Tag:NSF Fees
Card Declined: CFPB Withdraws Proposed Rule Banning Nonsufficient Funds
On January 24, 2024, the Consumer Financial Protection Bureau (CFPB proposed a rule that would block non-sufficient funds (NSF) fees on debit card, ATM, and peer-to-peer payment transactions that are declined instantaneously or nearly instantaneously. The proposal of this rule arose from a variety of initiatives under the CFPB of the Biden administration to crack down on “junk fees” charged by banks and other financial institutions. However, on January 14, 2025 the CFPB issued notice to withdraw their proposed rule regarding NSF fees.