CFPB Overdraft Fees Rule Could Save the Average Consumer Hundreds of Dollars a Year

CFPB Overdraft Fees Rule Could Save the Average Consumer Hundreds of Dollars a Year

Congress Must Support the Cap on Junk Overdraft Fees

 WASHINGTON, D.C. — The Consumer Financial Protection Bureau today announced that it has finalized its overdraft fees rule, which will curb fees from $35 to $5 at big banks with over $10 billion in assets. The bureau estimates the rule will save consumers up to $5 billion a year.

The CFPB’s rule will prevent big banks from charging huge junk overdraft fees that burden families with hundreds of dollars a year and that push people out of the banking system. The rule will promote straightforward, affordable forms of coverage protection.

 “The only way that this rule can live up to its promises to put money back into families’ pockets is if members of Congress support this important economic action for their constituents and simply let the rule go into effect,” said Christine Hines, senior policy director at National Association of Consumer Advocates.

 The new rule could face the threat of reversal if Congress uses a law, the Congressional Review Act (CRA), which allows the body to overturn rules using expedited procedures, including limited debate and a simple majority vote.

 “The CFPB rule is a win for consumers that will encourage fair treatment for customers at big banks across the board, consistent with those financial institutions who have already eliminated or reduced these burdensome charges,” Hines said.

Go here for additional information:

 https://files.consumerfinance.gov/f/documents/cfpb_overdraft-credit-very-large-financial-institutions_fact-sheet_2024-01.pdf

NACA’s joint comment with Berkeley Law’s Center for Consumer Law and Economic Justice: https://www.consumeradvocates.org/wp-content/uploads/2024/04/CFPB_Overdraft-Fees-CLASS-Comment_FINAL.pdf 

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