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The CFPB outlined four areas of interest in its inquiry: The reordering of transactions in ways that increase costs to consumers. Missing or confusing information. The agency wants to make sure people understand how they can avoid overdraft fees. It will look at how the fees are disclosed and what other options are presented. Misleading marketing. The number of people who choose overdraft protection varies widely from bank to bank, the CFPB noted. It wants to know how marketing affects people's decisions. The Center for Responsible Lending report noted several examples of misleading or threatening language in banks' marketing materials. Disproportionate impact on low-income and young consumers. According to a 2008 study by the Federal Deposit Insurance Corp., 9 percent of checking accounts incur 84 percent of overdraft fees. The study found that nearly half of younger cardholders paid the fees. The CFPB also is requesting public input on a draft "penalty fee box"
-- a disclosure on a consumer's checking-account statement that would highlight any overdrafts and related fees. The results of the probe will inform the CFPB's policy on overdraft programs. It could spawn consumer-education efforts, new rules, guidance for bank examiners or legal action against banks that are accused of wrongdoing.
[Associated
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