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Send Comments to CFPB About Overdraft Protection Programs

Missouri credit unions have an opportunity to weigh in on overdraft protection programs with the Consumer Financial Protection Bureau (CFPB).  The Bureau is asking for information regarding overdraft programs and their costs, benefits and risks to consumers.  In addition to financial institutions, consumers and third party processors are also being asked to share their comments. The CFPB states that it plans to use the information to evaluate any potential consumer protection issues raised by overdraft programs

Titled "Impacts of Overdraft Programs on Consumers," the request is aimed at gaining information in four specific areas:   

  • Transaction re-ordering 
  • Omission of information specific to cost of protection
  • Confusing or misleading marketing 
  • Impact on minority, low-income and young consumers

The CFPB wants public  input on a sample "penalty box"  - a suggested disclosure on a consumers’ checking account statement that highlights the method of calculation and possible amount of fees, and compares fees to total amounts of overdrafts. 

The CFPB requested overdraft protection program information in the Federal Register on February 28. Click here for the complete request in the Federal Register.  The Missouri Credit Union Association (MCUA) is drafting a comment letter, but individual credit unions are encouraged to also write in and share their perspectives with the CFPB.  Comments are due to the CFPB by  April 30.

To submit comments, identify your communication with Docket No. CFPB-2012-0007, and send by any of the following methods:

  • Follow the instructions for submitting comments.
  • Email:
  • Mail: Monica Jackson, Office of the Executive Secretary, Bureau of Consumer Financial Protection Bureau, 1500 Pennsylvania Ave. NW. (Attn: 1801 L Street NW.), Washington, DC 20220.

If you have any questions, please contact John Thomas, MCUA vice president of Compliance & Advocacy.