Overdrafts

National Credit Union Administration Chair Todd Harper Tuesday revealed plans to mandate separate reporting of overdraft and nonsufficient funds fees for credit unions with over $1 billion in assets, which he said would enhance equity and transparency in fee structures.

Charging a nonsufficient funds fee on a debit, ATM or peer-to-peer payment that gets declined immediately would be considered "abusive" under a proposed rule from the Consumer Financial Protection Bureau.

Small banks appeared to notch a big win with the exemption from the Consumer Financial Protection Bureau's overdraft proposal. But some experts are questioning the CFPB's rationale, given research that shows small banks' overreliance on overdraft revenue.

The Consumer Financial Protection Bureau plans to release a proposal that would set maximum overdraft fees at $14 for the largest banks in an overhaul of how overdraft fees are calculated and charged.

Frequent overdrafters — households that pay more than 10 overdraft fees a year — use the service as a form of credit, the Consumer Financial Protection Bureau said in a report.

The bank in Richmond, Virginia, failed to properly disclose its overdraft practices to roughly 8,500 consumers who enrolled by phone or in branches from 2017 to 2020, according to the Consumer Financial Protection Bureau. The company admitted no wrongdoing.

Brown has been with the online lender almost since it was spun off from General Motors, helping it broaden its product offerings and take a stand on overdraft fees. Now he must help Ally confront a looming recession.

The $7.1 billion-asset bank has established a partnership with the nonprofit HoneyBee that harks to its early days serving underbanked Korean business owners in Los Angeles in the early 1980s.

Rep. Carolyn Maloney has emerged as a champion of overdraft reform in the House but faces a challenging primary against fellow Democratic Rep. Jerry Nadler next Tuesday.

The Pittsburgh-based company is no longer assessing NSF fees to customers whose accounts don't have enough money to cover certain transactions. It is the latest bank to revise portions of its overdraft policy amid a raging debate about the fairness of such charges.