The Consumer Financial Protection Bureau is still deciding if additional supervision or regulation will be required to ensure that new bank overdraft programs are being properly run.
Recently imposed rules on overdraft programs, according to the bureau, may result in inconsistent supervision among different types of financial institutions, according to Bloomberg.com.
“We will be monitoring the impact of the recent regulatory and supervisory interventions,” Raj Date, the acting head of the bureau, said, Bloomberg.com reports. “If we find that these interventions are not working as intended, we will adjust. And if we find that additional action is needed, we will act.”
The bureau now control consumer financial products, which includes checking accounts, and is also given the authority to write new rules for the industry. The Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency are also allowed to issue rules regarding checking accounts overdraft protection.
Regulators refer to overdraft protection as high interest short term loans, Bloomberg.com reports.
The bureau is also looking to make changes to mortgage regulations and is developing a “mortgage shopping sheet” that is intended to help people decide whether or not they can afford a to buy a home.
“We want to establish some common-sense safeguards to prevent bad practices from harming consumers,” Date said, according to Bloomberg.com. “That’s why we’re developing new rules to help borrowers get loans that make sense for them – loans that they can reasonably expect to repay.”