The overdraft protection issue is being raised again – both by Congress and by the Consumer Financial Protection Bureau (CFPB). Credit unions nationwide are asked to take part in a national survey to address these concerns.
On May 9, Carolyn Maloney (D-NY) introduced the Overdraft Protection Act (H.R. 5691), aimed at extending the opt-in requirement for overdraft protection to paper checks, ACHs and recurring debit transactions, placing a cap on the number of fees per month and year, and other restrictions. There are no Missouri cosponsors at this time and MCUA is sharing credit union concerns with the Missouri delegation. Most cosponsors are Democrats in a Republican-controlled House of Representatives.
“The bill is a clear stalking horse for future effort in the House on the issue of overdrafts, and this bill goes quite a bit further in regard to checks,” says Mike Beall, MCUA president/CEO. “This bill is not likely to go forward in this Congress, and has the mark of good election year press for those signing on. However, we will be fighting these types of battles in every Congress to come.”
For more information about the Overdraft Protection Act and a list of cosponsors, click here.
More immediate action is needed to respond to the CFPB’s examination of overdraft protection programs, and the agency’s request for input. The Credit Union National Association (CUNA) has met with CFPB Director Richard Cordray to urge the agency to not include credit unions in any rules on overdraft.
In order to provide CFPB with information reflective of credit unions across the country, CUNA developed a 12-question survey for credit unions to share information regarding their overdraft protection programs, and overdraft transfer and marketing practices. The information provided will help the credit union movement address questions raised by the CFPB and also can be utilized in regards to legislation introduced in Congress in regards to overdraft protection.
Missouri credit unions are urged to take part in the overdraft protection survey from CUNA. The survey does not collect identifying information and participation is anonymous. Click here to take part. Responses are due by May 25.