NCLC was among 144 consumer, civil rights, legal services and community groups that filed comments with the Consumer Financial Protection Bureau (CFPB) in strong support of the CFPB’s proposed rule governing Overdraft Lending: Very Large Financial Institutions. By closing an antiquated loophole designed in the check era, the proposed rule will promote more honest, fair, and affordable forms of overdraft coverage and prevent big banks from charging high, back-end junk fees that push people out of the banking system.
The proposed rule would stop big banks from using junk overdraft fees to exploit families living paycheck to paycheck.