Overdraft
OVER by Katie Harrison
O
verdraft services are a standard banking product. Life happens, and thankfully, most banks offer an
overdraft product to come to the rescue when you are on vacation and forgot to do a savings transfer, or transpose numbers when balancing your checkbook. The end of 2021 came with a cautionary tale for financial institutions from regulators: Overhaul your overdraft services or potentially face enhanced scrutiny.
32
•
SPRING 2022
HISTORY This is not the first time the Consumer Financial Protection Bureau (CFPB) has conducted research related to overdraft programs. Shortly after its creation in 2011, the CFPB published a semiannual report in 2012 that highlighted the pitfalls and consumer woes related to account maintenance and overdraft programs. The report revealed general consumer challenges with financial services
