Press Releases
Senate Republicans Poised to Undo Rule Capping Overdraft Fees
This move will cost American families that pay overdraft fees an average of $225 annually
WASHINGTON, DC — Continuing their effort to make banking harder and costlier for Americans, the Republican-led Senate is expected to vote today to block the Consumer Financial Protection Bureau’s (CFPB) overdraft late fee rule. If successful, this move will allow big banks and financial institutions to continue exploiting American families, costing those that pay overdraft fees an average of $225 annually. Blocking the rule leaves millions vulnerable to excessive overdraft fees of up to $35, with no recourse for relief.
Senate Republicans are siding with big banks to make it easier for them to trick their customers into paying excessive fees. The CFPB’s overdraft rule limits abusive fees and puts money back in the pockets of consumers. Any vote against the rule is a gift to Wall Street special interests at our expense.”
Accountable.US Executive Director Tony Carrk.
Overdraft fees affect a huge portion of American families. In 2024, Americans paid $12.1 billion in overdraft and NSF fees. Most of those fees are levied for overdrafts that are less than $26 and are repaid within 3 days—meaning customers pay the equivalent of a 16,000% annual percentage rate (APR) on transactions most would rather have denied.
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