Menu

News

18 AGs Call on Banks to Eliminate Overdraft Fees

  • New York AG Letitia James led a coalition of 18 AGs in calling on several of the nation’s largest banks to eliminate overdraft and overdraft-related fees.
  • In letters to the CEOs of Bank of America, JPMorgan Chase, U.S. Bank, and Wells Fargo, the AGs applauded recent decisions by Citigroup Inc. and Capital One to eliminate certain consumer fees—including overdraft fees, returned item fees, insufficient fund fees, and overdraft protection fees—and urged the other banks to follow suit by eliminating overdraft and overdraft-related fees by the summer of 2022.
  • The letter further observed that in 2019 over $11 billion in overdraft fees were charged, primarily to the most vulnerable consumers with the lowest average account balances, and that “consumers of color are disproportionately affected by these fees, which frequently result in account closure and leave many affected consumers entirely unbanked.”