Overdraft Fees news and trends

CFPB Issues Guidance Targeting Banks’ ‘Phantom Opt-In Agreements’
Bank Regulation // September 17, 2024

The Consumer Financial Protection Bureau (CFPB) aims to stop banks from charging overdraft fees based on what it calls “phantom opt-in agreements” — cases in which banks claim to have customer consent to charge overdraft fees but can provide no proof. The agency published a...

Canada’s Federal Budget Aims to Curb Overdraft Fees
Bank Regulation // April 18, 2024

Canada’s federal budget, released this week, includes a proposal to limit the fees that banks charge customers for overdrawing their accounts. This move is expected to provide relief for low-income clients but could potentially impact the revenue of Canadian banks, Bloomberg reported Thursday (April 18). The proposed...

Proposed California Law Could Cap CU Overdraft Fees
Credit Unions // April 10, 2024

California state lawmakers are considering legislation that would limit the number of overdraft fees credit unions (CUs) can charge their members. Under SB-1075, the 100+ CUs now doing business in the Golden State would be prohibited from charging their customers more than three overdraft fees per...

CFPB Rule on Late Fees May Hamper Banks’ Ability to Innovate
Banking // March 05, 2024

Call it a form of fixed pricing in the banking industry. Financial services are joining the ranks of segments, such as pharma, where there are rules governing what enterprises can charge customers. And there may be some unintended consequences as a result. The Consumer Financial Protection...

Interviews & Exclusives
CFPB Rule on Late Fees May Hamper Banks’ Ability to Innovate

March 05, 2024
Call it a form of fixed pricing in the banking industry. Financial services are joining the ranks of segments, such as pharma, where there are rules governing what enterprises can charge customers. And there may be some unintended consequences as a result. The Consumer Financial Protection Bureau finalized Tuesday (March 5) a rule that cuts what it […]

CFPB Says Overdraft Fees Are Junk Fees — But Are They?

January 17, 2024
Labels are popular on Capitol Hill. And this week the labels are flying fast and furiously, aimed at big banks and credit unions. The Consumer Financial Protection Bureau (CFPB) put...

Smaller Banks Warn of ‘Significant Impact’ From CFPB’s Proposed Overdraft Fee Regulation

January 04, 2024
The calendar has barely turned to a new year — and the Consumer Financial Protection Bureau (CFPB) has already had a fair share of criticism. The most recent volley against...

New Report Finds the Average Consumer Is Overdrawn for 9 Days

October 12, 2023
Present economic and financial challenges have compelled individuals from various income brackets and credit backgrounds to resort to overdrafts — a form of credit whereby a consumer’s bank covers a...

Quick Reads
CFPB Issues Guidance Targeting Banks’ ‘Phantom Opt-In Agreements’

September 17, 2024
The Consumer Financial Protection Bureau (CFPB) aims to stop banks from charging overdraft fees based on what it calls “phantom opt-in agreements” — cases in which banks claim to have customer consent to charge overdraft fees but can provide no proof. The agency published a guidance to help federal and state consumer protection enforcers stop […]

Big Banks See Overdraft Fee Revenues Fall 25%

February 11, 2024
America’s three biggest consumer banks saw their overdraft fee revenues fall 25% in 2023. J.P. Morgan Chase, Bank of America and Wells Fargo collected $2.2 billion in total in those fees last year, a recent...

CFPB Moves to Close ‘Outdated’ Bank Overdraft Loophole

January 17, 2024
The White House wants to limit the overdraft fees banks can charge customers. To that end, the U.S. Consumer Financial Protection Bureau (CFPB) on Wednesday (Jan. 17) issued a proposal that would...

CFPB Finds Atlantic Union Bank Misled Customers About Fees

December 07, 2023
The Consumer Financial Protection Bureau (CFPB) has ordered Atlantic Union Bank to pay $6.2 million, saying the bank misled customers and improperly enrolled them into paying overdraft fees. The $6.2...