CUNA expects the Consumer Financial Protection Bureau (CFPB) to at least talk about overdraft protection programs later this year, writes Jared Ihrig, CUNA’s chief compliance officer, in CUNA’s 2015-2016 Environmental Scan.
CFPB collected a lot of information about overdraft protection programs, but says that it will do nothing on the issue until at least after the first half of this year. CFPB Director Richard Cordray acknowledges the bureau has no authority to regulate overdraft protection fees and that it will not ban these products and will address payday lenders first.
It’s unclear whether or how CFPB will act.
Notably, the Dodd-Frank Act doesn’t mandate action on the issue. CFPB won’t make any changes to accepted practices until at least 2016, and ultimately might not act at all.
Still, credit unions should prepare to advocate for their position during any comment period on any proposed regulations.
Credit unions—and their members—value this product highly, Ihrig says.