Brown’s Bill Could Kill Overdraft Reordering
The Consumer Financial Protection Bureau’s attempts to rein in overdraft reordering gained ammunition today when Sen. Sherrod Brown (D-Ohio), Chair of the Senate Banking Subcommittee on Financial Institutions and Consumer Protection, announced he will soon introduce legislation that would grant the CFPB legal authority over the practice.
“Banks should play by the rules instead of purposefully ‘reordering’ their costumers’ debit card transactions so that they profit while consumers rack up costly penalties,” Brown said in a press conference in Cleveland. “My bill would put a stop to this by empowering the Consumer Financial Protection Bureau to crack down on banks that employ predatory practices. It also would allow the CFPB to establish fair guidelines to protect consumers and the banks and credit unions that play fair with their customers.”