Regulators
HIGHLIGHT
The Federal Reserve Board has acknowledged that there is a big problem with the way banks and credit unions are now handling their customers’ overdrafts. The stronger of two rules they have proposed would require that banks get explicit permission from their customers before enrolling them in high-cost overdraft systems that cover debits and ATM transactions. They received thousands of comments from consumers asking for the stronger rule, which would be a step in the right direction, however legislation is still needed to stop bank overdraft abuses that are not covered by the Fed rules.
- National Bank Regulator Enabled Overdraft Abuses
February 24, 2010The OCC has acknowledged problems with bank overdraft systems but has allowed the banks they regulate to use them.
- Congressional Proposal Would Curb Overdraft Abuses; Fed’s Rules Fall Far Short
February 2, 2010 - Quick Facts on Overdraft Loans
April 9, 2009Brief facts about overdraft loans, largely derived from CRL research
- Comments on Regulation E—Overdraft Practices
March 30, 2009The Center for Responsible Lending, along with Consumer Action, Consumer Federation of America, Consumers Union, National Association of Consumer Advocates, National Consumer Law Center (on behalf of its low-income clients), and U.S. PIRG provide the following comments regarding the Federal Reserve Board’s proposed rule to amend Regulation E pursuant to the Electronic Funds Transfer Act.
- Comment: Proposed Rule Regarding Unfair or Deceptive Acts or Practices – Overdraft Practices
August 4, 2008Overdraft comment letter
- Comments on proposed Regulation DD amendments re Overdraft Lending
July 18, 2008America, Consumers Union, and the National Consumer Law Center, provide the following comments regarding the Federal Reserve Board’s proposed rule to amend Regulation DD pursuant to the Truth in Savings Act (TISA).
- Require opt-in for overdraft
June 13, 2008CRL discusses importance of requiring banks to get explicit permission from customers before enrolling them in high-cost overdraft.
- Comment: Proposed FDIC Survey of Overdraft Loan Programs
October 16, 2006Proposed FDIC Survey of Overdraft Loan Programs
- Require TILA Disclosures For Overdraft Loans
June 14, 2004CRL ask the FED to put overdraft loans under the Truth in Lending Act under the grounds that they are an extension of credit.
