CFPB: Overdraft, NSF fee income dropped 24% in past two years

Decrease saved the average household that overdrafts $185 each year

Overdraft and nonsufficient fund fee revenue at the nation’s banks dropped 24% between 2022 and 2023, the Consumer Financial Protection Bureau reported this week.

Income from those fees has decreased by $6.1 billion since before the pandemic, saving the average household that overdrafts $185 each year, the agency said in a “Data Spotlight.

The CFPB has lumped overdraft and NSF fees in the category of “junk fees” that the agency believes should be limited. The CFPB has proposed subjecting overdraft fees to the same regulatory requirements as consumer loans at the nation’s largest banks and credit unions. The bureau has solicited comments on a cap on those fees.

“Despite these declines, reporting banks collected $5.8 billion in overdraft/NSF fees from their customers in 2023,” the CFPB said. “Though many banks have made a range of changes to their policies in recent years, some banks continue to charge overdraft fees as high as $37 each.”


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