Washington, D.C. (Jan. 17, 2024)—Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on today’s Consumer Financial Protection Bureau proposed rule on overdraft services, which would exempt community banks under $10 billion in assets.

“While ICBA and the nation’s community banks continue reviewing the CFPB’s proposed rulemaking on overdraft services, we are encouraged that it would exempt community banks with less than $10 billion in assets. This critical exemption recognizes that community banks offer specialized overdraft products and services that are not commoditized but customized to meet the needs of their customers and local markets.

“As we review the rulemaking, ICBA will strongly advocate tiered regulation for community banks over $10 billion in assets to mitigate the impact of the rule on their customers and communities. Further, we continue to urge policymakers to cautiously consider the impact of restrictions on deposit account fees, which would have a negative ripple effect on customers and businesses that rely on these services without addressing fees for missed or late payments levied by merchants, utilities, landlords, and other payment stakeholders.

“Community banks provide a wide range of fully disclosed safeguards that customers may select to address situations in which they’ve overdrawn their account, including overdraft programs, free ad hoc solutions, status alerts, and transfers from designated accounts. Many consumers seek these services as a convenient protection against the domino effect of mounting fees caused by returned items, late bill payments, and merchant fees.

“ICBA looks forward to reviewing today’s proposal and submitting comments as we continue to work with the CFPB to ensure this rulemaking does not negatively impact community banks or the local customers and communities they serve.”

About ICBA
The Independent Community Bankers of America® has one mission: to create and promote an environment where community banks flourish. We power the potential of the nation’s community banks through effective advocacy, education, and innovation.

As local and trusted sources of credit, America’s community banks leverage their relationship-based business model and innovative offerings to channel deposits into the neighborhoods they serve, creating jobs, fostering economic prosperity, and fueling their customers’ financial goals and dreams. For more information, visit ICBA’s website at icba.org.