Overdraft
What It Is
A growing share of America’s leading banks have responded to evolving demands by unveiling innovative services designed to help consumers avoid overdrafts or to provide an overdraft product with features selected by the consumer. Yet, policymakers in Washington continue to scrutinize fee-based bank services like overdraft that are valued by millions of consumers in times of need. On January 17, 2024, the CFPB proposed an overdraft rule that would fundamentally restructure and restrict consumer overdraft services offered by banks that exceed $10 billion in assets.
Why It Matters
Whether they come from regulators or policymakers, the attacks on overdraft fail to reflect the growing number of innovative overdraft services and policies introduced over the past several years by America’s leading banks to provide consumers with even greater choice and flexibility to meet their needs within the highly competitive and well-regulated banking system.
