CFPB Director Richard Cordray said the CFPB does not plan to prohibit financial institutions from charging overdraft fees.
Although he stressed during an online town hall meeting with NCUA Chairman Debbie Matz on Tuesday the bureau has not decided how to address the issue, Cordray also did not rule out new restrictions.
“We are not going to be banning the overdraft product. I don't know that we would have the authority to do that and I also don't know think that's justified,” Cordray said. “As to whether we will have certain modifications and constraints around existing practices, that will all depend on what we see in the data but I would encourage people to continue to give us plenty of feedback.”
According to NCUA officials, nearly 1,000 people registered for the webinar, and nearly 700 logged in simultaneously.
Cordray said the CFPB is examining several overdraft issues that have been “bones of contention,” including the size of fees, frequency of fees, occasions for fees and the ordering of transactions.
He reiterated that the CFPB's plans are uncertain and not imminent at this point.
“We don't even have a proposal out,” he said.
Matz was asked for an update on the fixed assets waiver proposal, particularly what changes the industry can expect.
“We are carefully analyzing the comments that we received so thank you to all of you who took the time to send your comments to us,” she said. “We are hoping to have a final rule in the next couple of months. I can't be certain about that because we're still discussing amongst ourselves what some of the changes are we should make.”
Matz added that the NCUA would like to eliminate the waiver process because it is not productive for credit unions. She said the rule would certainly be finalized by the summer.
“It's not a good use of your time and it's not a good use of our time and so that's something that you can look forward to,” she said.
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