Banks collected $12 billion in overdraft fees in 2025 after Congress reversed the $5 cap

Regulation
โดย Moneywise.com under the title·Read original
Summary · why it matters

Banks collected about $12 billion in overdraft and non-sufficient funds fees in 2025, returning to pre-pandemic levels after Congress reversed a Consumer Financial Protection Bureau rule that would have capped most overdraft fees at $5. The CFPB rule, issued in December 2024, would have required banks and credit unions with more than $10 billion in assets to reduce overdraft fees to $5, charge only costs or losses, or treat overdrafts as loans with disclosed interest rates, saving Americans an estimated $5 billion annually. Congress reversed the rule in 2025 before it took effect, and a National Consumer Law Center report shows the $12 billion in fees nearly matches the $11.96 billion collected in 2019. The average overdraft fee is $27 but can reach $42, and consumers can avoid charges by opting out of overdraft protection, linking savings accounts, or switching to banks like Capital One, Citibank, American Express, and Ally that have eliminated such fees.

Impact on stocks 3

Digital Finance & Tokenization▲ · 2 stocks
American Express Company
AXP
▲ PositiveCompetitionrelevance

American Express has eliminated overdraft fees, so the reversal of the $5 cap makes its fee-free model more attractive relative to competitors.

Citigroup Inc.
C
▲ PositiveCompetitionrelevance

Citibank has eliminated overdraft fees, so the reversal of the $5 cap makes its fee-free model more attractive relative to competitors.

Financials▲ · 1 stocks
Capital One Financial Corporation
COF
▲ PositiveCompetitionrelevance

Capital One has eliminated overdraft fees, so the reversal of the $5 cap makes its fee-free model more attractive relative to competitors.

© 2026 MarketDXNews