WASHINGTON (5/13/15)--A recent report from the Pew Charitable Trusts reveals best practices credit unions can look to when crafting their overdraft service policies.
The report, which studied the practices of 45 of the 50 largest U.S. banks, found that while the Consumer Financial Protection Bureau (CFPB) has mandated that banks require consumers to opt-in to overdraft protection, the majority of those hit with fines don’t ever remember giving consent.
This signals that banks aren’t being transparent enough about the fees they charge their customers, Pew said.
“Customers need the CFPB to set clear standards that bring safety and consistency to this market and help consumers to make informed choices,” said Susan Weinstock, Pew consumer banking project director.
In the report, Pew defines best practices for overdraft services as clearly disclosed terms that:
The policy recommendations to the CFPB that Pew formed based on the research include requiring financial institutions to: