The Consumer Financial Protection Bureau issued a circular affirming that banks might violate federal law if they unilaterally reopen a deposit account to process transactions after a consumer has already closed it.
CFPB issues guidance on reopening closed deposit accounts
May 12, 2023 / By ICBA
The Consumer Financial Protection Bureau issued a circular affirming that banks might violate federal law if they unilaterally reopen a deposit account to process transactions after a consumer has already closed it.
The Consumer Financial Protection Bureau issued a circular affirming that banks might violate federal law if they unilaterally reopen a deposit account to process transactions after a consumer has already closed it.
Details: The CFPB said consumers have complained about banks reopening closed accounts to assess overdraft, nonsufficient-funds, and maintenance fees, citing a previous order against USAA Federal Savings Bank. Such practices may violate the Consumer Financial Protection Act’s prohibition on unfair acts or practices, the bureau said.
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