The Consumer Financial Protection Bureau, CFPB, unveiled changes to how banks structure overdraft protection plans, Chelsey Cox of CNBC reports. The agency said the new rule closes a loophole that exempted overdraft loans from the consumer protections required by the 1968 Truth in Lending Act. The new rule would only apply to banks with more than $10B in assets, for these banks typically account for more than 80% of the overdraft fees charged in a year. Agency officials expect the rule to be finalized in the coming year and go in effect in October 2025. Publicly traded companies in the space include Bank of America (BAC), Citigroup (C), JP Morgan (JPM), U.S. Bancorp (USB), Wells Fargo (WFC), Goldman Sachs (GS), and Morgan Stanley (MS).
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See today’s best-performing stocks on TipRanks >>
Read More on BAC:
- TipRanks’ All-Star Analyst – Who is the Best on BAC Stock?
- Boston Consulting Group: Banks Can Create $7T in Value
- Bank of America Reports Earnings: Did it Beat Estimate Forecasts?
- Bank of America: Managing headcount by hiring less, not major job cuts
- Bank of America sees NII down in 1H24 before stabilizing
