Senate Democrats Question Banks on Overdraft Fee Practices

U.S. Senate Democrats requested detailed information about overdraft fee practices from twenty-five of the nation’s largest banks. The request follows the nullification of a CFPB final rule which would have capped most overdraft fees at $5.

Senators Elizabeth Warren, Ranking Member, Senate Banking Committee, Bernie Sanders and Richard Blumenthal requested that each bank provide five years of overdraft and NSF revenue data, the share of customers paying these fees, and information on how policies, such as grace periods and transaction posting order, affect outcomes. They also asked for data on accounts closed due to fees and any planned changes to overdraft programs.

The Senators asserted that the repeal of the CFPB’s final rule limiting overdraft fees has worsened the problem of predatory overdraft charges. (See previous coverage.) They emphasized that the rule was projected to save households billions each year, more than $200 annually for those most affected, and argued that its repeal leaves families vulnerable while allowing banks to continue profiting from these fees.

The Senators argued that overdraft and non-sufficient fund ("NSF") fees fall hardest on low-balance families, citing data showing that middle-income households are nearly twice as likely as higher-income households to be charged, and that a small share of customers bear most of the costs. They stated that the fees act as a "tax on the poor," extracting billions while boosting bank profits. The legislators linked these fees to involuntary account closures and "debanking." The Senators stated that repealing the CFPB rule will worsen the problem and undermine President Trump’s stated goal of expanding access to banking.

The Senators requested a response by September 12, 2025.