Democratic Senators Press 25 Banks on Overdraft Fees After CFPB Rule Repeal

In 2025, President Trump repealed a Consumer Financial Protection Bureau (CFPB) rule that capped overdraft fees at $5, a move that Democratic senators Elizabeth Warren, Richard Blumenthal, and Bernie Sanders argue will disproportionately harm lower-income consumers. These senators have sent letters to 25 major banks, including JPMorgan Chase, Wells Fargo, and Bank of America, demanding detailed information on their overdraft policies and the financial impact of the repeal. They highlight that overdraft fees often exploit vulnerable customers with modest bank balances, contributing to a cycle of debt and increased account closures, which contradicts President Trump's stated goal of reducing debanking. The CFPB, an agency Warren helped establish, had previously closed loopholes that allowed excessive overdraft fees, leading to nearly $250 million refunded to consumers since 2022. The Trump administration is also attempting to dismantle the CFPB by laying off most of its staff and reversing key protections, despite the bureau's unique consumer protection mandate. The senators' efforts seek to shed light on how banks plan to adjust fees and revenues following the rule's nullification amid a broader political struggle over financial regulation.