(Source: By Frank Keating, ABA President and CEO) - “The American Bankers Association appreciates the Bureau of Consumer Financial Protection’s interest in initiating a study of customer use of overdraft protection services, before prejudging any regulatory next steps. We support a study that is data-driven, analytical and stands up to peer review. However, any CFPB study should include a survey of the entire banking industry since CFPB rules will apply to all banks.
ABA member banks that offer this popular service have a track record of introducing a range of competitive features that customers value. Richard Cordray’s comments illustrate that the Bureau recognizes this competitive diversity that drives a wealth of consumer choices among banking products.
We are not concerned about a study based on fact as we believe that overdraft protection is a service that customers freely elect to have, they know the fee in advance and they can opt-out of overdraft protection at anytime.”
The American Bankers Association represents banks of all sizes and charters and is the voice for the nation’s $13 trillion banking industry and its two million employees. Learn more at aba.com.
