After the Consumer Financial Protection Bureau last week extended the deadline to comment on "exploitive junk fees" charged by financial institutions, the bureau published another blog post targeting overdraft fees.
Blog Post: In its latest post, the CFPB said overdraft fees exploit payment timing and processing issues, can be expensive and excessive, and can lead to account closures.
Credit Cards: The post came a day after the CFPB issued a report on credit card fees and said issuers have made the penalties “a core part of their profit model.”
ICBA Response: ICBA has called the request for information a "misguided effort that paints a distorted and misleading picture” of the industry while reiterating that community banks already follow multiple federal laws and the CFPB's own rules requiring them to clearly disclose terms and fees.
Comment Period: Responses to the CFPB’s RFI are due by April 11.