CFPB Proposes Rule to Ban NSF Fees on Declined Real-Time Transactions

The proposal is part of a broader crackdown on 'junk fees' and aims to prevent new ones from emerging in the future.

• The Consumer Financial Protection Bureau (CFPB) has proposed a rule to ban non-sufficient funds (NSF) fees on real-time transactions that are immediately declined due to insufficient funds.
• The proposed rule would apply to banks, credit unions, and certain peer-to-peer payment companies.
• CFPB Director Rohit Chopra stated that the rule is a proactive step to prevent 'new junk fees from emerging in the future.'
• The CFPB's proposal is part of a broader regulatory crackdown on NSF fees and follows a proposal to limit overdraft fees to as low as $3.
• The public has until March 25 to comment on the proposal.

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