WBK Industry News - Federal Regulatory Developments

CFPB Pilots Supervision Effort on Overdraft and NSF Fees

The CFPB recently published a blog post discussing how the agency has been piloting a new supervision effort this year relating to the consumer impact of overdraft and non-sufficient fund (NSF) practices.

The post explains that the CFPB has requested information from entities including relating to their overdraft fees, grace periods, dollar thresholds and any fee caps.  The CFPB also requested data from certain institutions on the following:

  1. Total annual dollar amount consumers receive in overdraft coverage compared to the amount of fees charged.
  2. Annual dollar amount of overdraft fees charged per active checking account.
  3. Annual dollar amount of NSF fees charged per active checking account.
  4. Prevalence of frequent overdrafters: the share of active checking accounts with more than 6 and more than 12 overdraft and/or NSF fees per year.
  5. Share of active checking accounts that are opted into overdraft programs for ATM and one-time debit transactions

The CFPB says that it will use this information to identify institutions for further examination, provide feedback to institutions, and that it also intends to share the information with other regulators. 

This blog post highlights the CFPB’s continued focus in this area.  See WBK’s prior coverage of CFPB interest in overdraft and NSF fees here and here.