The Consumer Financial Protection Bureau issued a circular that says a financial institution violates the Electronic Fund Transfer Act and Regulation E if “there is no proof that it has obtained consumers’ affirmative consent before levying overdraft fees for ATM and one-time debit card transactions.”
CFPB: Banks need to keep proof of consent for certain overdraft fees
September 18, 2024 / By ICBA
The Consumer Financial Protection Bureau issued a circular that says a financial institution violates the Electronic Fund Transfer Act and Regulation E if “there is no proof that it has obtained consumers’ affirmative consent before levying overdraft fees for ATM and one-time debit card transactions.”
The Consumer Financial Protection Bureau issued a circular that says a financial institution violates the Electronic Fund Transfer Act and Regulation E if “there is no proof that it has obtained consumers’ affirmative consent before levying overdraft fees for ATM and one-time debit card transactions.”
Details: Reg E dictates that banks need to keep proof of customer consent to the fees, but the guidance suggests that such records would need to be retained indefinitely.
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