Blog

Credit cards are one of the most common financial products in our country, providing the bulk of short-term credit for families. Interest rates on credit cards have risen substantially, with average interest rates going over 20%. Given the trends for the 175 million Americans with credit cards, the CFPB estimates that outstanding credit card debt may continue to set records and could even hit $1 trillion.

This blog post examines recent changes in overdraft and NSF fee revenues reported in call reports to understand how announced changes in overdraft policies affected these revenues.

Banks and credit unions heavily rely on fees from overdrafts and non-sufficient funds transactions. We’ve launched a supervisory effort to measure the impact of overdraft practices on consumers.

A number of large banks are eliminating non-sufficient fund (NSF) fees on checking accounts, cutting total NSF fee volume by about 50%, or $1 billion, annually. Other banks continue to charge these fees. The Bureau is closely scrutinizing whether and when charging these fees may be unlawful.

People dealing with frequent overdraft fees may face a difficult and expensive uphill climb. These fees are often assessed for reasons people do not expect or understand, take a heavy toll on families living paycheck to paycheck, and in some cases ultimately drive people out of banking altogether.

The Consumer Financial Protection Bureau (CFPB) announced today that it will extend the deadline for the public to share input and stories on their experiences with exploitative junk fees through April 11, 2022.

Overdraft fees cost Americans an estimated $15.5 billion in 2019. Some banks have made recent changes to their overdraft programs; take a look here to see how your bank fares compared to others.

Households across the U.S. have been feeling the cost of higher prices. As individuals and families adjust to the pinch on pocketbooks there are some fees they just can’t seem to escape – junk fees. The CFPB wants to hear from you on how junk fees have impacted your everyday financial lives.

From 2018 to 2020, the CFPB estimates that Americans paid roughly $120 billion per year in credit card interest and fees. That works out to about $1,000 per year for every American household.