The Consumer Financial Protection Bureau launched an investigation on checking account overdraft fees on Feb. 22.
According to a press release from the CFPB, the investigation planned to show insight into overdraft fee practices. The CFPB sent a data request to a number of banks.
The CFPB will focus on transaction reordering, missing or confusing information, misleading marketing materials, and the disproportionate impact on low-income and young consumers.
A 2010 Federal Board Reserve regulation prohibits banks from charging overdraft fees unless a customer signs up for a service, but it does not apply to checks or reoccurring withdrawals, says the Washington Post.
The CFPB also stated that they will seek feedback from the public on a penalty fee box. The box will highlight the total amount of overdraft fees on a customer’s checking account statement and show consumers the risks of overdraft programs.
