Members of the payday loan industry, take heart.  The Consumer Financial Protection Bureau is not singling out the payday loan industry for examination.  They have already gathered data and opinions on the insurance industry, and that report is due in March; they are collecting information credit report bureaus, as well as debt collection agencies.  They have announced their latest targets.

Bank overdraft fees.

The agency will handle the review process as they have with other industries.  They are seeking information from banks how they handle overdrawn accounts and the fees are assessed.  The Bureau estimates that banks charged between $15 and $22 million in fees last year.  They estimate that 9% of the population incurs 84% of the fees.  The poor and the young, you could call them.

A rule from the Federal Reserve last year now requires banks to have customers sign-up for programs allowing them to overdraft to their accounts with ATM or debit card transactions.  This rule change has cost the bank’s an estimated $4 billion.

The feeling is that this has hurt smaller banks who do not offer the range of fees that the big banks do.  The truth of the matter is that banks are raising fees on other services to make up for the loss in income.

In making the announcement, CFPB head, Richard Cordray, had this to say, "they (financial institutions) understand that we have a job to do. We are required by Congress to protect consumers in the financial marketplace. Many of the players in the industry seem to recognize what I preach constantly, which is that protecting consumers is good for responsible financial providers in the marketplace."