WASHINGTON—As the CFPB continues to issue a spate of rules and take numerous actions, the Bureau, in fact, recently rolled back one proposal, America’s Credit Unions reported.
“The CFPB actually withdrew a rule—their proposed rulemaking relative to non-sufficient fund fees,” said ACU Chief Advocacy Officer Carrie Hunt. “This is an incredibly important issue to our members.”
The proposed rule would prohibit non-sufficient funds (NSF) fees on transactions that financial institutions decline in real time, and its proposed rule would consider fees for transactions declined in real time to be unlawful under the Consumer Financial Protection Act.
Hunt pointed out there is a difference between “junk fees” and fees that are part of a credit union’s daily business.
“However the CFPB looking at NSF fees is ultimately problematic, if it were to go down the road of actually impacting credit union operations,” she said.
But Hunt told CUToday.info the CFPB pulling this rule should not suggest other proposals may be on the chopping block, as well.
“I think they wanted to make sure they preserve the right to address NSF charges in either a future congresses or future administration,” Hunt said. “I think they want to protect it against any potential action under the Congressional Review Act.”