CFPB LEADER HEARS OVERDRAFT CONCERNS
updated 08/15/14 02:38 PM
Regulatory Issues Discussed
Minimizing the impact of current rules, pending proposals, and contemplated requirements were key themes of a meeting Wednesday between the Credit Union National Association (CUNA) and Consumer Financial Protection Bureau (CFPB).
Concerns were raised over the possible regulation of overdraft plans by the CFPB, as well as a range of other regulatory concerns, such as the pending Regulation C proposal to implement changes to the Home Mortgage Disclosure Act (HMDA) under the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Attending the meeting was Dan Smith, assistant director of the Office of Financial Institutions and business liaison for the CFPB.
The California and Nevada Credit Union Leagues and CUNA will continue to press for favorable regulatory treatment for credit unions in light of the fact that credit unions didn’t engage in abusive practices leading to the financial crisis.
CUNA has advocated that credit unions should be exempt from overdraft regulations. Credit unions are consistently reported as having lower overdraft fees than banks. A report from Informa Research Services in April found that the median fee for overdrafting a checking account is $30.70, while it was $27.74 at credit unions.
In addition, banks with assets greater than $50 billion carry median overdraft fees of $35, while largest credit unions (with more than $5 billion in assets), charge an average of $25.