Tabs

Bank/Thrift Supervision   |    Capital    |    CFPB    |    Deposit Insurance    |    Interchange    |    Mortgage Finance
Municipal Advisors   |    OCC-OTS Merger   |    Preemption    |    QM - QRM    |    Swaps   |    Volcker Rule    |    Full Topics List
 
Qualified Mortgage - Qualified Residential Mortgage
Swaps
Consumer Financial Protection Bureau - CFPB
Bank/Thrift Holding Company Supervision
Capital
Deposit Insurance
Interchange
Mortgage Finance
Municipal Advisors
OCC-OTS Merger
Preemption
Volcker Rule
Corporate Governance
Financial Stability Oversight Council (FSOC)
Appraisals
Office of Financial Research (OFR)
Systemic Risk
Supervision and Oversight
Payment, Clearing and Settlement
Prudential Supervision
Trust & Securities
Asset-Backed Securities
Resolution Authority

Wednesday, February 4, 2015

ABA’s Abernathy Takes on CFPB’s ‘Safe Accounts’ for Students

The CFPB’s “safe account” model for college students will limit innovation and choices in the financial products offered to students, ABA EVP Wayne Abernathy said in an American Banker op-ed. He argued that the bureau’s proposal goes too far in prescribing what these accounts must look like.

The CFPB’s proposed account template — which comes in the form of voluntary documentation that colleges can seek from financial institutions they partner with — would impose no fees for basic services except a monthly maintenance fee and would permit neither overdraft fees nor non-sufficient funds fees. Abernathy explained”

Moreover, prescriptive regulation can curb innovation. Student account holders may have to wait while friends not in college get access to features made possible by new technologies.

Read the op-ed.

No comments:

Post a Comment

Please read our comment policy before making a comment.