CFPB: Overdraft Lending – Very Large Financial Institutions

On January 17, 2024, the Consumer Financial Protection Bureau (CFPB or Bureau) released a notice of proposed rulemaking to amend Regulations E and Z to update regulatory exceptions for overdraft credit provided by very large financial institutions, thereby subjecting extensions of overdraft credit to the consumer protection regulations CFPB required of similar extensions of credit unless the overdraft fee is a small amount that only recovers applicable costs and losses.

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