800-809-2307
Four Letters. Infinite Potential.

JMFA Compliance Team Meets with Regulators Regarding Overdraft Solutions

Meeting opens dialogue as regulators contemplate new regulations

By Cheryl Lawson, EVP-Compliance Review

When the Consumer Financial Protection Bureau (CFPB) solicited input in 2012 on the impact of overdraft protection programs on consumers, JMFA partnered with Washington D.C.-based Morrison & Foerster, LLP, to provide information gathered from community bank and credit union clients across the nation. In February, together with our Compliance Counsel, Oliver Ireland, Partner at Morrison Foerster, we met with representatives of the CFPB to discuss how fully-transparent, disclosed overdraft programs provide a valuable resource for consumers when they experience financial difficulties. 

This meeting – which was a follow-up to the information JMFA provided previously to the CFPB in response to its request for comment on overdraft programs – enabled us to explain how JMFA OVERDRAFT PRIVILEGE® works in its entirety. The CFPB members appreciated the opportunity to learn more about the experiences smaller financial institutions – those not part of their own survey – have with a transparent, fully-disclosed overdraft solution. They were receptive to our consumer education materials, as well as the strategies the program provides to help banks and credit unions avoid risks. We are pleased to report that we received no objection or criticism regarding any part of the program. 

As we continue our efforts to provide our clients with the most up-to-date overdraft solution, we are responding to recent government rule changes – which left many overdraft programs outdated and obsolete – by making changes to our own, building an all-new JMFA OVERDRAFT PRIVILEGE® program that helps financial institutions stay compliant and recapture lost income. 

As the CFPB and other regulators continue to develop overdraft strategies and guidance for small- and- medium-sized financial institutions, JMFA will continue to communicate with them regarding fully compliant, non-discriminatory overdraft solutions. Their leadership has encouraged our on-going participation since we agree that the best programs are those that provide consistent, non-discriminatory and compliant financial tools for consumers. 

We have been the premier provider of fully disclosed overdraft programs for more than 25 years, and we remain committed to providing the best solution for banks and credit unions, and the consumers they serve. 

To learn more about our on-going efforts and where we see the industry going, contact the representative for your region.


As seen in:
Credit Union Association of New Mexico's Website- March 19, 2014
Cornerstone Credit Union League's Leaguer- March 20, 2014
Maryland and DC Credit Union Association's The Daily Scoop- March 20, 2014

 

2020 40 years Academy account holder account holder retention account holder strategies account holder strategies; growth strategies; account holders Advice Agreement Analytics announcement Assistance ATMs Attendees attracting talent Automation B2B Balance Bank Bank of Pacific Banking banking services banks batching Benefit best practices board governance board member board of directors bottom line branch equipment branch profitability branding Bryan Hanks budget business business culture business environment business practices business processes business strategies career advice Case Study CEO onboarding CFPB change Charles Shanley Cher Cheryl Lawson Choose Chris Karstens Classroom clients Cloud Cohron commitment Communication communications Competitive Complaint Compliance compliance examinations compliance risks compliant Consistency Consistent consulting Consumer Consumer FInancial Protection Bureau consumer protection Consumers Contingency Contract Contract Analysis Contract Negotiation contract negotiations Contract Optimizer Contract Renegotiations contract review contract staffing Contracts Convenience core processor contracts Cornerstone Credit Union League corporate culture corporate governance CPE credits credit card contracts credit cards Credit Union credit unions Crissandra Fry CSS culture customer service cyber security Damian Darin Byrd Data Deal debit card contracts Debt Decisions Dick Miller digital directors Disclosed Discussion Dynamic economy Education efficiency studies election Emergency employee employee retention employees EMV migration evaluation Evolve executive search Expectations Expense expense management expense reduction expense studies expenses Experience Expert Experts Facilitators FastTrack Federal Reserve Board Feedback fees Financial Financial Institution financial services financial stability FinTech Floyd's Forum Free Analysis full disclosure Fully Generating Income generating leads generation governance government Halloween Hammond hiring HKW Holiday Holidays HR HR Consulting HR policies Hubur human capital human resources Implementation improved efficiencies improved results Inc. income income enhancement Innovate Innovative interview strategies interview tips IT contracts Jai James Jan Southern Jennifer Peoples Jim Griffis JMFA JMFA Academy JMFA clients JMFA News JMFA Next Generation Overdraft Privilege job search John M. Floyd John M. Floyd & Associates Keith Hughey Kelly Flynn Kennedy Kim Kreps Lawyer leaders leadership Learn Learning lending program Lesson Limits Linda Meyer Literacy