CFPB To Increase Oversight Over Bank Overdraft Fees

Based on two new research reports (see here and here) the CFPB will increase supervision of banks that are heavily reliant on overdraft fees and "will be taking action to restore meaningful competition to this market."

The researchers found that banks rely heavily on overdraft and non-sufficient funds revenue to feed their profit models and that overdraft fees present serious risks to consumers. The researchers found that in 2019, overdraft and non-sufficient funds revenue reached an estimated $15.47 billion, which was almost two thirds of the market's overall reported fee revenue. Due to the risk to consumers, the CFPB stated they will enhance their oversight of this practice.