Overdraft penalties cause many families severe financial distress even during the best of times. During the economic crisis caused by COVID-19, the devastating impact of overdraft fees has been even more pronounced.

Banks continue to collect over $11 billion in overdraft-related fees each year despite the fact these very same banks often engage in abusive practices that exacerbate – and sometimes even create – the lack of available funds in the first place.^[1]

The overwhelming majority of these fees are charged to the most economically vulnerable customers, often driving them out of the banking system altogether. Bank overdraft fees cause particular harm to low-income consumers and people of color, contributing to the fact that they are four to five times more likely to lack a bank account than white Americans.

The good news is the Consumer Financial Protection Bureau (CFPB) can do something about it.

It’s time for the CFPB to develop strong protections for consumers that will stop outrageous overdraft fees. Please join us in calling for action now.

^{[1] Banks Must Stop Gouging Consumers During the COVID-19 Crisis, Center for Responsible Lending, June 2020}