Overdraft Fees

News & Analysis as of

CFPB Report: Overdraft Fees “Impose Heavy Costs” on Consumers

Expressing concern about the cost to consumers of opting in to receive overdraft protection, the Consumer Financial Protection Bureau (CFPB) released a new report furthering speculation about regulatory action....more

17,000% APR or No Credit: What Is the True Cost of Overdrafts?

On Wednesday, July 31, 2014, the Consumer Financial Protection Bureau (CFPB) published a study of customer experiences with overdrafts at several large banks with over $10 billion in assets. Note that no credit unions or...more

CFPB Concerned Overdraft Opt-In Requirement Not Protecting Consumers

On July 31, the CFPB released its latest assessment of overdraft data it has collected from large banks. The report provides the following summary findings: ?Overdraft and non-sufficient funds (NSF) fees constitute the...more

CFPB releases more overdraft program data as a prelude to likely rulemaking

The CFPB moved closer to likely rulemaking on overdraft programs with the release late last week of a new report entitled “Data Point: Checking account overdraft.” The report is based on account-level and...more

U.S. Bank Wins Coverage Under Delaware Law For $55 Million Overdraft-Related Settlement

Three class actions were filed against U.S. Bank in 2009 with identical allegations. The plaintiffs claimed that instead of applying transactions in chronological order, the bank posted transactions from the highest amount to...more

Insurance Recovery Law - July 2014 #2

U.S. Bank Wins Coverage Under Delaware Law For $55 Million Overdraft-Related Settlement - Why it matters: In a victory worth tens of millions of dollars, a Minnesota federal court ruled that U.S. Bank is...more

Updated CFPB Rulemaking Agenda Adds Auto Finance Larger Participant Rule, Updates Timelines For Other Rules

The CFPB recently released its latest rulemaking agenda, which lists for the first time a larger participant rule that would define the size of nonbank auto finance companies subject to the CFPB’s supervisory authority. ...more

Regional FDIC Office Releases Overdraft Fee Guidance

Earlier this month the Kansas City Regional Office of the Federal Deposit Insurance Corporation (FDIC) released updated guidance on overdraft fees. The Regional Office noted that many changes have occurred in the...more

Georgia Carves Overdraft, Other Fees Out Of Usury Limit Applicable To State Banks

On April 15, Georgia Governor Nathan Deal signed HB 824, which amends state law to clarify that certain banking fees are not “interest” subject to the state’s usury cap applicable to state-chartered institutions. ...more

FDIC regional offices issue UDAP guidance on continuous overdraft fees

Based on the CFPB’s rulemaking agenda issued in December 2013, we continue to expect overdraft programs to be the subject of another CFPB white paper and/or an advance notice of proposed rulemaking this year. (In June 2013,...more

Massachusetts Division of Banks Sets Cap on Returned Check Fees Allowable for State-Chartered Banks

The Massachusetts Division of Banks established the maximum fee that state-chartered banks and credit unions are permitted to assess consumer accounts in connection with processing a dishonored check. ...more

EDNY Judge Substantially Narrows Claims In Consolidated Overdraft Class Actions

On March 5, the U.S. District Court for the Eastern District of New York held that the named plaintiffs lack standing to bring claims in a multidistrict class action alleging illegal overdraft practices by a national bank. In...more

Director Cordray confirms 2014 focus on payday and other small-dollar loans

According to a report by Kim Chipman and Carter Dougherty of Bloomberg, in a Q&A with state attorneys general that followed a speech today in Washington, D.C. to the National Association of Attorneys General, Director Cordray...more

Industry trade group seeks higher asset trigger for new requirement to report overdraft and other consumer deposit account service...

The Independent Community Bankers of America (ICBA) wants to limit the application of a new Call Report requirement for banks to include a breakdown of their income from service charges on consumer deposit accounts. ...more

FRB Seeks Comment on Multiple Changes to its Policy on Payment System Risk

The FRB issued a request for public comment (the “Request for Comment”) to Part II of the FRB’s Policy on Payment System Risk; Procedures for Measuring Daylight Overdrafts (the “PSR Policy”). The changes to the PSR Policy...more

CFPB Publishes Rulemaking Agenda

The CFPB published a semi-annual update of its rulemaking agenda. The rulemaking agenda includes a number of rulemakings on disclosures under the Home Mortgage Disclosure Act and its implementing regulation, Regulation C, the...more

CFPB releases compliance costs report

The CFPB recently released a report on the operational costs of regulatory compliance. The 176-page report is entitled “Understanding the Effects of Certain Deposit Regulations on Financial Institutions’ Operations: Findings...more

Financial Services Law -- Nov 21, 2013

Bank Can Be Liable Under California Law for Overdraft Fee Charge Ordering - A checking account that includes a debit card feature is a “service” under California’s Consumer Legal Remedies Act, according to a new...more

N.D. Cal. Holds Debit Cards Are “Services” For Purposes Of The CRLA

On October 25, the United States District Court for the Northern District of California partially denied a bank’s motion for judgment on the pleadings seeking to dispose of class claims under California’s Unfair Competition...more

ABA makes suggestions to CFPB for overdraft study

The American Bankers Association has sent a letter to the CFPB responding to the CFPB’s June 2013 white paper reporting its initial data findings on overdraft programs. When the paper was issued, we observed that regulation...more

Class Action Claim for Excessive Fees is Not Covered by Bank’s Liability Policy

A Georgia federal district court ruled on August 7th that a bank was not entitled to insurance coverage for class action claims based on its allegedly excessive overdraft fees....more

Rules Creating Exemptions to the ATR Rule Finalized

The Consumer Financial Protection Bureau (CFPB) recently finalized rules that modified and created specific exemptions to the CFPB’s Ability-to-Repay Rule. The rules have three main effects....more

Pew Report on Checking Account 'Best Practices' Draws Questionable Conclusions

The Pew Charitable Trusts has released a report on the safety and transparency of checking accounts. The study questions whether banks are sufficiently engaged in what Pew deems "best practices" and concludes that the...more

CFPB Director Cordray Addresses Overdraft Fees

In prepared remarks given on June 11, Consumer Financial Protection Bureau (CFPB) Director Richard Cordray summarized the CFPB’s preliminary report on the overdraft practices of banks and other financial institutions....more

CFPB Report Questions Overdraft Practices

On June 11, the CFPB released a white paper with initial findings from its study of bank and credit union overdraft practices. ...more

34 Results
|
View per page
Page: of 2