A recent National Consumer Law Center report suggests steps states can take to protect consumers in the wake of relaxed federal rules on overdraft and NSF fees. Those two charges cost Americans an estimated $12 billion in 2025.
Select report overdraft, NSF data
- Roughly 25% of households (disproportionately Black, poor and with limited education) pay overdraft fees every year;
- JP Morgan Chase and Wells Fargo each charged about $1 billion per year in overdraft fees in 2025;
- PNC’s fees rose 8% between 2023 and 2025, reaching $279 million;
- USAA Federal Savings Bank’s overdraft fee revenue rose 471% from 2023 to 2025; and
- Regions Bank, at $30 per account, had the most overdraft fee revenue among large banks.
In 2024, the CFPB issued a rule designed to save households $5 billion per year. This coerced many financial institutions to reduce or eliminate fees. After Congress reversed the rule in 2025 and the Trump Administration reversed the enforcement action, many resumed charging fees.
Important notes
- Credit union overdraft fees are no longer available after the National Credit Union stopped requiring institutions to report data;
- Capital One, Citibank, American Express, and Ally Bank don’t charge overdraft fees; and
- None of the top 20 banks charges NSF fees.
Suggested state actions to limit fees
- Maintain pressure for voluntary changes;
- Limit overdraft fees to $5;
- Prohibit NSF fees;
- Allow banks and credit unions to collect no more than six overdraft fees per year or fees totalling no more than $200 a year;
- Prohibit overdraft fees on debit card and ATM transactions;
- Prohibit multiple fees for a single negative balance episode, even one involving multiple payments or days;
- Require a $50 cushion for small overdrafts and a 24-hour grace period before charging a fee;
- Ban “surprise” overdraft fees incurred when the balance was positive at the time of the transaction, but later settled negative; and
- Collect data on overdraft and NSF fees to spotlight institutions that abuse their customers and those that do not.
