NAFCU updates CUs on overdraft rule review
Following the CFPB's announcement that the overdraft rule will be reviewed first under the Regulatory Flexibility Act (RFA), NAFCU's Carrie Hunt sent an email to member credit unions further explaining what it means for the industry.
Hunt, NAFCU's executive vice president of government affairs and general counsel, also highlighted the importance of members providing feedback on the rule to ensure the CFPB understands its impact on the industry. NAFCU will send a Regulatory Alert once the request for information (RFI) is published in the Federal Register today.
On Monday, the CFPB issued two RFIs: one on the overdraft rule and another on its plan for periodic review of rules under the RFA.
"As member-owned financial institutions, credit unions have responsible overdraft programs in place to help their members meet their financial needs and day-to-day expenses," Hunt said in response to the RFI. "Credit unions have long been heralded as a consumer-friendly lending option, and their overdraft products are often coupled with free financial education and counseling services to fully inform their members about the benefits and use of overdraft products.
"We appreciate the CFPB reviewing the impact of its regulations on credit unions and other small entities, and we will continue to work with the Bureau to protect consumers while examining ways to cut red tape," Hunt added.
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