Consumer Financial Protection Bureau Director Richard Cordray said his agency is discussing how best to proceed on additional regulations concerning overdraft protection and other checking account disclosures. The CFPB could issue proposed rules later this year.
He said the CFPB is worried about the practice by some financial institutions of clearing checks in a sequence that causes some consumers to pay higher overdraft charges. He made his comments in response to a question at a Feb. 8 virtual town hall meeting sponsored by the NCUA.
Cordray added that the CFPB will not duplicate existing rules so that financial institutions "won't have to deal with a cacophony of regulations." He said the rules on overdrafts and checking account disclosures will be part of the CFPB's "Know Before You Owe" program. The program already includes mortgage cost disclosures, student loans and credit card agreements
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