{"id":103938,"date":"2025-02-22T19:44:49","date_gmt":"2025-02-22T19:44:49","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/finance\/will-overdraft-fees-increase-under-trump-7-banks-policies\/"},"modified":"2025-02-22T19:44:49","modified_gmt":"2025-02-22T19:44:49","slug":"will-overdraft-fees-increase-under-trump-7-banks-policies","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=103938","title":{"rendered":"Will Overdraft Fees Increase Under Trump? 7 Banks’ Policies"},"content":{"rendered":"


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Many Americans celebrated last year when government officials announced a restriction on $35 bank overdraft fees for checking accounts. But with the change in leadership in D.C., it’s now unclear whether this will happen. <\/span><\/p>\n

President Donald Trump and Tesla CEO Elon Musk want to dramatically reduce \u2014 if not kill \u2014 the regulatory authority of the Consumer Financial Protection Bureau, the 14-year-old agency behind the rule limiting overdraft fees<\/a>. This could mean that high overdraft fees, which can be a significant financial burden for folks tight on funds, are here to stay after all.<\/p>\n

Some banks, like Citi and Capital One, have fully eliminated overdraft fees and told Money they’re committed to their policies \u2014 no matter what happens at the federal level.<\/p>\n

However, other major banks have yet to offer the same relief to customers. Banks including JPMorgan Chase, Wells Fargo, U.S. Bank and PNC still charge overdraft fees of $34 to $36, collecting hundreds of millions per year off them. These banks are likely hoping that the Trump administration and the GOP-controlled Congress can reverse the Biden-era regulations.<\/p>\n

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Trump admin looks to undo ‘midnight’ rule on overdraft fees<\/h2>\n

In December, the CFPB announced<\/a> a final rule that would end “excessive” overdraft fees effective Oct. 1, 2025, capping the charges \u2014 which typically run around $35 \u2014 at $5. Alternatively, banks could charge an overdraft amount just high enough to cover their costs or losses. Or they could offer overdraft loans (if the terms and interest rates for these credit lines were disclosed).<\/p>\n

While many consumers were excited about this change, the regulation is now in jeopardy. An effort in Congress spearheaded by Rep. French Hill, R-Ark., and Sen. Tim Scott, R-S.C., aims to repeal the CFPB rule before it takes effect this fall.<\/p>\n

Meanwhile, the banking industry hasn’t given up fighting it in court<\/a>.<\/p>\n

A spokesperson for the Consumer Bankers Association, a group that represents retail banks, tells Money that the rule “is an illegal and harmful overreach that threatens millions of Americans’ access to liquidity.” Banks also argue that overdraft fees support their ability to let customers pay for some transactions with negative balances, which can help people access necessities like food and utilities \u2014 just at a very high cost.<\/p>\n

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What the CFPB shakeup means for overdraft fees<\/h2>\n

CFPB Interim Director Russell Vought said in a post on X<\/a> that he is “grateful” for the legislation aimed at rolling back the Biden administration’s “midnight rule” limiting overdraft fees, adding that the repeal attempt aligns with Trump’s “deregulatory agenda.”<\/p>\n

Earlier this month, the president picked Vought to lead the bureau after firing Rohit Chopra<\/a>, the agency’s director under former President Joe Biden. Chopra’s CFPB had estimated<\/a> the overdraft rule would save Americans a collective $5 billion per year.<\/p>\n

The Trump administration appears to be still determining exactly what it wants to do with the CFPB \u2014 an agency that figures including Musk<\/a> have indicated they want to “delete.” Musk’s Department of Government Efficiency, or DOGE, has already fired dozens of CFPB staffers.<\/p>\n

But as the Trump administration eases back on bank regulation and halts CFPB activity, consumer advocates say bank customers are the ones who will suffer.<\/p>\n

Lauren Saunders, associate director of the National Consumer Law Center, argued in a Feb. 13 news release<\/a> that “Republican leadership is siding with Wells Fargo and other big banks over working families hurt by abusive overdraft fee practices.” (The NCLC is part of a group that has filed a lawsuit trying to stop the Trump administration’s efforts to “dismantle” the CFPB.)<\/p>\n

Right now, the fate of the rule is still up in the air, and there’s also uncertainty around what would happen to overdraft fees if it were to go into effect. But while the situation unfolds, here’s what seven banks are saying about their policies:<\/p>\n

Wells Fargo<\/h2>\n