The Consumer Financial Protection Bureau issued a report on consumer experiences with overdraft and non-sufficient-fund fees ahead of an expected rulemaking.

Survey Report: The report on a recent CFPB survey said:

  • More than a quarter of consumers responded that someone in their household was charged an overdraft fee or NSF fee within the past year.

  • Many consumers who were charged overdraft fees had access to a cheaper alternative, such as available credit on a credit card.

  • Among consumers in households charged an overdraft fee in the past year, 43% were surprised by their most recent overdraft while 22% expected it.

  • In households charged more than 10 such fees in a year, more than half of respondents reported that they expected their most recent overdraft, indicating many consumers use overdrafts intentionally.

Pending Rulemaking: CFPB Director Rohit Chopra last month told Congress the bureau’s pending overdraft proposed regulation will focus on addressing illegal overdraft abuses, not eliminating overdraft programs. After previously reporting that the bureau would release an overdraft proposal this month, Bloomberg on Tuesday reported that while the proposal was delayed, the survey report indicates what the bureau will focus on in the rulemaking.

ICBA View: ICBA has repeatedly pushed back against the Biden administration’s campaign against “junk fees,” noting the narrative mischaracterizes practices such as overdraft services and credit card late fees. Responding to President Joe Biden’s State of the Union address earlier this year, ICBA said community bank practices are appropriate and do not constitute surprise “junk fees.”