John,

The Consumer Financial Protection Bureau (CFPB) needs your input now, as they seek public comment on their proposed rule to cap exploitative overdraft fees. This proposal is part of their effort to eliminate junk fees from banking.

Currently, overdraft fees can be as high as $39 per transaction, and if there are multiple transactions, that fees can build up quickly. Low-income earning families are the most likely to get hit by overdraft fees, and they’re also the least able to pay such punitive amounts.

Banks, on the other hand, can easily afford overdraft protection, which is basically a short-term loan, subject to the Truth in Lending Act and its consumer protections. In fact, as a loan, the bank will already be charging interest on the amount of the overdraft, so they do not need big fees to cover their costs.  

As the CFPB considers setting a benchmark overdraft fee between $3 and $14, contact them with a message in favor of the $3 fee, since low-income earning families are the most likely to be affected.

Only banks with assets over $10 billion -- about 175 of the largest banks in the country -- will be affected by the new rules. They can either use the CFPB’s benchmark, or set a fee based on their demonstrated costs. The CFPB estimates that, with these new rules in place, consumers could save $3.5 billion or more each year.

Needless to say, the banks are unleashing an army of lawyers to lobby against these new rules. That’s why the CFPB needs to hear from us, so they can hear directly how the public will be affected, and they will have counter-arguments to the high-powered protests from big banks with billions in assets.  

Please sign and send your message to the CFPB today. $3 will easily cover the costs of a multi-billion dollar bank that also collects interest on the same overdraft.

Thank you for helping bring more fair overdraft policies to the nation’s banks.

- Amanda

Amanda Ford, Director
Democracy for America
Advocacy Fund