Release date: 7/2/2019
(RALEIGH) Attorney General Josh Stein today submitted comments opposing any effort by the Consumer Financial Protection Bureau (CFPB) to roll back or limit its Overdraft Rule. The Overdraft Rule protects consumers by informing them about their banks’ overdraft services and letting consumers make the choice to opt in to overdraft services on ATM and one-time debit transactions.
“The Overdraft Rule gives people the information they need to protect their money,” said Attorney General Josh Stein. “I urge the CFPB to keep these protections in place so that North Carolinians can continue making the choices that are best for them.”
The Overdraft Rule, which went into effect in 2010, recognized that many consumers received overdraft services by default, but were never given clear information about their options and the fees their financial institutions charge. The rule helps consumers make more informed choices about overdraft services and reduces the overall number and amount of overdraft fees for those who do not to opt in. The rule has specifically benefitted consumers with frequent overdrafts, who on average tend to live under more stressful financial circumstances.
In their comments responding to the CFPB’s request for comment on the economic impact of the Overdraft Rule, the coalition of 25 attorneys general emphasized that there is no basis to believe that the Overdraft Rule would place any additional economic burden or cost on small financial institutions, and that compliance has been straightforward, simple, and saved costs. The CFPB has also not published any data or research to demonstrate any economic burden as a result of the Overdraft Rule.
Attorney General Stein is joined in submitting these comments by the Attorneys General of New York, California, Colorado, Delaware, the District of Columbia, Hawaii, Illinois, Iowa, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nevada, New Jersey, New Mexico, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington, as well as the Executive Director of the Hawaii Office of Consumer Protection.
A copy of the comments letter is available here.
Contact:
Laura Brewer (919) 716-6484