Small Banks Warn CFPB About Rushing Overdraft Fee Rule (1)

Community banks and credit unions warned the Consumer Financial Protection Bureau not to cut corners in developing rules to curb fees for overdraft and nonsufficient funds.

The CFPB is required by law to convene an interagency small business review panel before issuing its proposals because any final rules would impact financial institutions with $850 million or less in total assets, the American Bankers Association, the Independent Community Bankers of America, and America’s Credit Unions said in a Wednesday letter to the agency.

The 2010 Dodd-Frank Act requires the CFPB to conduct a small business review for any rulemaking that could ...