As the Consumer Financial Protection Bureau released its proposed overdraft rule outlining changes to how overdraft fees would be calculated and charged by financial institutions exceeding $10 billion in assets, the California and Nevada Credit Union Leagues alerted its members of some key facts.
You can view the CFPB’s long-awaited proposed overdraft rule here (financial institutions with assets of more than $10 billion are referred to as “very large financial institutions”). You can also view the proposed rule’s language here.
Banks and credit unions with assets below $10 billion would be exempt from the proposal. While the Leagues are still analyzing the proposed rule’s implications and will keep credit unions updated on its comment letter to the CFPB going forward, here are key takeaways:
As a member-owned entity, the Leagues know that credit unions across California and Nevada emphasize their commitment to minimizing fees and supporting members of modest means, prioritizing the movement’s “people helping people” philosophy. The Leagues have launched a Credit Union Overdraft Resources site for members to access, which includes talking points, facts, research, a downloadable opinion-editorial template, and a regulatory timeline.
“We will routinely update this site and notify you as the news media spotlights overdraft protection services, as well as federal and state regulators and legislators,” said Diana Dykstra, president and CEO of the Leagues. “Please take advantage of these resources to support your media relations efforts and internal conversations with staff. And above all, thank you for your patience as we continue advocating for your credit union on this important issue.”