WASHINGTON, D.C. – As part of the Biden administration’s ongoing efforts to lower costs for Americans, the Consumer Financial Protection Bureau (CFPB) unveiled a new proposal today banning non-sufficient fund fees, the junk fees that occur when debit card purchases and ATM withdrawals are declined at the point of purchase due to insufficient funds.
When it comes to high-cost surprise junk fees that big banks love to charge, non-sufficient fund fees are perhaps the most greedy – punishing consumers for something they didn’t even purchase. The latest Biden administration crackdown on excessive junk fees will lift more burden off the shoulders of American families by lowering costs. The more schemes bank CEOs create to price-gouge Americans –like these real-time fees–the more excuses Republicans in Congress in their pocket make for their greedy practices. This latest cost-saving initiative is a reminder why hard-working Americans need the Consumer Financial Protection Bureau to remain strong and independent.”
Accountable.US’ Liz Zelnick.
Today’s proposal is a significant step in the CFPB’s broader fight against junk fees—which includes a proposal issued last week limiting overdraft fees to as low as $3—and is expected to save Americans as much as $2 billion a year. Survey results released by the CFPB late last year found that over a quarter of consumers had been charged an overdraft or NSF fee within the past year. Among the households burdened with an NSF fee, 81% reported difficulty paying a bill at least once in the past year.