Banks Keep Overdraft Fees as High as $42 After Congress Killed $5 Cap
Updated
Updated · The New York Times · Jul 3
Banks Keep Overdraft Fees as High as $42 After Congress Killed $5 Cap
2 articles · Updated · The New York Times · Jul 3
Summary
$27 is the average overdraft fee at banks, and some still charge as much as $42 after Congress scrapped a Biden-era rule that would have capped most fees at $5.
The abandoned rule was projected to save households that overdraw accounts an average of $225 a year, but it never took effect after being struck down last year.
About half of transactions that trigger an overdraft fee are $50 or less, and banks can add more charges if an account shortfall persists beyond any grace period.
Billions of dollars in overdraft revenue come from a small share of customers, with federal research showing lower-income, lower-credit-score, less educated and nonwhite consumers are more likely to be hit.