CFPB Report On Overdraft Out Today
The CFPB today will release a report on financial institutions’ overdraft practices and policies and their impact on consumers – one of two reports expected from data collected in follow-up to the bureau’s February 2012 request for information on this service.
Dan Smith, assistant director of the bureau’s new Office of Financial Institutions and Business Liaison, launched the call Monday with financial industry trades. The report being released today looks at market and contextual factors in the offering of overdraft services. Another will be released later that drills down to transaction-level data.
CFPB Director Richard Cordray phoned NAFCU President and CEO Fred Becker about the report in advance of Monday’s industry call.
Today’s report looks at the impact on consumers of financial institutions’ overdraft policies since the 2010 implementation of a consumer opt-in requirement under Regulation E. Smith said the data show a significant impact on consumers of the change in policy and on those who decided to opt into the service.
Cory Stone, CFPB’s assistant director of deposits, cash, collections and reporting markets, noted some of the report’s key findings:continue reading »