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Overdraft Fees Show Need for More Bank Competition, CFPB Says (1)

Dec. 1, 2021, 7:37 PMUpdated: Dec. 1, 2021, 10:38 PM

The CFPB plans to ramp up enforcement against bank overdraft practices and make it easier for consumers to “vote with their feet” by leaving banks that charge excessive fees, the agency’s director said.

While a number of banks, including most recently Capital One Financial Corp., have reduced or eliminated overdraft fees, large financial institutions remain heavily reliant on the fees to drive up revenues, Rohit Chopra of the Consumer Financial Protection Bureau said Wednesday on a call with reporters.

Banks collected $15.47 billion in overdraft and non-sufficient fund fees in 2019, according to a CFPB study released before the ...