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Stung by Overdraft Fees? U.S. Nudges Banks to Explain Rules Better

August 11, 2017

Consumer advocates have long worried that bank customers are easily confused about how checking account overdrafts work, and that this confusion leads to costly fees.

Now, the Consumer Financial Protection Bureau is taking a crack at redesigning the form used by banks to explain overdraft options to customers, and has published samples of four possible versions for public scrutiny.

The overdraft form is the latest financial document to receive a makeover from the bureau: In 2015, the agency adopted simplified mortgage disclosure forms, which are meant to help borrowers understand the terms of their home loans.