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Financial Services Law Insights and Observations

CFPB reports on consumers’ experience with overdraft, NSF fees

Federal Issues CFPB Overdraft NSF Fees Fees Consumer Finance

Federal Issues

On December 19, the CFPB released a report titled Overdraft and Nonsufficient Fund Fees: Insights from the Making Ends Meet Survey and Consumer Credit Panel, a report providing insight into consumers’ experience with overdraft/NSF activity. The CFPB stated that the report is based on data from the 2023 Making Ends Meet survey (covered by InfoBytes here) and the CFPB’s Consumer Credit Panel. Among other findings, the report found that roughly a quarter of consumers reside in households that were charged an overdraft or NSF fee in the past year. The report additionally found that 43 percent of consumers charged an overdraft fee were surprised by their most recent account overdraft, while only 22 percent expected it. The report noted that this trend is more pronounced among those who experience infrequent overdrafts (15 percent) as opposed to those who have been charged multiple overdraft fees (56 percent).

The CFPB additionally highlighted most households incurring overdraft and NSF fees have available credit on a credit card, adding that “among consumers in households charged 0, 1-3, 4-10, and more than 10 overdraft fees in the past year, the shares with no credit available on a credit card are 19 percent, 32 percent, 38 percent, and 49 percent, respectively.”