Consumer Financial Protection Bureau limits what banks can charge with an overdraft fee
$35 overdraft fees have grown to become one of major banks biggest source of revenue. The Consumer Financial Protection Bureau (CFPB) estimates that banks made a total of $5.83 billion overdraft/NSF fees last year in 2023 which was down 51% or $6.13 billion in 2019 that totaled $11.19 billion.
The CFPB has finalized a new rule that will begin in 2025 preventing banks from charging their regular $35 overdraft/NSF fees. Now no more than $5 can be charged for n overdraft/NSF fee.
NASDAQ has, Rohit Chopra, CFPB’s director qouted as saying, “The CFPB is cracking down on these excessive junk fees.” These new rules are eestimated to save American households $225 a year in fees.