CFPB Caps Overdraft Fees at $5, Wiping Out Most of Banks' $12B Revenue Stream
The CFPB has finalized a rule capping overdraft fees at $5, down from a $27 industry average.<sup>1</sup> Banks and credit unions collected about $12 billion in overdraft and NSF fees in 2025, and regulators rate the revenue hit as catastrophic with high likelihood.<sup>2</sup> The cap effectively eliminates the fee structure lenders have relied on for decades.
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