The Consumer Financial Protection Bureau should not impose any additional regulatory requirements on financial institutions offering overdraft services, ICBA wrote. In a comment letter on the bureau's review of its overdraft rule, ICBA wrote that the CFPB should instead work with other regulatory agencies to:
- ensure regulatory guidance provides financial institutions the flexibility to serve customers,
- provide compliance certainty in the marketplace, and
- streamline guidance while considering the relationship-based community bank model.
Under the CFPB rule, financial institutions may not charge consumers a fee for paying ATM and one-time debit card transactions that overdraw an account, unless they affirmatively consent to overdraft coverage for these transactions. The CFPB is reviewing whether the rule should be continued, amended or rescinded to minimize the effect on small entities.
Read ICBA Comment Letter