← Cooperative Credit Union Association
CFPBRulemakingCFPB-2024-0003

Fees for Instantaneously Declined Transactions

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Cooperative Credit Union Association filings
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Cooperative Credit Union Association filed 1 comment on this docket between Mar 25, 2024 and Mar 25, 2024. 25 other organizations filed here. The comment window closed 855d ago.

What Cooperative Credit Union Association filed (1)

Mar 25, 2024· Comment from Cooperative Credit Union Association· CFPB-2024-0003-0186

• We do not agree that such fees are "junk fees" consumers are unaware of or cannot protect themselves against.. Credit union members are well-informed concerning the possibility of such fees because credit unions disclose them in pursuant to the Truth in Savings Act and the National Credit Union Administration's Truth in Savings Regulation, 12 C.F.R. pt. 707, as well as pursuant to the Electronic Funds Transfer Act and the Bureau's Regulation E. 12 C.F.R. pt. 1005 • While many credit unions do not charge NSF fees for instantly declined transactions, such as point-of-sale debit card declines, the Associations does not agree with the Bureau's proposal to ban such fees as an abusive practice pursuant to the agency's UDAAP authority. If finalized, this rule would be an unreasonable interpretation of the plain language of the UDAAP provisions of Section 1031 of the Consumer Financial Protection Act. • This regulation, if finalized, will have an impact on small credit unions and therefore should have been subject to the Small Business Regulatory Enforcement Fairness Act (SBREFA) review prior to being proposed.

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Abstract

SUMMARY: The Consumer Financial Protection Bureau (CFPB) is proposing to prohibit covered financial institutions from charging fees, such as nonsufficient funds fees, when consumers initiate payment transactions that are instantaneously declined. Charging such fees would constitute an abusive practice under the Consumer Financial Protection Act’s prohibition on unfair, deceptive, or abusive acts or practices. ADDITIONAL INFORMATION: For more information about commenting on CFPB’s Notices, please visit us at: https://www.consumerfinance.gov/rules-policy/notice-opportunities-comment/commenting-on-notices/

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Co-filers (25)

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