The Consumer Financial Protection Bureau (CFPB) has published a Notice and Request for Information on overdraft programs. The Dodd-Frank Act grants regulatory authority to the CFPB for the Electronic Funds Transfer Act and the Truth in Savings Act, which taken together, in part, govern consumer transaction accounts. The CFPB is reviewing existing regulations and supervisory guidance issued by various regulators pertaining to the use of overdraft programs by financial institutions.
To support this review, the CFPB seeks information on the impact of overdraft programs on consumers. They are seeking comments from the public, including consumers, overdraft program processors, and financial institutions. The Request for Information includes a dozen questions upon which the CFPB seeks information. Comments must be received on or before April 30, 2012 to be assured of consideration.
It is clear that this request is the initial step in a process that will lead to additional rules on overdraft protection programs.