It’s crucial for credit union leaders to contact their members of Congress to address the Consumer Financial Protection Bureau’s (CFPB) proposed rule on overdraft protection, which could significantly impact more than 610 million checking account holders nationwide.
The CFPB’s proposed changes risk altering a vital financial tool that millions of Americans leverage to stay afloat through tenuous financial periods. Credit union leaders must emphasize to Congress the need for a balanced approach to overdraft protection, highlighting its critical role in everyday financial management and the potential negative effects of restriction or elimination.
Your credit union’s active participation is key. Please reach out to your representatives through the California and Nevada Credit Union Leagues’ Connect for the Cause campaign where you can share your concerns about maintaining accessible and fair financial services — easily and quickly.
Credit union leaders have an important opportunity to unite to ensure the credit union system continues to serve the best interests of all Americans. Your credit union’s support and voice are essential in shaping the future of overdraft protection.
You can read more here: CFPB’s Proposed Overdraft Rule: Key Takeaways for Credit Unions. As the CFPB recently 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 Leagues alerted 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”). In addition, view the proposed rule’s language here.
While banks and credit unions with assets below $10 billion would technically be exempt from the proposal, the implications of the proposed rule could be far reaching. While the Leagues are still analyzing the proposal’s implications and will keep credit unions updated on its comment letter to the CFPB going forward, here are key takeaways.