CFPB: Banks need to keep proof of consent for certain overdraft fees

The Consumer Financial Protection Bureau issued a circular that says a financial institution violates the Electronic Fund Transfer Act and Regulation E if “there is no proof that it has obtained consumers’ affirmative consent before levying overdraft fees for ATM and one-time debit card transactions.”

Details: Reg E dictates that banks need to keep proof of customer consent to the fees, but the guidance suggests that such records would need to be retained indefinitely.