WASHINGTON—The CFPB’s recent circular on overdraft and its accompanying press release may give a false impression that credit unions are not complying with the Electronic Fund Transfer Act and Regulation E, America’s Credit Unions said.
ACU Regulatory Advocacy Senior Counsel James Akin wrote to CFPB Director Rohit Chopra sharing those concerns.
The CFPB’s circular was issued earlier this week, highlighting so-called “phantom” opt-ins to overdraft protection programs. Akin notes that the information is well-established law, and credit unions continue to comply with these requirements.
“Although the press release and circular focus on the actions of banks, we are concerned that credit union members may be misled by the Bureau’s statements and unnecessarily lose confidence in their credit union,” Akin wrote to Chopra. “The credit union industry has a long-standing commitment to consumer protection and transparency. Many of our member institutions have voluntarily implemented consumer-friendly overdraft policies that go beyond regulatory requirements.”
Blanket statements such as the ones issued this week “fail to acknowledge proactive efforts such as these and the positive relationships credit unions have fostered with their members,” Akin said.