CFPB proposes to amend regulations for large institutions’ overdraft credit

The Consumer Financial Protection Bureau, or CFPB, announced that it proposes to amend Regulations E and Z to update regulatory exceptions for overdraft credit provided by very large financial institutions, thereby subjecting that credit to consumer lending regulations, unless the overdraft fee is a small amount that only recovers applicable costs and losses. “The proposal would allow consumers to better comparison shop across credit products and provide substantive protections that apply to other consumer credit,” the CFPB stated. Publicly traded large U.S. banks include Bank of America (BAC), Citi (C), Goldman Sachs (GS), JPMorgan (JPM), Morgan Stanley (MS), U.S. Bancorp (USB) and Wells Fargo (WFC). Card issuers and card network companies include Visa (V), MasterCard (MA), Synchrony (SYF), Capital One (COF), American Express (AXP) and Bread Financial (BFH).