CFPB Director Richard Cordray recently touched on the subject of overdrafts at a February town hall meeting organized by the NCUA.
While he acknowledged there can be positives associated with overdraft products and that there is no intent by the CFPB to ban such products, he did state that the CFPB is looking closely at the “the size of fees, frequency of fees, occasions for fees, the ordering of transactions“. He emphasized that any overdraft changes will be based on what they see in any data presented and encouraged any input. He also stated that overdrafts are “in the queue” but they are not at the front line of importance right at this moment. The most focus at this time is being directed at prepaid products, payday lending and HMDA.
This really doesn’t tell us much more than that overdrafts are still on the CFPB’s radar. However, with so much focus on other upcoming changes, it’s a good reminder that changes in this area should remain on your radar as well.