Notably absent from the Bureau of Consumer Financial Protection’s spring rulemaking agenda is a potential rulemaking on overdraft services for checking accounts. CUNA has long been concerned about potential rulemaking in this area, as it believes the bureau has not conducted a comprehensive study into overdraft products and the benefits consumers see from them.
“The bureau abandoning an overdraft rulemaking is a victory for credit unions, and the result of CUNA and the leagues advocating strongly on behalf of credit unions and members who choose to utilize overdraft products and services,” said Elizabeth Eurgubian, CUNA deputy chief advocacy officer. “We repeatedly expressed to the bureau that overdraft services are provided by credit unions as a convenience for their members. A bureau rulemaking would have likely placed barriers between this sought-after service and consumers.”
CUNA most recently expressed these concerns in a January letter to the bureau, in which it shared numerous concerns and encouraged the bureau to conduct additional studies on overdraft to ensure it has a full understanding of the benefits that come from these services.
The CFPB released reports in 2017, 2014, and 2013 on overdraft, all of which relied on transaction-level data from 2011 and 2012 provided by a small number of large banks.
The bureau’s spring rulemaking agenda does include proposed rule activity on debt collection, home mortgage disclosures and short-term, small-dollar lending, among others.