Press
NAFCU: CFPB’s continued efforts on overdraft are regulatory overreach
WASHINGTON, DC (June 8, 2015) — National Association of Federal Credit Unions (NAFCU) Director of Regulatory Affairs Alicia Nealon issued the following statement regarding the Consumer Financial Protection Bureau’s (CFPB) data collection request to Fiserv, a core processor, on overdraft programs based on recent media reports.
“The CFPB’s continued pursuit of data on overdraft programs constitutes extraordinary regulatory overreach,” said Nealon. “Moreover, NAFCU is extremely concerned that the costs of the Bureau’s wide-sweeping fishing expedition are going to trickle down to credit unions, as core processors, like Fiserv, will likely need to recoup the costs of complying with the orders. Credit unions should not have to foot the bill for CFPB’s discretionary activities, as they are already expending considerable resources to comply with the Bureau’s myriad new regulations.”
“Credit unions are focused on providing value to their members by offering responsible overdraft protection,” Nealon added. “Indeed, NAFCU’s November 2014 Economic & CU Monitor survey found that every respondent offered an alternative to overdraft or courtesy pay programs, with overdraft lines of credit and linked savings or money market accounts being the most popular (82.9 percent each). Additionally, 91.2 percent of respondents reverse overdraft charges on a case-by-case basis.”
During debate on the creation of CFPB, NAFCU was the only credit union trade organization that opposed the bureau having any regulatory or supervisory authority over the nation’s credit unions.
In March, NAFCU submitted a Freedom of Information Act request to the bureau seeking supporting documentation on the bureau’s findings on overdraft practices. NAFCU will continue to monitor CFPB’s activities regarding overdraft programs.
The National Association of Federal Credit Unions is the only national trade association that exclusively represents the interests of federally chartered credit unions before the federal government and the public.