CFPB To Target Banking Fees In New Report

The Consumer Financial Protection Bureau today will release a report criticizing U.S. banks for their overdraft fee and multiple fee rules, according to the Wall Street Journal.

The report states that the CFPB will focus on larger banks rather than smaller banks. According to Moebs research, banks with more than $25 billion in assets had a median overdraft fee of $35 in 2012. Banks with less than $25 billion in assets had a fee of just $25. Overall, overdraft fees accounted for $32 billion in revenue in 2012.

The CFPB said it has no immediate plans to issue or recommend new overdraft fee rules. The agency’s last major crackdown on overdraft fees came in 2010.

“What is marketed as overdraft protection can, in some instances, put consumers at greater risk of harm,” said CFPB Director Richard Cordray. “Consumers need to be able to control their costs and expenses, and they deserve clarity on those issues.

Read the full story here.

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