Report: Consumers Paid Over $2 Billion in Overdraft Fees in 2023

America's largest banks earn big profits from consumer fees

A report released today indicates that the 10 largest banks still charging overdraft fees raked in more than $2.34 billion from the fees as of the end of September 2023.

The banks include giants such as Wells Fargo, JP Morgan Chase, and Bank of America - institutions that have all faced recent fines for illegal activity targeting consumers.

Consumer advocates say the profits from overdraft fees are outrageous and harmful to customers.

“Overdraft fees cost families billions of dollars in 2023 alone—fees that we know disproportionately affect low-income Americans,” said Liz Zelnick, Director Of Accountable.US’ Economic Security & Corporate Power Program. “While megabanks pretend these fees are for our benefit, the truth is that they are nothing more than a profit-driving tactic. By cracking down on corporate greed and limiting overdraft fees, the Biden administration continues to lower costs across the nation no matter how hard banking lobbyists defend their shadiest practices.”

The Consumer Financial Protection Bureau (CFPB) has said it is planning to take action to rein-in overdraft fees.

"These often exploitative and hidden fees can have a significant impact on a family’s bank account, and as a result, we have been closely monitoring those institutions," said CFPB Director Rohit Chopra.

Photo byMoney KnackonUnsplash