CFPB Targets Bank Overdraft Fees
The Consumer Financial Protection Bureau (CFPB) is preparing to make it much harder for banks to charge clients overdraft fees. Agency officials have privately told industry executives that the regulator will likely unveil its long-awaited plan to crack down in December, according to people familiar with the discussions.
Bloomberg reports that CFPB has been crafting the regulations for months, and most of the details remain secret.
Wells Fargo reached a $3.7 billion settlement with federal regulators in December to settle allegations of “surprise” overdraft fees and other charges. Regions Financial also agreed to pay $191 million to settle a similar case in September 2022.
The CFPB has not commented on the timing of its plans, has said banks got nearly $8.5 billion in 2021 from insufficient fund and certain low-balance fees.