CFPB discusses impact of overdraft fees on seniors
On October 19, the CFPB released an issue brief, Overdraft Fees and Economically Insecure Older Adults, examining the economic effects of overdraft fees on economically insecure older adults. The Bureau noted that older adults of color, older women, LGBTQ+ older adults, and retirees are more likely to be economically insecure and may face greater challenges with overdraft fees. The brief also found that older adults pay fees for overdraft services less frequently than other age groups but stated that the economically insecure could be “particularly impacted” because “they are often unable to adjust their carefully managed budgets” when they incur fees. Among other things, the brief provided recommendations to financial institutions for implementing age-friendly banking practices, such as offering view-only account access and/or convenience accounts for financial caregivers. The brief also noted that financial institutions should provide customer service to respond to consumers’ concerns about bank fees in person, by phone, and online. The Bureau stated that it will “track the impact of overdraft fees on older adults” through analysis of consumer complaints, among other things.