress is to make rules governing consumer finance markets more effective and to create new rules when warranted. The agenda includes rulemaking...
  • November 17, 2015
    Under pressure from new regulations and their customers, banks are seeing overdraft frees fall and taking some of their profitability down with them. While the overdraft free has long been an easy source of funds, it has been on the decline for the last several years, and new data indicates that it may be falling faster than ever, reports the Wall Street Journal. A report released by Moebs...

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