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.
Diane joined Banker’s Compliance Consulting with over 10 years of compliance experience and over 15 years of experience within the financial industry. Diane is a Certified Regulatory Compliance Manager (CRCM) and has a Bachelor’s Degree in Sociology with a concentration in Criminal Justice. She is a graduate of the Schools of Banking Compliance School and has participated in various other training opportunities throughout her career. Diane understands firsthand the struggles banks face in building and maintaining successful compliance programs. Her experience and common sense approach to consumer compliance is a great asset to our clients.
Diane and her husband have two kids who keep them busy. She enjoys running and other sports and is a big Bugs Bunny fan! She’s a bit crazy in that she does enjoy reading some of these regulations and she’s a “crazy cat lady!” Her cat tales are hilarious!