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.
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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up-to-date overdraft solution, we are responding to recent government rule changes – which left many overdraft programs outdated and obsolete – by making changes to our own, building an all-new JMFA OVERDRAFT PRIVILEGE® program that helps financial institutions stay compliant and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.
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