Future of overdraft rule may be inching toward resolution, bureau regulatory agenda suggests

Overdraft protection may be coming up again soon at the federal consumer financial protection agency – but it’s not clear precisely when, according to the fall 2019 rulemaking agenda posted by the agency Wednesday.

The Consumer Financial Protection Bureau (CFPB) said in a blog post that it is “carefully reviewing” comments received from its review (announced in May) of the 2009 overdraft rule. The review collected comments over 45 days and was aimed at collecting information about the rule on small banks and credit unions. (According to the bureau, the rule 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 Bureau is carefully reviewing the comments it received as part of the analysis required to support its determination pursuant to section 610 of the RFA (Regulatory Flexibility Act) that the (overdraft) rule be continued without change, amended, or rescinded,” the agency wrote.

The bureau announced the RFA on overdraft May 13. According to the bureau then, the notice “seeks comment on the economic impact of the Overdraft Rule on small entities. The public will have 45 days to comment after publication of the notice in the Federal Register.”

Among other items, the CFPB regulatory agenda includes:

  • Two new agenda items on loan originator compensation and use of electronic channels for originating and servicing credit card accounts. The bureau said the items were generated by last year’s “Call for Evidence” on 12 separate topics, “and various other outreach to stakeholders.”
  • Assessment of its regulations to consolidate various mortgage origination disclosures under the Truth in Lending Act and Real Estate Settlement Procedures Act (the TILA-RESPA Integrated Disclosures [TRID]). The CFPB said it must issue a report by October 2020 with the results of its assessment.
  • An RFA review of the Regulation Z rules implementing the Credit Card Accountability Responsibility and Disclosure Act of 2009.

Fall 2019 rulemaking agenda

Consumer Financial Protection Bureau Outlines Plan to Review Rules Under the Regulatory Flexibility Act

 

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