Pub. 5 2015-2016 Issue 5

10 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S FEATURE ARTICLE NATHAN MCDONALD COMPLIANCE ALLIANCE During the same period, the roughly 600 banks required to report overdraft fees reported approximately $2.5 billion in overdraft fee income. Overdraft Rules Confirmed for 2016 L ast month, the CFPB confirmed its plans to engage in rulemaking for overdraft in its 2016 rulemaking agenda. It has been a long road getting to this point, since 2012 when Director Cordray described overdraft practices as “harmful” in a speech given that year. As part of its rulemaking preparations, the agency is currently conducting additional research and consumer testing of opt-in initia- tives. Recently, it sought permission from the Office of Management and Budget to conduct a web-based survey of 8,000 consumers as a part of its study of ATM/debit card overdraft disclosure forms, under the authority provided by the Electronic Fund Transfer Act. As claimed in its filing, the survey will be used to “explore” consumer comprehension and decision-making in response to revised overdraft forms. It also aims to “explore” overdraft product usage, consumer behavioral traits, and characteristics that may interact with a consumer’s experiences with overdraft programs and disclosures. In addition to the forthcoming rules, the CFPB has already exercised its enforcement powers to curb overdraft practices it feels are harmful to consumers, levying a fine of $7.5 million against Regions Bank for allegedly charging overdraft fees to consumers who had not opted-in for coverage. In addition to the fine, the consent order required the bank to refund overdraft fees to consumers in an amount ex- ceeding $49million. On the same day, the CFPB also issued a consumer advisory regarding overdraft services, notifying consumers of how to avoid overdraft fees, and urging consumers to shop around.