JACKSON, Miss.—Credit unions are taking action to block the CFPB’s new overdraft rule, America’s Credit Unions reported.
ACU and other financial services organizations, including the American Bankers Association, have filed a preliminary injunction asking the court to halt the implementation date and prevent credit unions and other financial institutions from spending undue time and resources preparing while a legal challenge to the final rule is still underway, ACU said.
The rule’s implementation date is Oct.1, 2025.
As CUToday.info reported, America’s Credit Unions filed a lawsuit with other financial trades last week, saying the final rule exceeds the Bureau’s statutory authority and threatens to harm consumers.
The CFPB finalized its rule last week, capping overdraft fees at $5 for financial institutions above $10 billion in assets.
America’s Credit Unions noted that it has continually raised concerns about the proposed rule with the Bureau and Congress.