CFPB’s Proposed Overdraft Rule Would Protect Consumers
WASHINGTON, D.C. – The U.S. Consumer Financial Protection Bureau (CFPB) today released a proposal to close the bank overdraft loophole that costs consumers billions of dollars each year. Candace Milner, racial equity policy associate for Public Citizen, released the following statement:
“The new overdraft rule will ensure that banks are no longer using predatory overdraft fees to profit from consumers. Most overdraft fees are taken from low-income households when they can least afford it. Commonsense regulations on these fees would protect consumers from surprise charges and fees that often exceed the amount borrowed. Enormous overdraft fees that burden low-income consumers should no longer line the pockets of bank CEOs.”