Newsroom

The CFPB Credit Union Advisory Council, which includes several NAFCU-member representatives, will discuss overdraft and financial empowerment initiatives during a public meeting Sept. 7 at the bureau's headquarters in Washington.

NAFCU will attend the meeting, which is slated to begin at 3:30 p.m. Eastern.

Earlier this month, the CFPB released new overdraft disclosure prototypes meant to improve those used by financial institutions – including credit unions – in order to help consumers better understand the risks and costs of opting into overdraft coverage. The CFPB also released a report which found that those who opt into overdraft coverage typically pay substantially more in overdraft fees. The study is based on data from several large banks the CFPB said account for more than 40 million consumer checking accounts.

Upon the CFPB's release of this information, NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt said that while the association strongly supports clear and concise opt-in forms, it is "not aware of current forms being problematic and believe consumers make informed decisions."

The CFPB's CUAC has 15 members, all of them from credit unions with $10 billion or less in assets. Newly appointed members will serve two-year terms. The CUAC was formed under the Dodd-Frank Act to provide direct feedback to CFPB on its policy development, research, rulemaking and engagement functions. Several NAFCU members currently serve on CFPB's CUAC, including two member representatives who were appointed in July.