Consumer alerts

Tell the CFPB: Rein in bank overdraft fees

Kawee Srital On | CC-BY-4.0

Financial institutions rake in billions of dollars a year from overly punitive overdraft fees, which mostly penalize customers with the least money to lose. Many banks commonly charge about $35 per overdraft, sometimes three to five times in a single day.

It’s long overdue to rein in overdraft fees. If the CFPB’s proposed rule takes effect, overdraft fees will be more reasonable and in line with the actual costs to banks.

In practice, overdraft fees have functioned as high-cost credit, so it only makes sense to regulate excessive fees as such. I strongly urge the CFPB to finalize these much needed consumer credit protections as soon as possible.


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