CFPB Unveils Protoype Overdraft Disclosures, Says No Rules Yet

The Consumer Financial Protection Bureau today unveiled several new prototype model disclosures aimed at helping consumers better understand the pros and cons of optional overdraft coverage for checking accounts.

CFPB officials, who said a multi-year effort to craft overdraft regulations is still not ready, also released a study on overdraft costs. It said consumers who frequently overdraw their checking accounts typically pay almost $450 more in annual fees by opting into coverage for debit card and ATM overdrafts.

A potential rule on overdraft practices has been in the slow lane for quite some time. The CFPB first launched a “broad ...