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.
  • November 3, 2015
    November 3, 2015 Consumer Financial Protection Bureau ATTN: PRA Office 1700 G Street NW Washington, DC 20552 RE: OMB Control Number: 3170-XXXX, Docket No: CFPB-2015-0037 - Web- Based Quantitative Testing of Point of Sale/ATM (POS/ATM) Overdraft Disclosure Forms Dear PRA Officer: The Consumer Bankers Association (CBA)1 writes in response to the Consumer Financial Protection Bureau’s (Bureau)...
  • September 11, 2015
    CFPB Publishes Notice for Consumer Survey on Overdraft On Wednesday, September 9, 2015, the CFPB published a notice in the Federal Register seeking approval for a web-based consumer survey on overdraft services. The survey is likely to be the last effort by the Bureau to collect data before it initiates a rulemaking process on the issue. This is the first direct consumer survey the agency has...
  • June 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...
  • June 17, 2015
    Overdraft fees, one of the most hated charges in existence, are getting smaller. And the loss of revenue is costing banks dearly. The Wall Street Journal, citing data from economic research firm Moebs Services Inc, reports revenue from overdraft fees is down 4% from last year, the largest drop since 2011. Overdraft fees tend to dwarf other consumer-related revenue streams like ATM and maintenance...
  • June 16, 2015
    Long a cash cow for banks, overdraft fees are shrinking fast thanks to tighter regulation and moves by firms to make policies more customer-friendly. More large banks are waiving certain overdraft fees, capping the number of times customers can incur the charges and processing transactions in the order they occur rather than by the dollar amount. The changes are hitting the bottom line, analysts...
  • June 12, 2015
    Student Loan Repayment – The Responsible vs. The Irresponsible This week, MeasureOne released its latest report on private student lending. Once again, it shows banks are working in a responsible manner with students—roughly 98 percent of loans are in repayment. This news comes on the heels of a New York Times op-ed published last weekend entitled, “ Why I Defaulted on My Student Loans .” An...
  • June 10, 2015
    In December, Shaquita Thomas ordered the most expensive pizza she has ever bought. She paid with her debit card, believing she had enough money in her checking account to cover the $15 tab. She was wrong, but didn't know about it until weeks later when she received her statement from Dollar Bank. She had overdrawn her account by $5, which brought a $20 fee. The cost for one extra-large pepperoni...
  • May 12, 2015
    Washington, D.C. (May 12, 2015) – Richard Hunt, President and CEO of the Consumer Bankers Association (CBA), issued the following statement in response to a 2015 Pew report entitled, “Checks and Balances.” “Consumer choice is paramount in our industry, and CBA believes customers should be able to decide how best to meet their short-term funding needs. As Pew highlights in its 2015 report, 100% of...
  • May 12, 2015
    Some checking-account practices have become more consumer-friendly, but significant issues persist with banks’ overdraft policies, according to a report released Tuesday. More banks are providing concise disclosures about their checking-account fees and terms, according to Pew Charitable Trusts, a nonprofit public-policy organization. But many consumers don’t fully understand the rules, and banks...
  • May 1, 2015
    CFPB Announces Webinar on TRID Rule On Thursday, April 30, 2015, the CFPB announced it will hold a 60-minute webinar on Tuesday, May 26, 2015 at 2 p.m. EDT to answer frequently asked questions about the TILA/RESPA Integrated Disclosure rule (TRID). The webinar will be hosted by the Federal Reserve. Those interested may register here . CFPB Takes Action on Mortgage Kickbacks On Wednesday, April 29...

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