CFPB continues overdraft program data collection, seeks survey
WASHINGTON (9/15/15)--Consumer Financial Protection Bureau (CFPB) staff updated CUNA and other financial trade associations on the status of potential rulemakings in a meeting Monday. Despite a pre-rule action on overdraft programs appearing on the bureau’s last rulemaking agenda, the CFPB said is still gathering information on overdraft programs.
“The bureau is still doing data collection on overdraft programs, which is important so it can better understand how consumers use these products,” said Leah Dempsey, CUNA’s senior director of advocacy and counsel, who attended the meeting. “So we think this makes it unlikely that any action happens in the fall.”
Luke Martone, senior director of advocacy and counsel for CUNA, also attended.
The CFPB issued a notice last week requesting information on point of sale and ATM overdraft disclosure forms. The bureau has requested to the Office of Management and Budget that it conduct a national web survey of 8,000 individuals as part of this study. Comments are due by Nov. 3.
CUNA, along with the other organizations present Monday, urged the CFPB to allow industry stakeholders a chance to see they survey while the comment period is still open, allowing them to incorporate thoughts on the survey into comment letters.
The CFPB agreed and indicated that the public will have a chance to comment on a draft version of the survey.
CUNA wrote to the CFPB in June regarding its examination of overdraft programs. CUNA urged the bureau to consider the value consumers place on overdraft programs as a convenient, as well as the costs to credit unions associated with providing the service.
The CFPB’s payday lending plan, first released in March, was also discussed. The bureau indicated that it is still engaging with stakeholders that will be impacted by the rulemaking, as well as other regulators.
CUNA, in a letter sent to the bureau in June, told the CFPB that while they support stronger consumer protections, the NCUA PAL program is an important alternative to predatory loans, and any rulemaking should not impact credit unions ability to offer these and similar loans.
The Government Accountability Office is also investigating whether the CFPB has properly assessed the impact of the proposal.