Overdrawing bank accounts cost consumers an average of $225 in overdraft fees each year, and more than double that amount for those who chronically overdraw their account. Currently, the average NSF fee is $33.36. These non-sufficient fund fees (NSF) provide banks with at least 60% of all consumer checking account revenue, or about $34 billion each year. Overdraft policies vary from bank to bank. Some banks limit customer’s NSF charges to two per day while others can charge as many as 5. Some don’t charge NSF fees for minor overdraws up to $5 while others charge for any amount overdrawn. Consumers complain these fees can often be much higher than the amount overdrawn and can be caused by banks delaying the processing of their ATM deposits. Studies show 70% of all banks let customers overdraw their ATM accounts when a bank teller would not allow the transaction.
Pending Legislation: H.R.4277 - Overdraft Protection Act of 2021
Sponsor: Rep. Carolyn Maloney (NY)
Status: House Committee on Financial Services
Chair: Rep. Maxine Waters (CA)
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