RELEASE: CFPB's Final Rule on Overdraft Fees to Save Illinois Consumers Millions
FOR IMMEDIATE RELEASE
Contact: Anusha Thotakura
anusha@citizenaction-il.org
CFPB Saves Illinois Millions with Final Rule on Overdraft Fees
Illinoisans Must Urge Congress to Support the Cap on Junk Overdraft Fees
Chicago, Illinois—Illinois consumers burdened by abusive overdraft fee practices will receive some relief after today's announcement that the Consumer Financial Protection Bureau (CFPB) has finalized its overdraft rule. The rule will curb fees from $35 to $5 and is estimated to save consumers $5 billion each year nationwide, or $225 per household that pays overdraft fees.
The CFPB’s rule will prevent big banks from charging huge junk overdraft fees that burden families with hundreds of dollars a year and even push people out of the banking system. The rule will promote straightforward, affordable forms of coverage protection.
“By finalizing the overdraft rule, the CFPB has taken a critical step to protect Illinois families from exploitative junk fees," said Anusha Thotakura, Citizen Action/Illinois Director. "These fees disproportionately harm low-income families and communities of color, perpetuating financial inequities and deepening economic divides. This rule will save consumers billions and provide much-needed relief. We urge our Senators and Representatives to stand with Illinois families and ensure these protections remain intact."
The CFPB's action to protect consumers provides clear rules of the road to ensure consistency and clarity with overdraft products offered by the largest banks and financial institutions. The new rule could face the threat of being overturned by Congress using the Congressional Review Act (CRA), however, which allows Congress, with the President’s approval, to overturn rules using expedited procedures and a simple majority vote and limited debate.
“Illinoisans must urge our state’s Congressmembers and President-elect Trump to prioritize struggling families over big banks seeking to overturn the rule and remove the cap on overdraft fees,” said Thotakura.
Congress must protect this critical rule to ensure that families across Illinois and the nation are shielded from exploitative fees and can maintain access to a fair and inclusive banking system.
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