More Predict 2015 CFPB Rules Will Reduce OD Income

The CFPB propose rules for prepaid cards, along with their work on Colorado payday loans and other regulatory actions clearly show where they are headed in addressing overdraft services.  They are expected to issue new guidance in early 2015, and the two likely changes are that overdrafts users must have a longer time to repay rather than at the next deposit, and the ability of the overdraft user to repay any overdraft should be more thoroughly assessed.

Value Walk, an investment analyst group, has now prepared a report documenting the potential loss in revenue, as shown below.

       Value Walk Report Excerpt

Wise bankers will begin planning now how they will serve customers, and protect and grow their income.  Fortunately, PaySound meets the exact needs of longer time to repay and analysis of ability to repay so can provide full liquidity services to your customers in the new environment.  Begin planning now and don't get caught flat-footed when the new rules are announced.