Banks Brace for Overdraft Scrutiny From Biden’s Bank Regulators

Federal regulators are expected to take steps in the coming months to curtail overdraft fees even after several larger banks have voluntarily reined in their practices.

Overdraft fees were in the Consumer Financial Protection Bureau’s crosshairs during the Obama administration and are likely to be again if President Joe Biden’s nominee for director, Rohit Chopra, wins Senate confirmation as expected. The Office of the Comptroller of the Currency is already scrutinizing banks that might be overreliant on fees to remain profitable, and other regulators are expected to act as well.

“Excessive fees on overdrafts, predatory lending, high-cost debt traps, all ...