Mon, Aug 7, 2017
The CFPB today unveiled new Know Before You Owe overdraft disclosure prototypes. According to the CFPB, these new forms are a “test” to see how consumers react to info that helps them “evaluate costs and risks” of using ODP. They are designed as one-pagers to “more clearly disclose fees and understand how ODP works in an account.”
According to CFPB, the publication of these model guidelines does not mean CFPB has abandoned rulemaking on ODP. The next step might be to ask the financial services industry for comment on the forms, and on what an ODP rule might look like.
You can view the CFPB's press release here. During the Association's last CEO Roundtable with the CFPB, concerns that the research ignored credit unions were raised, but to date credit union industry data has not been included in the CFPB's research.