Overdraft fees continue to affect consumers, with more than 25% reporting paying these charges and nearly half saying they were surprised by their most recent fee. Banks collected $6.1 billion in overdraft revenue in 2024, marking a shift from years of decline associated with pandemic stimulus and regulatory pressure. However, the rollback of key federal protections—such as a rescinded Consumer Financial Protection Bureau rule that would have capped fees at $5—combined with rising class action lawsuits and intensifying state regulation underscore the evolving legal and regulatory landscape.
In "Surveying the Changing Overdraft Fee Landscape," Amanda Kurzendoerfer discusses the intricacies of overdraft policies at major financial institutions, exploring how seemingly minor variations are associated with large differences in bank overdraft revenue and how states like New York and California are stepping in with tighter restrictions. The article includes tables showing bank fees to highlight notable patterns and trends, revealing how variations in fee structures and conditions—such as grace periods or daily fee caps—shape overdraft revenue and consumer impact. With federal interest on overdraft oversight waning, the door is open for state regulators and legal advocates to influence the future of these charges.
