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CFPB pitches new disclosure form for overdraft fees

Joe Mont | August 9, 2017

Following a new study that claims frequent overdrafters typically pay nearly $450 each year in checking account fees, the Consumer Financial Protection Bureau this week unveiled new “Know Before You Owe” overdraft disclosure prototypes.

The model disclosures are “designed to improve the model form that banks and credit unions already provide to consumers weighing overdraft coverage” The Bureau is currently testing four prototypes that “each have a simple, one-page design aimed at making the costs and risks of opting in to overdraft coverage easier to understand and evaluate” it says.

According to a newly released study on overdrawn checking accounts, most are “financially vulnerable, with lower daily balances and lower credit... To get the full story, subscribe now.