CFPB: Overdraft and NSF Fee Revenue Declined Since 2019

Posted: May 31 2023

The CFPB has issued a “data spotlight” that found that overdraft and NSF fee revenue decreased by 48% between the fourth quarter of 2022 and the fourth quarter of 2019. The CFPB explained that the reductions in the fee revenue are “likely due to changes in bank policies” regarding overdraft and NSF fees.
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At the same time, the “[e]vidence continues to suggest that financial institutions are not increasing other checking account fees to compensate for reduced overdraft/NSF fee revenue,” according to the CFPB. The CFPB included tables listing the overdraft and NSF fee revenue of the nation’s largest banks and a description of the changes those banks have made recently to their overdraft and NSF fee practices. The CFPB also stated that it “will continue to track overdraft/NSF fees” and is “considering rulemaking activities related to these fees,” without being more specific.

To read more, visit: https://www.consumerfinance.gov/data-research/research-reports/data-spotlight-overdraft-nsf-revenue-in-q4-2022-down-nearly-50-versus-pre-pandemic-levels/full-report/