On Jan. 24, 2024, the Consumer Financial Protection Bureau (CFPB) released a proposed rule that would, if finalized in its present form, prohibit financial institutions from charging non-sufficient funds (NSF) fees when consumers initiate transactions that are instantaneously or near-instantaneously declined. Under the proposed “Fees for Instantaneously Declined Transactions rule (the “NSF Fee Rule”), charging such fees would constitute an “abusive” act or practice under the CFPA. The proposed NSF Fee Rule is the latest development in the CFPB’s ongoing effort to scrutinize and eliminate so-called “junk fees.”
CFPB Issues Proposed Rule to Stop ‘Junk Fees’ on Bank Accounts
