June 12 - The Independent Community Bankers of America has released the statement below following the announcement of a new report issued by the Consumer Financial Protection Bureau regarding overdraft services.
“The CFPB's report on overdraft payment services acknowledges consumer value of overdraft programs, which were created to meet the customer demand for these services. Because many consumers seek the convenience and protection that overdraft coverage offers, community banks offer a variety of services tailored to the specific needs of their customers. These services are an extension of community banks’ commitment to provide the highest level of customer service.
“As ICBA showed in its ICBA Overdraft Payment Services Study released in June 2012, community banks inform customers of alternatives to overdraft payment services, structure their services to minimize the potential for overdraft fees and strive to minimize overdraft fees for their customers.
“Regulatory policy and oversight should not impede a bank’s ability to offer a variety of overdraft payment services to meet their customers’ financial needs. Consumers must retain the ability to access overdraft services that best fit their unique financial needs and avoid being locked into an ill-fitting ‘one size fits all’ overdraft program. ICBA looks forward to continuing its ongoing communications with the CFPB on overdraft payment services and other issues affecting community banks and the communities they serve.”
For more information, visit www.icba.org.