Banks’ Billions in Overdraft Fees Seen Dodging Tough U.S. Rules
The Consumer Financial Protection Bureau is leaning against subjecting banks to new rules that would cap the size and frequency of overdraft charges, according to sources briefed on the agency’s work. Instead, the CFPB is likely to limit its action to barring lenders from reordering transactions, a practice in which the order of transactions is manipulated to maximize the number of overdrafts applied to an account. The CFPB may also require better disclosure of overdraft policies to consumers to help them avoid these fees. The CFPB hopes to balance its new consumer protection measures with the concerns of banks who assert that some consumers rely on the flexibility overdrawing their accounts provides.