Removing Barriers Blog

CFPB to Conduct RFA Review of 2009 Overdraft Rule
Posted May 14, 2019 by CUNA Advocacy

The CFPB published a notice announcing plans to periodically review regulations under the Regulatory Flexibility Act (RFA). As part of its RFA Review, the Bureau has issued a notice requesting public comment on the 2009 Overdraft Rule. 

Section 610 of the RFA requires agencies to review certain rules within 10 years of their publication, and consider the rules’ effect on small businesses. The purpose of the review is to minimize any significant economic impact of the rules upon a substantial number of small entities.  At the conclusion of each review, the Bureau will determine whether the rule should be continued without change, or should be amended or rescinded.

RFA Review: 2009 Overdraft Rule
The first RFA review conducted by the Bureau under Section 610 will be focused on the 2009 Overdraft Rule.  

In 2009, the Federal Reserve Board issued a rule that limits the ability of financial institutions to assess overdraft fees for paying automated teller machine (ATM) and one-time debit card transactions that overdraw consumers' accounts. The rule amends Regulation E, which implements the Electronic Fund Transfer Act (EFTA). The Bureau recodified Regulation E, including the amendments made by the Overdraft Rule, in 2011 when the Bureau assumed rulemaking responsibility under the EFTA. 

The public will have 45 days to comment on the economic impact of the 2009 Overdraft Rule on small entities.