CFPB Warns Banks Against Use of Phantom Opt-In Agreements

Cozen O'Connor
Contact
LinkedIn
Facebook
X
Send
Embed

Cozen O'Connor

  • The CFPB issued guidance, titled Improper Overdraft Opt-In Practices, addressing whether a financial institution violates the law if it levies overdraft fees for ATM and one-time debit card transactions based on phantom opt-ins—through which banks claim they have customers’ consent to charge such fees without proof consent was given.
  • In the guidance, the CFPB explains that a bank or credit union can be in violation of the Electronic Fund Transfer Act (EFTA) and its Regulation E if there is no proof that it obtained affirmative consent to enrollment in covered overdraft services.
  • The CFPB also provides examples of records that banks could maintain that would demonstrate consumer consent to enrollment.
Send Print Report

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

© Cozen O'Connor

Written by:

Cozen O'Connor
Cozen O'Connor
Contact
more
less

PUBLISH YOUR CONTENT ON JD SUPRA NOW

  • Increased visibility
  • Actionable analytics
  • Ongoing guidance

Cozen O'Connor on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign Up Log in
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide