WASHINGTON, D.C. – In tonight’s State of the Union speech, President Biden is widely expected to note progress and call for additional action to address junk fees in general and high-cost overdraft fees in particular. The Consumer Financial Protection Bureau (CFPB) recently proposed an overdraft rule that would apply to the nation’s largest banks and credit unions. The CFPB estimates the rule may save the 23 million households who pay overdraft fees in any given year $150 each year on average – while the hardest-hit households could save much more.
“The CFPB’s proposal would provide families with badly needed relief from exploitative overdraft fees. It is important for the Consumer Bureau to strengthen this proposal and to issue a final rule in a timely fashion,” said Nadine Chabrier, senior policy counsel of the Center for Responsible Lending. “Despite some progress, junk overdraft fees remain a vast problem, especially for people living paycheck to paycheck.”
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Press Contact: Matthew Kravitz matthew.kravitz@responsiblelending.org