CFPB Issues Proposed Overdraft Rule Review in Federal Register

The Consumer Financial Protection Bureau (CFPB) is conducting a review of the Federal Reserve's 2009 overdraft protection rule to determine the effects on small banks and credit unions.

The CFPB said Monday it is seeking public comment on whether the overdraft rule “should be amended or rescinded” to minimize “any significant economic impact.” 

The Bureau is conducting a review of the Overdraft Rule consistent with section 610 of the Regulatory Flexibility Act. As part of this review, the Bureau is seeking comment on the economic impact of the Overdraft Rule on small entities. These comments may assist the Bureau in determining whether the Overdraft Rule should be continued without change, or amended or rescinded to minimize any significant economic impact of the rules upon a substantial number of such small entities, consistent with the stated objectives of applicable statutes.

In 2009, the Federal Reserve Board issued a rule that limits the ability of financial institutions to assess overdraft fees for paying automated teller machine (ATM) and one-time debit card transactions that overdraw consumers' accounts. The rule amends Regulation E, which implements the Electronic Fund Transfer Act (EFTA). The Bureau recodified Regulation E, including the amendments made by the Overdraft Rule, in 2011 when the Bureau assumed rule-making responsibility under the EFTA.

Click here to view the Bureau’s proposed rule review that was published in the Federal Register May 15.

Click here for the Bureau’s notice of review and instructions to submit a comment on the 2009 Overdraft Rule.

Comments must be received by the agency July 1, 2019.