Manatt Financial Services Partner Scott Pearson was quoted in Law360 on the Consumer Financial Protection Bureau’s (CFPB) recent proposed rule banning banks from charging certain nonsufficient funds (NSF) fees and the impact it could have on the industry as a whole.
Pearson highlighted how the CFPB’s rule could have long-term repercussions throughout the industry, especially as the U.S. payment system continues to evolve technologically. As transactions become more instantaneous, he said, more payment activity may be subject to the proposed NSF fee ban, which could potentially result in the complete outlawing of these fees. He concluded that the rule is likely “to be tested in the courts over the coming years.”
Read the complete Law360 article here.