💳CFPB Withdraws Rule on NSF Fees
Fees for Instantaneously Declined Transactions; Withdrawal of Proposed Rule
Summary
The Consumer Financial Protection Bureau (CFPB) is withdrawing its proposed rule to prohibit banks and other financial institutions from charging certain nonsufficient funds (NSF) fees, such as those for declined debit card purchases, Automated Teller Machine (ATM) withdrawals, and some person-to-person payments. The CFPB will determine whether a more comprehensive approach to also prohibit NSF fees charged for additional types of transactions will better protect consumers from potentially unlawful fees.
Agencies
- Consumer Financial Protection Bureau
Business Impact
$$ - Med
The withdrawal of the proposed rule impacts financial institutions as it allows the continued charging of NSF fees for instantaneously declined transactions. This indicates a lack of immediate regulatory changes, affecting their fee structures and compliance strategies. The CFPB's review could lead to future regulations that mandate broader prohibitions against such fees, influencing consumer trust and financial practices.