CFPB: Final Rule Issued to Close Overdraft Loophole to Save Americans Billions in Fees
Final rule to save up to $5 billion each year Today, the Consumer Financial Protection Bureau (CFPB) took actionto close an outdated overdraft loophole that exempted overdraft loans from lending laws. The agency’s final rule on overdraft fees applies to the banks and credit unions with more than $10 billion in assets that dominate the U.S….
ABA: New Analysis Shows Vast Majority of Commenters Oppose Federal Reserve’s Changes to Debit Card Regulations
Nearly 80% of commenters find Fed’s debit card rule will negatively impact community financial institutions and consumers Nearly 80% of commenters – including academics, activists, banks and credit unions, consultants and fintechs, individuals, non-profits, payment card networks, and trade associations – oppose the Federal Reserve’s proposed rule that would lower the cap on debit card…
ABA: New National Consumer Polling Data on Major Bank Policy Issues Unveiled
Strong majorities value credit cards and overdraft protection, oppose lowering debit interchange fees, and support cannabis banking A new survey conducted by Morning Consult on behalf of the American Bankers Association found that a strong majority of U.S. consumers are happy with their credit cards and do not want the government to interfere with their…
CFPB: Action Taken to Stop Banks from Harvesting Overdraft Fees without Consumers’ Consent
Banks have charged overdraft fees for ATM and one-time debit card transactions even though they did not have customers’ documented consent Today, the Consumer Financial Protection Bureau (CFPB) published guidance to help federal and state consumer protection enforcers stop banks from charging overdraft fees based on phantom opt-in agreements. Phantom opt-ins occur when banks claim they have…
CFPB: Inquiry Launched into Junk Fees in Mortgage Closing Costs
Rising fees are draining down payments, pushing homeownership out of reach The Consumer Financial Protection Bureau (CFPB) today launched a public inquiry into junk fees that are increasing mortgage closing costs. The CFPB wants to understand why closing costs are increasing, who is benefiting, and how costs for borrowers and lenders could be lowered. According to a CFPB…
CFPB: New Published Research Finds Higher Price Complexity Leads Consumers to Pay More
As part of junk fee initiative, study suggests that consumers pay more when prices are separated into multiple fees Today, the Consumer Financial Protection Bureau (CFPB) issued a new report that suggests consumers tend to pay more for products that have more complex pricing structures. The report is based on experiments with multiple rounds of…
CFPB: Guidance Issued to Combat Junk Fees by Mortgage Servicers
Homeowners forced to pay for “services” that were prohibited or unauthorized The Consumer Financial Protection Bureau (CFPB) today published an edition of Supervisory Highlights describing the agency’s actions to combat junk fees charged by mortgage servicers, as well as other illegal practices. CFPB examinations found servicers charging illegal junk fees, such as prohibited property inspection fees; sending…
ABA: ABA & 52 State Bankers Associations Issue Comment Letter to CFPB Explaining that the Market for Overdraft Services is Already Transparent and Competitive
In a detailed comment letter filed today with the Consumer Financial Protection Bureau, the American Bankers Association joined all 52 state bankers associations in explaining why the market for overdraft services is already transparent and competitive, directly challenging the basic premise behind the Bureau’s misguided proposal to impose additional regulation on overdraft protection services. The letter spells…
CFPB: Action Taken to Halt False Claims of “Free” International Money Transfers
CFPB warns remittance transfer providers about false claims regarding cost and speed Today, the Consumer Financial Protection Bureau (CFPB) issued a new circular warning remittance transfer providers that false advertising about the cost or speed of sending a remittance transfer can violate federal law. Companies in the marketplace are charging junk fees on international money…
ABA: Consumer Survey Data Unveiled on Debit Cards, Overdraft and Other Banking Issues
In the wake of the Federal Reserve’s recent proposal to further lower the price cap on the debit interchange merchants pay to process debit card transactions, a new survey conducted by Morning Consult on behalf of the American Bankers Association finds that consumers are happy with their debit cards and think the government should leave…
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