Credit unions say the CFPB proposed overdraft rule is misguided

Although comments on the proposed rule are not due until April 1, credit unions in the South already are blasting the Consumer Financial Protection Bureau for its proposal to limit overdraft fees at large banks and credit unions.

“Rome Kraft Employees Credit Union is adamantly opposed to regulation that seeks to limit or alter overdraft services provided by credit unions,” Diane McCoy, president/CEO of the Rome Kraft Employees Credit Union in Rome, Ga. wrote, in a letter to the CFPB.

She continued, “interfering with credit unions’ charge to serve their members is a fundamentally flawed approach and it will have massive unintended consequences. The CFPB should immediately and fundamentally rethink its approach to overdraft programs.”

McCoy’s sentiment was echoed by several other credit unions and by the League of Southeast Credit Unions. Many of the letters contain identical language, which suggests that credit union officials were working from a form letter template written by rule opponents.


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