Page 5 - December 19. 2024 Bulletin

aRTiCLeS

because of the Weiss requirement, “raising concerns of increased and do not respond” to unsolicited requests, phone calls and
costs and administrative burdens on support recipients.” The emails claiming to be from financial institutions requesting
FCC will instead allow U.S. banks that are well-capitalized as personal or financial information. “Even if the message seems
determined by the FDIC and other banking agencies to issue official, verify the source and confirm the legitimacy of requests
LOCs for both the RDOF and Universal Service Fund. by directly contacting the requesting entity through official
channels,” the advisory states.
Read more: https://docs.fcc.gov/public/attachments/DOC-408137A1.pdf
The document encourages consumers to verify websites and
CFPB Finalizes Effective Cap on emails, avoid clicking links or responding to unsolicited
Overdraft Fees requests, not to trust caller ID and to never share sensitive
information. It also provides tips for consumers targeted by
With a little over a month left in the Biden administration, the scams about who they should contact to protect their credit and
CFPB has finalized a controversial rule on overdraft protection. report incidents.

Under the final rule, covered institutions may choose one of Read more: https://home.treasury.gov/system/files/136/2024-
three options to comply with its requirements: capping their CYBER-CRIME-Advisory-Report.pdf
overdraft fee at a flat $5, which is what the bureau asserts would
cover costs at “most banks”; selecting a cap that covers their
actual costs and losses; or treating overdraft protection as a Associations File Lawsuit
loan covered by the Truth in Lending Act, which will require Challenging CFPB Cap on
compliance with Regulation Z’s account opening disclosures,
sending periodic statements, and prohibiting the compulsory Overdraft Fees
use of automatic funds transfers to repay the overdraft, among The Mississippi Bankers Association, joined by the ABA and
other requirements. The rule covers banks and credit unions associations representing bankers and credit unions, filed a
with more than $10 billion in assets. lawsuit challenging the CFPB’s effective cap on overdraft fees.
The CFPB first proposed to limit overdraft fees earlier this year The lawsuit was filed in U.S. District Court for Southern
as part of a broader push against so-called “junk fees” by the Mississippi.
Biden administration. The rule finalized today would not take
effect until Oct. 1, 2025.
Earlier the same day, the CFPB had issued a final rule limiting
Read more: https://files.consumerfinance.gov/f/documents/ banks with at least $10 billion in assets from charging overdraft
cfpb_overdraft-credit-very-large-financial-institutions_proposed- fees of more than $5 unless they voluntarily set a cap that
rule_2024-01.pdf covers their actual costs and losses, or treats overdraft protection

Agency Releases Tips for as a loan covered by the Truth in Lending Act, or TILA. In
their lawsuit, the associations argue that overdraft fees can’t be
Consumers on Avoiding Holiday regulated under TILA as they are not credit products, and that
Scams CFPB acted arbitrarily and capriciously by failing to consider
the costs and benefits of the rule.
The Office of Cybersecurity and Critical Infrastructure “Over the years, financial institutions have innovated to offer a
Protection has released a consumer advisory on avoiding wide variety of features for overdraft services at a range of price
cyber and online scams during the holiday season, including a points, and consumers can choose the financial institution and
warning about suspicious texts or emails claiming to come from the type of account that best suits their needs,” the plaintiffs
financial institutions. said. The CFPB rule, “which makes it costlier and more difficult
OCCIP noted that cybercrime contributed to more than for a financial institution to provide overdraft services, will harm
$12.5 billion in losses in 2023, marking a 22% increase from the very consumers the CFPB purports to benefit,” they added.
2022. “With the holiday season here, cybercriminals are using The associations asked the court to find the final rule violates
multiple platforms to conduct fraudulent activities, targeting TILA and other federal statutes and overturn it.
consumers during holiday shopping events,” the office said.
Read more: https://consumerbankers.com/wp-content/
The advisory warns consumers to beware urgent notifications uploads/2024/12/CBA-ABA-ACU-MBA-Overdraft-Complaint.pdf
about account problems or compromise, and to take steps to
secure their devices and accounts. It also urges “extreme caution

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