Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Save to My Library
Look up keyword or section
Like this
2Activity
P. 1
Consumer Financial Protection Bureau white paper on overdraft practices

Consumer Financial Protection Bureau white paper on overdraft practices

Ratings: (0)|Views: 706|Likes:
Published by LakeCoNews
The Consumer Financial Protection Bureau on Tuesday, June 11, 2013, released a report on bank and credit union overdraft practices that raises concerns about whether the overdraft costs on consumer checking accounts can be anticipated and avoided.
The Consumer Financial Protection Bureau on Tuesday, June 11, 2013, released a report on bank and credit union overdraft practices that raises concerns about whether the overdraft costs on consumer checking accounts can be anticipated and avoided.

More info:

Published by: LakeCoNews on Jun 12, 2013
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

11/28/2013

pdf

text

original

 
 
JUNE 2013
A white paper of initial data findings
CFPB Study of Overdraft Programs
 
2 CONSUMER FINANCIAL PROTECTION BUREAU STUDY OF OVERDRAFT PROGRAMS
Table of Contents
Executive Summary ................................................................................................... 4
 
1.
 
Introduction .......................................................................................................... 8
 
2.
 
Market and Regulatory Context of Overdraft Programs ................................. 10
 
3.
 
Consumer Overdraft Incidence, Fees, and Related AccountClosure................................................................................................................ 20
 
3.1
 
Overdraft and NSF Incidence ................................................................. 21
 
3.2
 
Overdraft and NSF Fees ......................................................................... 22
 
3.3
 
 Account Closure ..................................................................................... 24
 
3.4
 
Paid vs. Returned Overdraft Items ........................................................ 26
 
4.
 
Overdraft Use Following the 2010 Opt-In Requirement Under Regulation E ....................................................................................................... 27
 
4.1
 
Overview of Regulatory Changes ........................................................... 28
 
4.2
 
 Variations in Implementation Approaches ........................................... 28
 
4.3
 
Opt-In Rates ........................................................................................... 29
 
4.4
 
 Variations in Opt-In Rates by Bank ........................................................ 31
 
4.5
 
The Impacts of Opting In and Not Opting In ........................................ 33
 
4.6
 
 Variation in the Changes in NSF/OD Incidence ................................... 39
 
5.
 
Overdraft Policies and Practices across Institutions ..................................... 41
 
 
3 CONSUMER FINANCIAL PROTECTION BUREAU STUDY OF OVERDRAFT PROGRAMS
5.1
 
Calculating Available Funds................................................................... 42
 
5.2
 
Transaction Processing and Posting Orders .......................................... 44
 
5.3
 
Overdraft Coverage Limits and Making Pay/Return Decisions ............ 48
 
5.4
 
Charge/No-Charge Decisions, Waivers, and Refunds........................... 52
 
5.5
 
Linked Account Overdraft Protection, Alerts, and Other Programs toLimit Overdrafts ..................................................................................... 54
 
5.6
 
 Accountholder Behavioral Characteristics and Screening Policies ....... 58
 
6.
 
Conclusion, Open Questions, and Further Research Steps .......................... 60
 
Glossary .................................................................................................................... 64
 
Notes.......................................................................................................................... 69
 

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->