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Overdraft Fees Banking Sector Insufficient Funds

Alston & Bird

CFPB’s “Overdraft Lending” Rule Faces Immediate Legal Challenge

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What Happened? On December 12, 2024, the Consumer Financial Protection Bureau (CFPB) issued its final “overdraft lending” rule aimed at curbing overdraft fees charged by banks and credit unions with more than $10 billion in...more

Miller Nash LLP

Regulatory Update: Final Rule on Courtesy Overdraft Services

Miller Nash LLP on

We previously posted an article about a proposed rule that could drastically affect the courtesy overdraft services offered by many financial institutions (you can refresh your memory here). Well, the time has come. The...more

Orrick, Herrington & Sutcliffe LLP

Banking groups file complaint challenging CFPB’s overdraft lending rule

On December 12, several banking associations and individual financial institutions filed a complaint in the U.S. District Court of the Southern District of Mississippi against the CFPB, challenging its final rule amending...more

Cooley LLP

CFPB Issues Final Rule Limiting Overdraft Fees at Large Banks, Treats Overdraft as Credit

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On December 12, 2024, the Consumer Financial Protection Bureau (CFPB) issued a final rule that treats covered overdraft services offered by banks with more than $10 billion in assets (large banks) as credit, bringing them for...more

Clark Hill PLC

Navigating the New CFPB Overdraft Rule: Implications for Financial Institutions

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The Consumer Financial Protection Bureau (CFPB) recently finalized its “Overdraft Lending: Very Large Financial Institutions Rule,” introducing sweeping changes to how overdraft credit is structured and regulated for the...more

Orrick, Herrington & Sutcliffe LLP

CFPB finalizes overdraft lending rule for “very large financial institutions”

On December 12, the CFPB issued a final rule, restricting the amount that certain financial institutions can charge for their overdraft service. As previously covered by InfoBytes, historically, the Fed exempted banks from...more

Saul Ewing LLP

Big Banks, Beware – CFPB Issues Final Rule to Cap Overdraft Fees

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After nearly a year of speculation, the Consumer Financial Protection Bureau (“CFPB”) issued a final rule (the “Rule”) to cap overdraft fees that financial institutions with at least $10 billion in assets can assess to...more

Blake, Cassels & Graydon LLP

Consultation sur le plafonnement des frais d’insuffisance de fonds au Canada

Le 16 novembre 2024, le ministère des Finances a publié le projet de Règlement modifiant le Règlement sur le régime de protection des consommateurs en matière financière (le « projet de règlement ») et a lancé une période de...more

Blake, Cassels & Graydon LLP

Consultation on NSF Fee Restrictions: Proposed Amendments to the Financial Consumer Protection Framework Regulations

On November 16, 2024, the Department of Finance released Proposed Regulations Amending the Financial Consumer Protection Framework Regulations (Regulations) and opened a 30-day consultation period that closes on December 16,...more

Goodwin

CFPB Issues Guidance Emphasizing the Importance for Banks to Maintain Sufficient Proof of Customers’ Affirmative Consent to...

Goodwin on

In recent discussions surrounding banking practices, the issue of overdraft fees, particularly for ATM and one-time debit card transactions, has gained significant attention....more

Orrick, Herrington & Sutcliffe LLP

California bans state banks and credit unions from charging NSF fees

On September 24, the Governor of California signed AB 2017 (the “Act”) into law, prohibiting state-chartered banks and credit unions from charging NSF fees when consumers initiate transactions that are instantaneously or near...more

Orrick, Herrington & Sutcliffe LLP

Bank agrees to overdraft fee settlement for $1.5M

On July 25, a bank agreed to a class action settlement relating to overdraft fees in a case filed in May 2022. If the court approves, the settlement will provide $1.5 million to the class via a settlement fund. The lawsuit...more

Orrick, Herrington & Sutcliffe LLP

District Court grants bank a MSJ in overdraft fee class action case

On April 16, the U.S. District Court for the Eastern District of Michigan entered an opinion and order granting defendant bank’s motion for summary judgment in an overdraft fee-related consumer class action. In this case,...more

Orrick, Herrington & Sutcliffe LLP

Seventeen State Attorneys General comment on CFPB overdraft proposal

State Attorneys General from 17 states recently sent a letter to the CFPB endorsing its proposed rule to amend TILA. The 17 states included New York as principal, California, Colorado, Connecticut, Delaware, the District of...more

Cooley LLP

CFPB Issues Proposal to Eliminate Fees on Instantaneously Declined Transactions

Cooley LLP on

On January 24, 2024, the Consumer Financial Protection Bureau (CFPB) issued a notice of proposed rulemaking that would prohibit financial institutions from charging fees on transactions that are declined instantaneously or...more

Orrick, Herrington & Sutcliffe LLP

CFPB proposes rule making certain NSF fees “abusive”

On January 24, the CFPB released a proposed rule that would identify the charging of non-sufficient funds (NSF) fees on transactions that financial institutions decline instantaneously or near-instantaneously as an “abusive”...more

Orrick, Herrington & Sutcliffe LLP

Large bank agrees to proposed settlement agreement; to be decided in February

On November 27, 2023, a large Canadian bank agreed to pay $15.9 million to accountholders in a proposed settlement agreement stemming from a class action suit in which the bank allegedly charged improper non-sufficient fund...more

Orrick, Herrington & Sutcliffe LLP

CFPB reports on consumers’ experience with overdraft, NSF fees

On December 19, the CFPB released a report titled Overdraft and Nonsufficient Fund Fees: Insights from the Making Ends Meet Survey and Consumer Credit Panel, a report providing insight into consumers’ experience with...more

Orrick, Herrington & Sutcliffe LLP

CFPB reports decline in NSF fees by depository financial institutions, saving consumers billions

On October 11, the CFPB’s Offices of Consumer Populations and Markets announced that through its analysis of a number of depository financial institutions it had determined that the imposition of non-sufficient fund (NSF) fee...more

Orrick, Herrington & Sutcliffe LLP

Court orders credit union to pay $5 million to settle overdraft allegations

On June 27, the U.S. District Court for the Northern District of New York granted final approval of a class action settlement, resulting in a defendant credit union paying approximately $5.2 million to settle allegations...more

Goodwin

FDIC Refines Supervisory Strategy Concerning Multiple Re-Presentment NSF Fees Guidance

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Regulatory Developments - FDIC Refines Supervisory Strategy Concerning Multiple Re-Presentment NSF Fees Guidance - On June 16, the FDIC revised its Supervisory Guidance on Multiple Re-Presentment Non-Sufficient Funds...more

Venable LLP

FDIC Releases Revised Supervisory Guidance on Multiple Re-Presentment NSF Fees

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On June 16, 2023, the Federal Deposit Insurance Corporation (FDIC) released an update to its Supervisory Guidance on Multiple Re-Presentment NSF Fees (FIL-40-2022) (the "Guidance"), to provide additional guidance for...more

Orrick, Herrington & Sutcliffe LLP

FDIC revises NSF guidance

On June 16, the FDIC updated its Supervisory Guidance on Multiple Re-Presentment NSF Fees to clarify its supervisory approach for addressing violations of law. This new guidance, FIL-32-2023, updates FIL-40-2022 (originally...more

Ballard Spahr LLP

CFPB Spring 2023 rulemaking agenda includes proposed larger participant rule for nonbanks in consumer payments market

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The CFPB has released its Spring 2023 rulemaking agenda as part of the Spring 2023 Unified Agenda of Federal Regulatory and Deregulatory Actions.  The agenda’s preamble indicates that “[t]he Bureau reasonably anticipates...more

Orrick, Herrington & Sutcliffe LLP

CFPB says overdraft/NSF revenue has been cut in half

On May 23, the CFPB published another data spotlight reporting on overdraft/non-sufficient fund (NSF) fee trends. Earlier in the month, the Bureau examined low- and moderate-income consumers’ experiences with overdraft...more

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