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The CFPB report broke down overdraft and NSF revenue in 2023 by bank and listed JP Morgan Chase as earning the highest amount ($1.1 billion), followed by Wells Fargo ($937 million), PNC Bank ($258 ...
The agency found that around a third of households with income below $65,000 were charged with an overdraft or a non-sufficient fee, compared to just 10% of consumers in households earning over ...
Or, they can treat an overdraft as a loan, giving customers a choice on whether to open a line of “overdraft credit.” The rule applies to banks with more than $10 billion in assets.
The new CFPB regulation would require large banks and credit unions to either charge just $5 for overdrafts or, alternatively, pick an amount no higher than the cost of offering overdraft protection.
Consumer complaints against big-bank junk fees are rising and federal regulations are in the works, including new rules to limit checking overdraft penalties and credit card late fees.
An overdraft fee is charged when the bank or credit union covers a deposit account holder’s transaction — a payment, withdrawal, debit or transfer when there is not enough money in that account.
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