US states call on US administration not to roll back overdraft rules.

Global Banking News-July 3, 2019--US states call on US administration not to roll back overdraft rules

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Global Banking News - 03 July 2019

Attorneys general of New York and 23 other states, as well as Washington, DC, have called on the US administration not to roll back rules concerning overdrafts, according to Reuters.

The states have called for maintaining a decade-old federal rule that limits the ability of banks to charge overdraft fees when customers spend more than they have in their accounts. In a letter to Kathy Kraninger, director of the Consumer Financial Protection Bureau (CFPB), the officials said that the rule should not be watered down or scrapped. They said that if the rule was revoked, it would allow banks to charge arbitrary fees on customers who overdraw.

The CFPB is to complete its review by November.

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