After seven years of industry uncertainty about what actions Consumer Financial Protection Bureau (CFPB) regulators would take on a multitude of financial products and services, Director Richard Cordray’s announcement that he is stepping down as head of the bureau has increased speculation about the agency’s future. While his announcement was not unexpected, his departure raises more questions about what comes next regarding rulemaking and enforcement for banks and credit unions.

With talk on Capitol Hill of a possible shift toward reducing the compliance burden for financial institutions, many in the industry are wondering…

  • How quickly will the Trump administration name a new director?
  • Will the bureau stay in a holding pattern until new leadership is named?
  • Will the regulatory priorities change?
  • Will enforcements made during Cordray’s tenure be reversed?
  • Will the bureau be restructured or dissolved entirely?

While answers to these and many other questions are up in the air at this time, one thing is certain: Change in an agency the size of the CFPB doesn’t happen quickly. Since the bureau first announced the possibility of implementing new overdraft program rules in 2010, it has spent years gathering research and studying data. And while it has taken disciplinary action on financial institutions that implemented unfair and deceptive overdraft practices, no new ruling has been announced. What’s more, at no time during the on-going review of overdraft services have regulators implied that financial institutions should be precluded from offering overdraft coverage for their account holders.

Whatever direction the CFPB takes going forward, you can avoid compliance uncertainty while maintaining strong account holder relationships by implementing a fully disclosed overdraft program or initiating a review of an existing overdraft strategy. Don’t sit on the sidelines. Learn how JMFA can help you utilize the most accurate regulatory guidance and best practices to addresses consumers’ financial needs and improve your institution’s overall performance.