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CFPB is taking a fresh look at bank overdraft fee rule

Tuesday, July 2, 2019
Renata Sago | Marketplace
Deborah Goldstein

The Consumer Financial Protection Bureau just wrapped up a public comment period on a rule that extends some protections to consumers who overdraw their checking accounts. The CFPB must examine the rule under a federal law that requires agencies to review rules that might affect small businesses.

Before the Federal Reserve Board set the 2009 overdraft rule, banks could automatically enroll people in overdraft protection and slap them with a fee — typically around $35 per transaction. With the rule in place, people can choose to have banks reject purchases at the point of sale instead to avoid those fees.