FOR IMMEDIATE RELEASE

Sept. 19, 2024

CONTACT
Carter Dougherty, carter@ourfinancialsecurity.org

CFPB Continues Efforts to Save Consumers Billions with Actions on Overdraft
New guidance stops banks from harvesting overdraft fees without consent

WASHINGTON, D.C. – The Consumer Financial Protection Bureau’s new guidance on overdraft fees linked to ATM and one-time debit card transactions will help curtail predatory junk fees that obscure accurate pricing on bank services.

“Yet again banks are prioritizing profits over service for consumers,” said Amanda N. Jackson, consumer campaigns director at Americans for Financial Reform. “These kinds of fees are not only hidden and imposed without consent, they can unexpectedly upend the financial lives of many people.”

Authorities should always assume consumers have not opted into overdraft unless the banks can prove otherwise. The CFPB has found that some banks have been unable to provide such evidence before they charged consumers fees for overdraft loans to cover ATM and one-time debit transactions. The CFPB’s new guidelines can reduce the likelihood that overdraft services flout the law and prevent people from being charged illegal fees.

“Today’s guidance will improve fee transparency, shield consumers from harmful practices by the financial services industry, and encourage banks to compete for depositors based on the quality of their services,” Jackson added.

Earlier this year, 142 consumer, civil rights, military, legal services, and community groups submitted comments in strong support of the CFPB’s proposed rule governing the overdraft lending practices of the largest financial institutions.

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