The U.S. Consumer Financial Protection Bureau (CFPB) will issue new guidance aimed at curbing banks' reliance on fees from overdraft and non-sufficient funds (NSF) facilities that lenders impose on consumers, its top official said yesterday, Reuters reported. Rohit Chopra added that he has also tasked the regulator's bank examiners with prioritizing lenders that over-rely on such fees, of which banks netted $69 billion in the third quarter. The agency also hopes that impending data-sharing rule changes aimed at boosting competition among lenders will make it easier for consumers to dump banks that overcharge them. "The (consumer watchdog) is considering a range of regulatory interventions to help restore meaningful competition in this part of the checking market, rather than allowing large institutions to rely on overdraft and non-sufficient revenue fees forever," Chopra said. Chopra pointed out that a "blockbuster" third quarter far outstripped the $15 billion netted in 2019. Also on Wednesday, Capital One Financial said it would eliminate all overdraft and NSF fees for consumers, ending a practice that drew the ire of U.S. lawmakers at a Senate hearing earlier this year.
