View Rule

The Bureau is engaged in policy analysis and further research initiatives in preparation for a potential rulemaking regarding overdraft programs on checking accounts. In June 2013, the CFPB issued a white paper summarizing the CFPB's initial findings from its analysis of overdraft practices.  The white paper, which was based on supervisory data from several large banks, highlighted a number of possible consumer protection concerns, including how consumers opt in to overdraft coverage for ATM and one-time debit card transactions, overdraft coverage limits, transaction posting order practices, overdraft and insufficient funds fee structure, and involuntary account closures.  In July 2014, the CFPB released a report, based on data from the same sources, providing additional information about the outcomes of consumers who do and do not opt in to overdraft coverage for ATM and one-time debit card transactions.  The July 2014 report also explored the transactions that overdraw consumer accounts. In August 2017, the CFPB released another report, based on data from the same sources, combined with de-identified credit report information, examining differences between consumers who overdraft frequently and those who overdraft less frequently or not at all. The Bureau also released four "Know Before You Owe” Overdraft Opt-In model form prototypes and asked for feedback on those designs.The CFPB is continuing to engage in additional research and consumer testing initiatives relating to the opt-in process.