Michael Moebs
LAKE FOREST, Ill.—It’s time for credit unions and banks to speak up if they want to avoid potentially huge overdraft changes led by the CFPB.
That’s the word from one analyst who says banks and credit unions must flood the CFPB with comments on the agency’s proposed overdraft rules on prepaid. Not doing so will open the door wider for the bureau to move the same overdraft rules to checking—and soon.
Numerous sources have told CUToday.info they believe the CFPB’s new rules on prepaid are the agency’s first move in an effort to do away with overdrafts across all payment channels, not just prepaid.
“In March of 2015 (comments are due by March 23), if the CFPB does not see a great deal of adverse comments on their proposal, they could issue another proposed regulation immediately, saying they will take the same steps with checking, treating overdrafts there as credit,” said Michael Moebs, economist and CEO at Moebs $ervices.”
Moebs says the CFPB’s next overdraft rulemaking move will cover all payment channels.
“If they get away with this on prepaid, that is what they will do,” said Moebs, who feels the CFPB could issue its proposal to cover all other channels in March, with comments due in June.
“They could move quickly because the CFPB wants all overdrafts to follow the same guidelines,” said Moebs.
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