Independent Banker - February 2023 - 25

PORTFOLIO
◎FOCUS COMPLIANCE
The impact of new
overdraft fee guidance
The CFPB recently issued new guidance on overdraft fees that was
unanticipated by community banks. Learn what this means for the
industry and how community banks can stay in compliance.
By Mary Thorson Wright
n October 2022, President Biden
announced a crackdown on so-called
junk fees, including new steps that
effectively ban banks from imposing
disclosed overdraft fees. Concurrently,
the Consumer Financial Protection
Bureau (CFPB) issued Circular 2022-06
guidance on " unanticipated overdraft
fee assessment practices, " which
complies with TILA, EFTA, Regulation
Z, Regulation E and the prohibition
against unfair, deceptive, and abusive
acts or practices (UDAAP) in Section
1036 of the Consumer Financial
Protection Act (CFPA).
Banks offer a variety of products or
services designed to allow overdrafts on
deposit accounts, including:
 Lines of credit
 A sweep of funds from another
deposit account of the customer
 A courtesy period during which the
customer can clear the overdraft
 An ad hoc decision to pay or not pay
the overdrawn amount, or some other
combination of allowances
Regardless of the type, the bank may
choose to also impose a previously
disclosed fee upon the overdrawn
transactions as a deterrent to future
activity or to cover costs incidental
to administering the program. Fee
disclosures are typically provided at
account opening, the commencement of
an overdraft feature, a change in terms
related to the overdraft or account
program, and any other subsequent
disclosure trigger. Sound compliance
management requires consistent
written disclosures, procedures and
actual practices.
Overdraft programs benefit
customers by helping ensure
transactions are still processed and
that a payee is not notified regarding
the customer's account balance. Bank
regulators have issued guidance and
expressed concerns about how banks
administer overdraft programs and the
I
24 // ICBA Independent Banker // February 2023
Illustration by Jozefmicic/Adobe

Independent Banker - February 2023

Table of Contents for the Digital Edition of Independent Banker - February 2023

Table of Contents
Independent Banker - February 2023 - Cover1
Independent Banker - February 2023 - Cover2
Independent Banker - February 2023 - Table of Contents
Independent Banker - February 2023 - 2
Independent Banker - February 2023 - 3
Independent Banker - February 2023 - 4
Independent Banker - February 2023 - 5
Independent Banker - February 2023 - 6
Independent Banker - February 2023 - 7
Independent Banker - February 2023 - 8
Independent Banker - February 2023 - 9
Independent Banker - February 2023 - 10
Independent Banker - February 2023 - 11
Independent Banker - February 2023 - 12
Independent Banker - February 2023 - 13
Independent Banker - February 2023 - 14
Independent Banker - February 2023 - 15
Independent Banker - February 2023 - 16
Independent Banker - February 2023 - 17
Independent Banker - February 2023 - 18
Independent Banker - February 2023 - 19
Independent Banker - February 2023 - 20
Independent Banker - February 2023 - 21
Independent Banker - February 2023 - 22
Independent Banker - February 2023 - 23
Independent Banker - February 2023 - 24
Independent Banker - February 2023 - 25
Independent Banker - February 2023 - 26
Independent Banker - February 2023 - 27
Independent Banker - February 2023 - 28
Independent Banker - February 2023 - 29
Independent Banker - February 2023 - 30
Independent Banker - February 2023 - 31
Independent Banker - February 2023 - 32
Independent Banker - February 2023 - 33
Independent Banker - February 2023 - 34
Independent Banker - February 2023 - 35
Independent Banker - February 2023 - 36
Independent Banker - February 2023 - 37
Independent Banker - February 2023 - 38
Independent Banker - February 2023 - 39
Independent Banker - February 2023 - 40
Independent Banker - February 2023 - 41
Independent Banker - February 2023 - 42
Independent Banker - February 2023 - 43
Independent Banker - February 2023 - 44
Independent Banker - February 2023 - 45
Independent Banker - February 2023 - 46
Independent Banker - February 2023 - 47
Independent Banker - February 2023 - 48
Independent Banker - February 2023 - 49
Independent Banker - February 2023 - 50
Independent Banker - February 2023 - 51
Independent Banker - February 2023 - 52
Independent Banker - February 2023 - 53
Independent Banker - February 2023 - 54
Independent Banker - February 2023 - 55
Independent Banker - February 2023 - 56
Independent Banker - February 2023 - 57
Independent Banker - February 2023 - 58
Independent Banker - February 2023 - 59
Independent Banker - February 2023 - 60
Independent Banker - February 2023 - 61
Independent Banker - February 2023 - 62
Independent Banker - February 2023 - 63
Independent Banker - February 2023 - 64
Independent Banker - February 2023 - 65
Independent Banker - February 2023 - 66
Independent Banker - February 2023 - 67
Independent Banker - February 2023 - 68
Independent Banker - February 2023 - 69
Independent Banker - February 2023 - 70
Independent Banker - February 2023 - 71
Independent Banker - February 2023 - 72
Independent Banker - February 2023 - 73
Independent Banker - February 2023 - 74
Independent Banker - February 2023 - 75
Independent Banker - February 2023 - 76
Independent Banker - February 2023 - 77
Independent Banker - February 2023 - Cover3
Independent Banker - February 2023 - Cover4
https://www.nxtbook.com/mspc/independentbanker/october2024
https://www.nxtbook.com/mspc/independentbanker/september2024
https://www.nxtbook.com/mspc/independentbanker/august2024
https://www.nxtbook.com/mspc/independentbanker/july2024
https://www.nxtbook.com/mspc/independentbanker/june2024
https://www.nxtbook.com/mspc/independentbanker/may2024
https://www.nxtbook.com/mspc/independentbanker/april2024
https://www.nxtbook.com/mspc/independentbanker/march2024
https://www.nxtbook.com/mspc/independentbanker/february2024
https://www.nxtbook.com/mspc/independentbanker/january2024
https://www.nxtbook.com/mspc/independentbanker/december2023
https://www.nxtbook.com/mspc/independentbanker/november2023
https://www.nxtbook.com/mspc/independentbanker/october2023
https://www.nxtbook.com/mspc/independentbanker/september2023
https://www.nxtbook.com/mspc/independentbanker/august2023
https://www.nxtbook.com/mspc/independentbanker/july2023
https://www.nxtbook.com/mspc/independentbanker/june2023
https://www.nxtbook.com/mspc/independentbanker/may2023
https://www.nxtbook.com/mspc/independentbanker/april2023
https://www.nxtbook.com/mspc/independentbanker/march2023
https://www.nxtbook.com/mspc/independentbanker/february2023
https://www.nxtbook.com/mspc/independentbanker/january2023
https://www.nxtbook.com/mspc/independentbanker/december2022
https://www.nxtbook.com/mspc/independentbanker/november2022
https://www.nxtbook.com/mspc/independentbanker/october2022
https://www.nxtbook.com/mspc/independentbanker/september2022
https://www.nxtbook.com/mspc/independentbanker/august2022
https://www.nxtbook.com/mspc/independentbanker/july2022
https://www.nxtbook.com/mspc/independentbanker/june2022
https://www.nxtbook.com/mspc/independentbanker/may2022
https://www.nxtbook.com/mspc/independentbanker/april2022
https://www.nxtbook.com/mspc/independentbanker/march2022
https://www.nxtbook.com/mspc/independentbanker/february2022
https://www.nxtbook.com/mspc/independentbanker/january2022
https://www.nxtbook.com/mspc/independentbanker/december2021
https://www.nxtbook.com/mspc/independentbanker/november2021
https://www.nxtbook.com/mspc/independentbanker/october2021
https://www.nxtbook.com/mspc/independentbanker/september2021
https://www.nxtbook.com/mspc/independentbanker/august2021
https://www.nxtbook.com/mspc/independentbanker/july2021
https://www.nxtbook.com/mspc/independentbanker/june2021
https://www.nxtbook.com/mspc/independentbanker/may2021
https://www.nxtbook.com/mspc/independentbanker/april2021
https://www.nxtbook.com/mspc/independentbanker/march2021
https://www.nxtbook.com/mspc/independentbanker/february2021
https://www.nxtbook.com/mspc/independentbanker/january2021
https://www.nxtbook.com/mspc/independentbanker/december2020
https://www.nxtbook.com/mspc/independentbanker/november2020
https://www.nxtbook.com/mspc/independentbanker/october2020
https://www.nxtbook.com/mspc/independentbanker/september2020
https://www.nxtbook.com/mspc/independentbanker/august2020
https://www.nxtbook.com/mspc/independentbanker/july2020
https://www.nxtbook.com/mspc/independentbanker/june2020
https://www.nxtbook.com/mspc/independentbanker/may2020
https://www.nxtbook.com/mspc/independentbanker/april2020
https://www.nxtbook.com/mspc/independentbanker/march2020
https://www.nxtbook.com/mspc/independentbanker/february2020
https://www.nxtbook.com/mspc/independentbanker/january2020
https://www.nxtbook.com/mspc/independentbanker/december2019
https://www.nxtbook.com/mspc/independentbanker/november2019
https://www.nxtbook.com/mspc/independentbanker/october2019
https://www.nxtbook.com/mspc/independentbanker/september2019
https://www.nxtbook.com/mspc/independentbanker/august2019
https://www.nxtbook.com/mspc/independentbanker/july2019
https://www.nxtbook.com/mspc/independentbanker/june2019
https://www.nxtbook.com/mspc/independentbanker/may2019
https://www.nxtbook.com/mspc/independentbanker/april2019
https://www.nxtbook.com/mspc/independentbanker/march2019
https://www.nxtbook.com/mspc/independentbanker/february2019
https://www.nxtbook.com/mspc/independentbanker/january2019
https://www.nxtbook.com/mspc/independentbanker/december2018
https://www.nxtbook.com/mspc/independentbanker/november2018
https://www.nxtbook.com/mspc/independentbanker/october2018
https://www.nxtbook.com/mspc/independentbanker/september2018
https://www.nxtbook.com/mspc/independentbanker/august2018
https://www.nxtbook.com/mspc/independentbanker/july2018
https://www.nxtbook.com/mspc/independentbanker/june2018
https://www.nxtbook.com/mspc/independentbanker/may2018
https://www.nxtbook.com/mspc/independentbanker/april2018
https://www.nxtbook.com/mspc/independentbanker/march2018
https://www.nxtbook.com/mspc/independentbanker/february2018
https://www.nxtbook.com/mspc/independentbanker/january2018
https://www.nxtbook.com/mspc/independentbanker/december2017
https://www.nxtbook.com/mspc/independentbanker/november2017
https://www.nxtbook.com/mspc/independentbanker/october2017
https://www.nxtbook.com/mspc/independentbanker/september2017
https://www.nxtbook.com/mspc/independentbanker/august2017
https://www.nxtbook.com/mspc/independentbanker/july2017
https://www.nxtbook.com/mspc/independentbanker/june2017
https://www.nxtbook.com/mspc/independentbanker/may2017
https://www.nxtbook.com/mspc/independentbanker/april2017
https://www.nxtbookmedia.com