CFPB Launches Checking Account Overdraft Fee Probe

Law360, New York (February 22, 2012, 2:10 PM EST) -- The nation's consumer financial services watchdog on Wednesday launched a wide-ranging probe into how banks' checking account overdraft programs are affecting consumers, opening up a potential battle over one of the financial industry’s leading profit engines.

Along with reviewing whether banks are providing misleading marketing materials related to their overdraft protection plans and overcharging consumers, the Consumer Financial Protection Bureau also wants public comment on proposed disclosures on account holders' statements highlighting the amount overdrawn. The so-called penalty fee box would also show the total overdraft...
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