Consumer Groups to Defend Bank Overdraft Cap as CFPB Retreats

A pair of consumer groups won their bid to defend the Consumer Financial Protection Bureau’s $5 cap on bank and credit union overdraft fees after the agency indicated it would no longer do so.

MyPath and the Mississippi Center for Justice—financial counseling and economic justice organizations based in California and Mississippi, respectively—are needed to defend the rule given that the CFPB indicated in a court filing it intends to abandon it, Judge Carlton W. Reeves of the US District Court for the Southern District of Mississippi said in a Tuesday ruling.

“The adequacy of the CFPB’s representation is therefore legitimately ...