Final CFPB Rule Set to Save $5 Billion Annually, Despite Industry Opposition

WASHINGTON, DC — As part of the Biden administration’s ongoing efforts to lower costs for American families, the Consumer Financial Protection Bureau (CFPB) today announced its final overdraft rule, capping overdraft fees charged by banks and credit unions to as low as $5. The final rule is expected to save $5 billion in annual overdraft fees, roughly $225 per household affected.

Since it was first announced in January 2023, the financial industry has campaigned heavily to smear the CFPB’s rulemaking, going as far as to “tout the benefits of bank overdraft” fees and penalties despite the clear financial harm they inflict on millions of families. 

Joining the fight on behalf of their industry donors, House Financial Services Chair Patrick McHenry (R-N.C.) and Financial Institutions Subcommittee Chair Andy Barr’s (R-Ky.) criticisms of the rule seemed to be pulled directly from industry talking points. 

Per Accountable.US analysis, the 10 largest banks still using overdraft fees as of September 2023 raked in over $2.34 billion from the practice in the first 9 months of 2023. These banks, including JPMorgan Chase & Co, Bank of America, and Wells Fargo, have also paid billions in fines and restitution over the years for exploiting consumers with overdraft fees.

MORE FROM ACCOUNTABLE.US:

• New Overdraft Rule from Biden Administration Will Lower Costs for Families to Ire of Congressional Republicans in Pocket of Big Banks
• Banker Group’s Propaganda Website Claims Consumers Should Be Grateful for Overdraft Fees
• McHenry, Barr Lazily Copy & Paste Bank Lobbyist Talking Points Against Cost-Saving Biden Overdraft Rule

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