CFPB Proposes Two Rulemakings On Overdraft And NSF Fees

In the last several weeks, the Consumer Financial Protection Bureau (CFPB) issued two new rulemakings aimed at further restricting the imposition by financial institutions of fees on consumer accounts:

• On January 17, the CFPB issued a notice of proposed rulemaking (NPRM) to update certain exceptions in Regulations E and Z regarding the extension of overdraft credit by "very large financial institutions" (Overdraft Lending Proposed Rule). Specifically, the NPRM would bring "above breakeven overdraft credits" within the scope of consumer credit under the Truth-in-Lending Act and Regulation Z and require covered financial institutions to apply certain longstanding consumer protections, including interest rate and fee disclosures, to overdraft credits.