Reports

This report provides new insights on how price complexity may affect markets for consumer goods. We report on two laboratory experiments that investigated the effects of price complexity on market outcomes.

Overdraft/NSF revenue for the full year of 2023 was approximately $6.1 billion lower than before the pandemic, and 24% lower than in 2022. However, quarterly overdraft/NSF fees were flat throughout 2023, suggesting most of the year-over-year reduction reflects the impact of changes in policy enacted in 2022.

CFPB recently analyzed the NSF fee practices of a number of banks and credit unions, finding that most large earners of NSF fee revenue have eliminated these fees, saving consumers nearly $2 billion annually.

Overdraft/NSF revenue for the fourth quarter of 2022 alone was approximately $1.5 billion lower than in the fourth quarter of 2019 – a decrease of 48% compared to before the pandemic, suggesting an annual reduction of over $5.5 billion going forward. This decrease suggests average annual savings of more than $150 per household that incurs overdraft or NSF fees; many households have saved much more.

Since late 2021, several banks have announced changes to their overdraft programs that have been expected to result in reductions in overdraft/non-sufficient fund (NSF) fee revenue.

This report explores both the significant consumer impact of and industry reliance on credit card late fees.

This report describes overdraft practices and outcomes at several thousand credit unions and banks in 2014 using data provided by core processors.

This report uses call report data to study the evolution of banks’ reliance on overdraft and non-sufficient fund fees since 2015.