24 state attorneys general, the D.C. attorney general, and the Executive Director of the Hawaii Office of Consumer Protection have sent a joint comment letter to the CFPB urging it not to make any changes to the Regulation E rule that limits the ability of financial institutions to charge overdraft fees for paying ATM and
Overdrafts
FDIC 2018 Consumer Compliance Supervisory Highlights focuses on overdraft, RESPA, Regulation E, deferment, and finance charge calculation exam findings
By Bowen "Bo" Ranney & James Kim on
Last week, the FDIC published its Consumer Compliance Supervisory Highlights that provides observations about its consumer compliance supervision activities in 2018. Importantly, the highlights include anonymized 2018 exam findings regarding violations of consumer protection laws and other information to help financial institutions stay abreast of issues and trends identified during exams and assist them in…
CFPB issues plan for review of rules and launches review of overdraft rule
By Barbara S. Mishkin on
Posted in Overdrafts, Regulatory and Enforcement
The CFPB has issued a plan for the periodic review of its rules that have a significant economic impact upon a substantial number of small business entities. It also announced that it was launching the first such review, which will look at the overdraft rule adopted in 2009.
Rules Review Plan. Section 610 of…
CFPB to seek OMB approval for testing of overdraft disclosures
By Alan S. Kaplinsky on
The CFPB has published a notice in the Federal Register announcing that it plans to seek OMB approval to conduct online testing of ATM/overdraft disclosures with 8,000 individuals. Comments are due on or before January 16, 2018.
According to the notice, the testing “will explore consumer comprehension and decision-making in response to overdraft disclosure forms. …
TCF National Bank obtains dismissal of CFPB’s Regulation E claims in overdraft services lawsuit
By Alan S. Kaplinsky on
This past January, the CFPB filed a lawsuit against TCF National Bank in Minnesota federal district court that alleged that the bank, in connection with offering overdraft services, violated the Consumer Financial Protection Act’s UDAAP prohibition and Regulation E (which implements the Electronic Funds Transfer Act). Earlier this month, the district court granted in part…
ABA responds to CFPB prototype overdraft opt-in forms and overdraft report
By Barbara S. Mishkin on
Posted in Overdrafts, Regulatory and Enforcement
Earlier this month, the CFPB issued another report on checking account overdraft services, “Data Point: Frequent Overdrafts,” and four one-page prototype model forms to replace the current Regulation E model form for banks to use to disclose overdraft fees and obtain a consumer’s consent to the bank’s overdraft service for ATM and one-time debit…
CFPB issues third report on checking account overdraft services and model form prototypes
By Barbara S. Mishkin on
Posted in Overdrafts, Regulatory and Enforcement
The CFPB has issued another report on checking account overdraft services, “Data Point: Frequent Overdrafts.” The new report represents the CFPB’s third report dealing with overdraft services. It previously issued a white paper in June 2013 and another “Data Point” report in July 2014.
In addition to the new report, the CFPB released…
CFPB Fall 2016 rulemaking agenda published
By Barbara S. Mishkin on
The CFPB’s Fall 2016 rulemaking agenda has been published as part of the Fall 2016 Unified Agenda of Federal Regulatory and Deregulatory Actions. The preamble indicates that the information in the agenda is current as of October 19, 2016. Accordingly, given the results of the Presidential election, including its potential impact on the CFPB’s leadership,…
CFPB participates in Fed webinar on overdraft practices
By Barbara S. Mishkin on
Posted in Overdrafts, Regulatory and Enforcement
On November 9, 2016, the Federal Reserve hosted a webinar on overdraft practices. The CFPB was represented by Victoria Pawelski, Counsel, Supervision Policy, Supervision, Enforcement and Fair Lending. In addition to a CFPB representative, the presenters included representatives from the Fed, FDIC, OCC and NCUA.
The presenters each discussed issues identified by their respective agency…
CFPB to participate in Fed webinar on overdraft practices
By Barbara S. Mishkin on
Posted in Overdrafts, Regulatory and Enforcement
The Federal Reserve has announced that on November 9, 2016, it will host a webinar on overdraft practices. Webinar speakers will discuss issues identified through consumer complaints, examinations, and enforcement actions.
In addition to a CFPB representative, the speakers will include representatives from the Fed, FDIC, OCC and NCUA. The presentation will be followed by…