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Published: June 2021

Advocates join in support of legislation that targets predatory banking fees

Consumer advocates joined together in support of the Overdraft Protection Act of 2021. Banks earn billions every year from so-called overdraft protection programs—this legislation would set important limits on how often fees can be charged, improve transparency and disclosure of fees, and stop banks from automatically enrolling customers in the first place.

According to an S&P Global Market Intelligence article from earlier this year, large banks collected $8.8 billion in overdraft fees alone and reported more than $147 billion in net income in 2020. These “gotcha fees” disproportionately penalize low-income Americans who are already struggling financially. Among other important provisions, the Overdraft Protection Act of 2021 would limit the number of overdraft fees banks can charge per month and year and require that banks inform customers about alternative (and less costly) overdraft programs.

Lead Organization

Americans for Financial Reform (AFR)

Other Organizations

Americans for Financial Reform | Center for Responsible Lending | Consumer Action | Consumer Reports | National Consumer Law Center (on behalf of its low-income clients) | U.S. PIRG | The Leadership Conference on Civil and Human Rights | Consumer Federation of America

More Information

Click here to learn more about the Overdraft Protection Act of 2021.

Click here to read the S&P Global Market report.

 

 

 

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