ABA Statement on CFPB’s Final Overdraft Rule

“We’re deeply disappointed that the CFPB has chosen to finalize this misguided rule at a time when every other federal bank regulator has stopped issuing new regulations. By taking this action, the Bureau has once again chosen to prioritize demonizing highly regulated and transparent bank fees over its mission to help consumers. This rule, and the government price controls that accompany it, will make it significantly harder for banks to offer this valuable service to their customers, including those who have few other options to cover essential payments. In finalizing the rule, the CFPB is ignoring the strong majority of Americans who have indicated time and again in national surveys that they value and appreciate overdraft protection, and they don’t want it to go away.

“In addition to the consumer harm this rule will cause, it‘s yet another example of the CFPB’s willingness under Director Chopra to exceed its Congressionally mandated guardrails. The Bureau has no legal authority to subject overdraft services offered by any financial institution to Regulation Z, much less implement a price cap on overdraft protection. We will closely review the final rule with our members and consider all options going forward. It should not be allowed to go into effect.”