Removing Barriers Blog

CUNA Recommends CFPB Amend Overdraft Model Form
Posted November 25, 2019 by Chandler Schuette

CUNA wrote to CFPB Director Kathy Kraninger to recommend the Bureau modify the Model Consent Form for Overdraft Services (§ 1005.17) provided in Regulation E.  Today’s letter follows-up on an separate overdraft-related letter sent in response to the Bureau’s review of the 2009 Overdraft Rule pursuant to Section 610 of the Regulatory Flexibility Act (RFA).

The Bureau has expressly stated it has no plans to issue a rulemaking that would limit consumers access to overdraft services. However, under the statutorily-required RFA Review, the Bureau is re-examining the rule with an eye toward mitigating economic impact, reducing compliance costs, and clarifying requirements as necessary.

With those goals in mind, CUNA called on the Bureau to adopt a more expansive safe harbor from liability for use of the form and update the form to ensure it contains clear and concise language regarding standard overdraft protection practices, and permits financial institutions to voluntarily add supplementary information and modifications that bolster consumer understanding of specific procedures.