amicus brief<\/a>\u00a0supporting America\u2019s Credit Unions\u2019 recent federal lawsuit challenging the Consumer Financial Protection Bureau\u2019s final rule that sets a fee cap on overdraft protection programs.\u00a0<\/p>\nThe amicus brief highlights the significance of credit unions\u2019 unique member-owner relationship, which is fundamental to the mission of serving their communities. The CFPB\u2019s final rule focuses on calculating costs and assessing fees, failing to account for credit unions\u2019 unique capital and operational realities. The final rule was developed with data from five financial institutions that do not represent the diversity of the financial services industry.\u00a0\u00a0<\/p>\n
The CFPB\u2019s finalized rule disregards decades of precedent set by the Federal Reserve Board. Consumers who have previously opted into overdraft programs may not qualify under the CFPB\u2019s new final overdraft rule. Ultimately, the rule threatens to reduce access to financial services in rural areas and underserved communities.\u00a0<\/p>\n
Paul Mercer, president of the Ohio Credit Union League, which spearheaded the initial legal response to the CFPB\u2019s rule in conjunction with America\u2019s Credit Unions, emphasized that member choice and transparency remain paramount.<\/p>\n
\u201cConsumers and credit unions of all sizes would unintentionally bear the negative brunt of the CFPB\u2019s misdirected rule,\u201d he said. \u201cThe fee cap ignores market realities\u2014overdraft programs are a costly, and mostly break even, service for credit unions. But they are widely used, offering members a lifeline from their trusted financial cooperative when they need it most. We must preserve credit unions\u2019 ability to remain autonomous in serving their members.\u201d<\/p>\n
The current regulatory framework ensures that existing products and services are reasonable and fully disclosed. Credit unions provide members with clear options to opt out of overdraft protection, obligating members to utilize an overdraft protection service goes against credit unions\u2019 standards.\u00a0\u00a0<\/p>\n
[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n ","protected":false},"excerpt":{"rendered":"
[et_pb_section fb_built=”1″ _builder_version=”4.9.4″ _module_preset=”default” custom_padding=”0px|||||”][et_pb_row _builder_version=”4.9.4″ _module_preset=”default” custom_padding=”0px|||||”][et_pb_column type=”4_4″ _builder_version=”4.9.4″ _module_preset=”default”][et_pb_text _builder_version=”4.9.4″ _module_preset=”default”] The League joined 17 credit union leagues and associations in filing an\u00a0amicus brief\u00a0supporting America\u2019s Credit Unions\u2019 recent federal lawsuit challenging the Consumer Financial Protection Bureau\u2019s final rule that sets a fee cap on overdraft protection programs.\u00a0 The amicus brief highlights the significance […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=\/wp\/v2\/posts\/5517"}],"collection":[{"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5517"}],"version-history":[{"count":0,"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=\/wp\/v2\/posts\/5517\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5517"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5517"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ncultheaffiliate.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5517"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}