CFPB withdraws instantaneously declined transaction fee proposal
Published by: Sean Brown
January 22, 2025 | Regulatory
Unless otherwise deemed abusive, unauthorized, or illegal, the terms and conditions of agreements between credit unions and their member-owners are best left to those involved. That is why the League submitted a comment letter opposing the CFPB’s proposal to classify fees for instantaneously declined transactions as “abusive practices,” highlighting that such fees are rare in credit unions and emphasizing the informed choices and direct influence of member-owners on their credit unions’ operations. The CFPB withdrew this proposal due to lack of evidence that charging these types of fees is a common practice, which matched feedback from the Credit Union Movement. While this withdrawal is a small victory demonstrating the power of advocacy, the CFPB’s decision suggests ongoing scrutiny of service fees, with potential future action on NSF fees and similar charges. Your engagement remains vital as we continue to advocate for credit unions and their members.
Contact Sean Brown for questions or assistance.
