CFPB Unveils Prototypes of "Know Before You Owe" Overdraft Disclosure Designed to Make Cos

Consumer Financial Protection Bureau press release August 4, 2017 ------- The Consumer Financial Protection Bureau (CFPB) unveiled new Know Before You Owe overdraft disclosure prototypes designed to improve the model form that banks and credit unions already provide to consumers weighing overdraft coverage. The Bureau is currently testing four prototypes that each have a simple, one-page design aimed at making the costs and risks of opting in to overdraft coverage easier to understand and evaluate. People who frequently attempt to overdraw their checking accounts typically pay almost $450 more in fees if they opted in to debit card and ATM overdraft coverage, according to a new CFPB study published today. The study found that most of these frequent overdrafters are financially vulnerable, with lower daily balances and lower credit scores than people who do not overdraft as often. To get more in depth information click on the picture below to read the release.