WASHINGTON — The Consumer Financial Protection Bureau has extended the comment period until June 29 for its public inquiry into overdraft practices.
The agency said this week that it had extended the deadline — originally set for Monday, April 30 — by 60 days "to ensure all stakeholders have sufficient time to respond to our questions and enable us to learn as much as we can from the public's input." The study would pave the way for new restrictions on overdraft fees.
CFPB launched the inquiry into overdraft practices in February, and issued a notice and request for information seeking feedback from consumers. It also requested data from a number of banks on their policies, terms and marketing of overdraft programs.
"While we've already netted a tremendous number of responses, we've also received requests for more time," Gary Stein, the CFPB's deposit markets program manager, wrote in a blog post.
The agency has said the inquiry is focused on four main areas of concern: reordering transactions from high-to-low to increase consumer costs; missing or confusing information about the terms of overdraft programs; misleading marketing materials; and the disproportionate impact the programs have on low-income and young consumers.
"The information we collect will inform how we regulate and the guidance we give to consumers to make smart financial decisions," Stein said.
