The CFPB released a proposal Wednesday that would apply Truth in Lending Act provisions to overdraft services charged by financial institutions with more than $10 billion in assets.
America’s Credit Unions strongly opposes efforts to limit the availability of overdraft services and previously wrote to the CFPB that overdraft fees are not junk fees, disclosures are clear, and overdraft services are understood and requested by consumers.
“The CFPB has deliberately exceeded its intended purpose at the expense of the hardworking Americans they claim to protect. Its latest overdraft fee proposal is another devastating blow to working class Americans as it takes away a lifeline many consumers in financial distress rely on to make ends meet,” said America’s Credit Unions President/CEO Jim Nussle. “We have worked tirelessly to ensure our credit union members can provide the services their members need when it comes to their financial planning and goals when opting into these products. The bureau must be held accountable for its war on American families and Main Street America.”
Access an initial summary of the proposal here.
Credit unions have engaged with both the CFPB and Congress on the topic, demonstrating that legislation or policy to limit the availability of overdraft services could harm access to credit.
The New York Times covered Nussle’s statement of opposition in its coverage of the proposal.