Through a field hearing on checking account access, the release of an announcement and Compliance Bulletin 2016-01, the CFPB encourages financial institutions to provide lower-risk accounts to consumers that either do not want, or are unable to qualify for an account, that provides overdraft protection. The releases contain a number of items related to this topic.

Lower-Risk Product Offering

The CFPB is encouraging financial institutions to offer the choice of enrolling in deposit accounts that are designed to help consumers manage their spending and avoid overdrafts, and to prominently feature these accounts online and in-branch. Included in the safer-product suggestions are reloadable pre-paid cards.

The CFPB sent a letter to the 25 largest banks urging them to do more to create or promote deposit accounts designed to meet consumer’s financial needs.

The CFPB is still considering additional consumer protection rules related to overdraft services.

Accurate Reporting Requirements

Financial institutions have an obligation ensure that any information reported to consumer reporting companies is correct, including accounts closed for fraud or unpaid balances. Compliance Bulletin 2016-01 reminds institutions of their obligations for accuracy and integrity of information reported.

Consumer Advisory Resources

The CFPB also released consumer advisory resources to help people know what to do if they have been denied a deposit account or have an involuntary account closure. The advisory informs consumers that lower-risk accounts do exist and can help them take control of their spending.

The guide to select a lower-risk account can be found at: http://files.consumerfinance.gov/f/201602_cfpb_consumer-guide-to-selecting-a-lower-risk-account.pdf

The guide to manage your checking account can be found at: http://files.consumerfinance.gov/f/201602_cfpb_consumer-guide-to-managing-your-checking-account.pdf

The consumer advisory about being denied a checking account can be found at: http://files.consumerfinance.gov/f/201602_cfpb_consumer-guide-to-being-denied-a-checking-account.pdf

Credit Union Actions

The releases do not impose any new or revised requirements, but credit unions should:

• Ensure that reasonable written policies and procedures are implemented and in place, regarding the accuracy of the deposit account information provided to the consumer reporting companies

Credit unions may also want to:

• Offer, or expand options for, low risk accounts
• Increase marketing presence for these type of accounts