Summary: Overdraft Rule Review Pursuant to the Regulatory Flexibility Act

12 CFR Part 1005

Consumer Financial Protection Bureau
Prepared by the NASCUS Legislative & Regulatory Division
May 2019

The Consumer Financial Protection Bureau (Bureau) is conducting a review of the 2009 Overdraft rule in compliance with Section 610 of the Regulatory Flexibility Act.  The Bureau is seeking comment on the economic impact of the overdraft rule on small entities.  The Bureau intends to use the comments received to determine whether the rule should be continued without change or amended/rescinded to minimize significant economic impact on small entities. 

The RFA request for comments can be found here.  Comments are due to the Bureau no later than July 1, 2019.


The Overdraft Rule was issued in 2009 and limits the ability of financial institutions to assess overdraft fees for paying automated teller machine (ATM) and one-time debit card transactions that overdraw consumer accounts. 

Under the Regulatory Flexibility Act (RFA), agencies are required to consider the effect on small entities for certain rules.  Section 610 of the RFA requires agencies to publish a plan for periodic review of rules that will or have had a significant economic impact on small entities.  During the RFA review, agencies are required to consider the following factors:

  • The continued need for the rule;
  • The nature of public complaints or comments on the rule;
  • The complexity of the rule;
  • The extent to which the rule overlaps, duplicates or conflicts with Federal, State or other rules; and
  • The time since the rule was evaluated or the degree to which technology, market conditions, or other factors have changed the relevant market.

The Bureau is requesting feedback on the following:

  • The nature and extent of the economic impacts of the Rule as a whole and of its major components on small entities, including impacts of the reporting, recordkeeping, and other compliance requirements of the Overdraft Rule, as well as benefits of the Rule;
  • Whether and how the Bureau by rule could reduce the costs of the Overdraft Rule on small entities, consistent with state objectives of EFTA and the Overdraft Rule; and
  • Any other information relevant to the factors that the Bureau considers in completing a Section 610 Review under the Regulatory Flexibility Act.