""Overdraft and non-sufficient fund (NSF) fees are 'one of the most common exploitative mechanisms big banks use to target the poor,' Senators Elizabeth Warren (D-Massachusetts), Richard Blumenthal (D-Connecticut), and Bernie Sanders (I-Vermont) wrote to 25 banks on August 28, including JPMorgan Chase, Wells Fargo, PNC Bank, TD Bank, and Bank of America. 'When consumers' finances are already stretched thin, exorbitant overdraft fees can cause other payments to bounce - leading to even more fees in a vicious circle that can 'turn setbacks into crises,'""
""Banks have collected billions of dollars in overdraft fees from some of their poorest customers. Frequent over-drafters have an average of less than $350 in the bank, the senators wrote. In 2024, JPMorgan and Wells Fargo each collected more than a billion dollars in overdraft fees; PNC Bank collected over $280 million; TD Bank collected just under $230 million; and Bank of America collected close to $150 million.""
President Trump repealed a $5 cap on most overdraft fees that had been set to take effect in October. Senators Elizabeth Warren, Richard Blumenthal, and Bernie Sanders requested information from 25 banks about overdraft policies and profits. The senators described overdraft and non‑sufficient fund (NSF) fees as common exploitative mechanisms that target low‑income customers. Exorbitant overdraft fees can cause other payments to bounce and create a vicious cycle that turns setbacks into crises. Major banks collected billions in overdraft fees in 2024, with JPMorgan and Wells Fargo each collecting over $1 billion. Frequent over‑drafters average under $350 in their accounts, and CFPB analysis shows a disproportionate impact on households earning $35,001–$65,000.
Read at Truthout
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