Trump and Republicans Look To Increase Bank Overdraft Fees, Costing Americans Billions

Overdraft Rule Protects Consumers Against Overdraft Fees, Trump’s Latest Broken Campaign Promise to Lower Costs

WASHINGTON, D.C. — New reporting today from Politico is another devastating blow to American consumers, with congressional Republicans eyeing legislative action to undo the Consumer Financial Protection Bureau’s Overdraft Rule, which protects consumers against excessive and deceptive overdraft fees costing Americans billions each year.

Overdraft fees affect a huge portion of American families with 17% of households with checking accounts paying overdraft or NSF fees in 2023. This action would open the door for $35 overdraft fees—a decision that would cost American households an average of $225 each year.

“Undoing the CFPB’s overdraft fee rule is a gift to big banks and a gut punch to the wallets of millions of Americans across the country,” said Accountable.US Executive Director Tony Carrk. “Deceitful and excessive overdraft fees cost Americans billions of dollars every year, but the Trump administration and Republicans in Congress don’t seem to care any longer about lowering costs for Americans now that they’re in charge. This is just the latest broken promise from Republicans, who have used their short time in power to already cater to special interests over hard-working Americans.” 

Despite their campaign commitment to lower costs for Americans, Trump and congressional Republicans have been hard at work doing the bidding of the wealthiest and corporations: 

• On day one, Trump rescinded an executive order designed to lower prescription costs – top of the wish list for PhRMA and its members, who spent millions lobbying Washington on this very topic.
• President Trump’s short-sighted tariff campaign is poised to raise everyday costs, with Trump and his top billionaire allies telling Americans to “get over” and endure “hardship.”
• Trump has nominated Jonathan McKernan as CFPB Director, who the big banks have praised as someone who will “undo many of the most recent actions by the Chopra CFPB” – those of which include fighting overdraft fees, capping credit card late fees, and protecting consumers from discrimination, resulting in $20 billion dollars back into the pockets of consumers.

###